Iot In Banking And Financial Services Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

The IoT in Banking and Financial Services Market Report Segments the Industry Into by Offering (Hardware, Software, and Services), Connectivity (Wired, and Wireless), Deployment (Cloud, and On Premise), Application (Payment and Transaction Security, Customer Experience Management, and More), End User (Banks, Insurance Companies, and More), and Geography.

IoT In Banking And Financial Services Market Size and Share

IoT In Banking And Financial Services Market Summary
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IoT In Banking And Financial Services Market Analysis by Mordor Intelligence

The IoT in Banking and Financial Services market reached USD 61.23 billion in 2025 and is forecast to climb to USD 108.92 billion by 2030, advancing at a 12.21% CAGR. Rapid connected-device penetration, the maturation of 5G, and real-time fraud analytics are redefining how institutions manage risk, customer engagement, and branch operations. Convergence of edge computing with advanced authentication is shortening settlement cycles, while open-API regulations are driving ecosystem interoperability. Hardware commoditization is shifting competitive advantage toward services that integrate, secure, and scale deployments. Accelerating payment digitalization and usage-based insurance pricing continue to open fresh revenue streams across the IoT in Banking and Financial Services market.

Key Report Takeaways

  • By offering, services held 47.8% of the IoT in Banking and Financial Services market share in 2024 and are projected to expand at a 43% CAGR to 2030.
  • By connectivity, wireless solutions commanded 63.9% share of the IoT in Banking and Financial Services market in 2024, while the segment continues to rise at a 37.6% CAGR through 2030.
  • By deployment, cloud platforms accounted for 57.89% share of the IoT in Banking and Financial Services market size in 2024 and are advancing at a 45.8% CAGR to 2030.
  • By application, payment and transaction security contributed 34.65% revenue share in 2024; fraud detection and prevention is the fastest-growing application at 44.69% CAGR through 2030.
  • By geography, North America led with 37.6% revenue share in 2024, whereas Asia-Pacific is forecast to post the highest 28.31% CAGR to 2030.
  • By end user, banks retained 42.1% IoT in Banking and Financial Services market share in 2024; insurance is projected to record a 42.11% CAGR to 2030.

Segment Analysis

By Offering: Services Drive Implementation Excellence

Services commanded a 47.8% IoT in Banking and Financial Services market share in 2024 and will grow at 43% CAGR to 2030. Integration, consulting, and managed services have proven indispensable as institutions navigate stringent oversight, complex device mixes, and multilayer security. Hardware, while necessary, is becoming commoditized, nudging margins lower each year. Software sits between the two, adding analytics, orchestration, and interface logic. Citizens Bank saved USD 1 million annually through a services-led data-streaming overhaul that optimized compute loads and monitoring thresholds. Services providers therefore stand at the project epicenter, translating road-maps into secure, production-scale rollouts that continue to shape the IoT in Banking and Financial Services market.

Hardware remains relevant for specialized sensors, biometric scanners, and ruggedized ATM modules but grows more slowly as common standards spread. The segment nevertheless benefits from retrofit cycles that replace aging endpoints with power-efficient, AI-capable counterparts. Software platforms, meanwhile, monetize via subscription, bundling risk engines, API gateways, and dashboard analytics. With regulatory scrutiny intensifying, demand for managed compliance services is expected to rise sharply, locking in multi-year contracts that stabilize vendor revenue. This service-centric dynamic indicates that the IoT in Banking and Financial Services industry will reward integrators with deep banking know-how over pure hardware innovators.

Iot In Banking And Financial Services Market
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Note: Segment Share of all individual segments available upon report purchase

By Connectivity: Wireless Solutions Enable Flexible Deployment

Wireless held 63.9% share of the IoT in Banking and Financial Services market in 2024 and is anticipated to advance at a 37.6% CAGR through 2030. Cellular 5G underpins high-bandwidth, low-latency use cases like real-time fraud interdiction, while private LTE supports always-on ATMs in remote areas. Wi-Fi 6 upgrades improve branch analytics by streaming high-resolution video without bottlenecks. Bluetooth Low Energy in smart payment cards lets issuers deliver secure, contactless transactions embedded in slim form factors; Nordic Semiconductor’s dual-mode chipsets illustrate how low-power radios extend battery life while maintaining cryptographic performance[3]Nordic Semiconductor, “Dual-Mode Bluetooth Payment Card SoC,” nordicsemi.com.

Wired Ethernet and fiber links persist inside data centers and vault rooms where throughput and tamper resistance override flexibility. Yet the adoption curve favors untethered deployments that can be relocated or resized with limited labor. Institutions also prefer operating-expense connectivity subscription models to capital-intensive cabling work. As spectrum auctions open fresh mid-band frequencies, network operators will prioritize fintech traffic slices that guarantee deterministic performance. These developments reinforce wireless as the backbone of the IoT in Banking and Financial Services market.

By Deployment: Cloud Platforms Accelerate Innovation

Cloud architectures represented 57.89% share of the IoT in Banking and Financial Services market size in 2024 and are forecast to expand at 45.8% CAGR to 2030. Banks migrate workloads to take advantage of elastic scaling, built-in AI services, and rapid API provisioning. CaixaBank earmarked EUR 5 billion for its Cosmos cloud-modernization program, blending generative AI with data-lake analytics to boost personalized offers. Cloud-native IoT hubs reduce provisioning from months to days, slashing time-to-market for new features.

On-premise deployments persist for latency-sensitive or sovereignty-bound data, prompting hybrid patterns. Edge gateways preprocess sensor feeds locally before syncing to cloud models, maintaining customer privacy while exploiting high-powered analytics. Disaster-recovery postures improve as multi-zone cloud architectures insulate operations from regional outages. Platform vendors embed compliance templates that map directly to ISO 27001 and PCI-DSS, simplifying audits. Overall, cloud uptake signals that agility and cost transparency outweigh legacy attachment across the IoT in Banking and Financial Services market.

By Application: Security Applications Lead Market Penetration

Payment and transaction security contributed 34.65% of segment revenue in 2024, underscoring how threat mitigation dominates project planning. Adaptive risk scoring, biometric confirmation, and tokenized card emulation now ship as baseline modules in major rollouts. Fraud detection and prevention solutions expand fastest at 44.69% CAGR to 2030, propelled by AI models that learn from cross-channel telemetry. Institutions deploy device fingerprints, geolocation checks, and behavioral analytics in tandem, reducing false positives and streamlining customer experience.

Customer-experience management is gaining share as banks convert branch traffic data into queue-optimization insights and craft hyper-personalized mobile journeys. Asset monitoring, such as smart ATM self-healing modules, curbs field-service calls and energy use. ENTOUCH’s integrated facility platform reports 329% five-year ROI owing to energy savings. As compliance obligations grow, risk-management dashboards stitch together audit trails, device attestations, and policy exceptions, embedding governance inside the IoT in Banking and Financial Services market.

Iot In Banking And Financial Services Market
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Note: Segment share of all individual segments available upon report purchase

By End User: Banks Lead While Insurance Accelerates

Banks captured 42.1% IoT in Banking and Financial Services market share in 2024 by leveraging large IT budgets and existing channel footprints. They pilot connected branches, biometric ATMs, and micro-location marketing. Insurers, however, post the highest 42.11% CAGR to 2030 as telematics unlocks usage-based premiums. ApexTech’s driving-behavior sensor suite inputs directly into actuarial models, cutting claim fraud and rewarding safe customers.

Investment firms adopt real-time data feeds for algorithmic trading, while fintechs embed micro-lending inside consumer devices. Credit unions and payment processors retrofit legacy cores to match digital-first challengers. Cross-segment partnerships, such as Verizon with Santander’s Openbank, illustrate convergence where telecoms deliver co-branded savings products. Such collaborations widen the usage canvas, accelerating penetration across the IoT in Banking and Financial Services market.

Geography Analysis

North America retained 37.6% IoT in Banking and Financial Services market share during 2024, anchored by FedNow’s real-time payment mandate, strict state cybersecurity statutes, and robust capital expenditure capacity. JPMorgan Chase’s USD 200 million branch-sensor retrofit typifies regional scaling efforts[2]JPMorgan Chase, “Biometric Payment Pilot,” americanbanker.com. Canadian banks advance interoperable digital-ID ecosystems through the Pan-Canadian Trust Framework, integrating biometric devices into KYC workflows. Mexico’s fintech law catalyzes smart-ATM rollouts to serve cash-reliant populations while meeting anti-fraud directives.

Asia-Pacific is surging at 28.31% CAGR toward 2030. China’s mobile payments already power nearly 70% of e-commerce spend, creating fertile ground for embedded IoT banking. Digital banks such as WeBank and KakaoBank leverage AI, cloud, and IoT to service customers at scale, skipping physical branches completely. Singapore’s MAS and Malaysia’s BNM issue tailored digital-bank licenses that embed device-level security requirements. India’s Unified Payments Interface supports billions of daily transactions, pushing banks to deploy IoT observability for uptime and fraud control.

Europe balances compliance and innovation, guided by PSD2, GDPR, and Instant Credit Transfers obligations that escalate demand for real-time monitoring. Banks integrate IoT gateways to derive instant SEPA settlement status while feeding audit logs into cloud SIEM systems. Middle East and Africa witness IoT-enabled financial-inclusion pilots; Ghana and Rwanda automate consumer-protection hotlines via AI chatbots connected to regulator dashboards. South America’s open-finance reforms, led by Brazil, entice fintechs to deploy IoT-native micro-POS terminals in underserved locales, further broadening the IoT in Banking and Financial Services market footprint.

Iot In Banking And Financial Services Market
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Competitive Landscape

The IoT in Banking and Financial Services market is moderately fragmented. IBM, Microsoft, and Cisco ship horizontal platforms that bundle device management, AI analytics, and security, catering to tier-1 institutions needing enterprise-grade scale. KORE Wireless, InHand Networks, and Aeris specialize in LTE/5G connectivity, offering turnkey SIM lifecycle services that simplify global rollouts. Parabit’s access-control hardware protects 24 of the top 25 US retail banks, spotlighting depth over breadth.

Fintech disruptors exploit niche opportunities. Thought Machine’s cloud-native core pairs with Mastercard to speed real-time settlement APIs, edging into traditional vendor territory. Volante Technologies teams with Standard Bank to deliver Payments-as-a-Service across Africa, levering IoT telemetry to optimize uptime. Strategic alliances are multiplying: Citi inked a multi-year Google Cloud pact covering IoT observability, while Deutsche Bank joined Mastercard to power Request-to-Pay channels.

Pricing pressure keeps barriers moderate. Vendors differentiate through regulatory toolkits, AI model libraries, and managed-service SLAs rather than hardware specs. The top five suppliers collectively control roughly 60-65% of global revenue, leaving room for vertical specialists, suggesting steady but not overwhelming consolidation within the IoT in Banking and Financial Services market.

IoT In Banking And Financial Services Industry Leaders

  1. IBM Corporation

  2. Microsoft Corporation

  3. Cisco Systems, Inc.

  4. Oracle Corporation

  5. SAP SE

  6. *Disclaimer: Major Players sorted in no particular order
IoT In Banking And Financial Services Market Concentration
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Recent Industry Developments

  • June 2025: HSBC expanded its stake in Token.io to boost account-to-account payments across Europe, targeting 30% jumps in Pay by Bank volumes.
  • June 2025: Deutsche Bank partnered with Mastercard to embed Request-to-Pay in merchant solutions, showcased at Money 20/20 Amsterdam.
  • May 2025: Auric raised EUR 4 million to scale its embedded-finance IoT platform.
  • March 2025: Verizon and Santander launched Verizon + Openbank Savings, amassing more than USD 3 billion in deposits since late 2024.

Table of Contents for IoT In Banking And Financial Services Industry Report

1. INTRODUCTION

  • 1.1 Study Assumptions and Market Definition
  • 1.2 Scope of the Study

2. RESEARCH METHODOLOGY

3. EXECUTIVE SUMMARY

4. MARKET LANDSCAPE

  • 4.1 Market Overview
  • 4.2 Market Drivers
    • 4.2.1 Rising demand for contactless payments and digital wallets
    • 4.2.2 Growing adoption of IoT for enhanced branch and ATM security
    • 4.2.3 Regulatory push for real-time payments and open banking APIs
    • 4.2.4 Edge-compute fraud analytics at ATM level
    • 4.2.5 IoT-driven usage-based insurance pricing models
    • 4.2.6 Smart branch sensor networks for energy and capex optimisation
  • 4.3 Market Restraints
    • 4.3.1 Data privacy and cybersecurity concerns
    • 4.3.2 High integration and upgrade costs
    • 4.3.3 Interoperability gaps with legacy core-banking systems
    • 4.3.4 Urban wireless-spectrum scarcity for low-latency IoT traffic
  • 4.4 Evaluation of Critical Regulatory Framework
  • 4.5 Technological Outlook
  • 4.6 Porter's Five Forces
    • 4.6.1 Bargaining Power of Suppliers
    • 4.6.2 Bargaining Power of Buyers
    • 4.6.3 Threat of New Entrants
    • 4.6.4 Threat of Substitutes
    • 4.6.5 Competitive Rivalry
  • 4.7 Impact Assessment of Key Stakeholders
  • 4.8 Key Use Cases and Case Studies
  • 4.9 Impact on Macroeconomic Factors of the Market
  • 4.10 Investment Analysis

5. MARKET SIZE AND GROWTH FORECAST (VALUE)

  • 5.1 By Offering
    • 5.1.1 Hardware
    • 5.1.2 Software
    • 5.1.3 Services
  • 5.2 By Connectivity
    • 5.2.1 Wired
    • 5.2.1.1 Ethernet
    • 5.2.1.2 Fiber
    • 5.2.2 Wireless
    • 5.2.2.1 Wi-Fi
    • 5.2.2.2 Bluetooth
    • 5.2.2.3 Zigbee
    • 5.2.2.4 Cellular (4G/5G)
    • 5.2.2.5 NFC
  • 5.3 By Deployment
    • 5.3.1 Cloud
    • 5.3.2 On-Premise
  • 5.4 By Application
    • 5.4.1 Payment and Transaction Security
    • 5.4.2 Customer Experience Management
    • 5.4.3 Data Management and Analytics
    • 5.4.4 Fraud Detection and Prevention
    • 5.4.5 Risk and Compliance Management
    • 5.4.6 Asset and Equipment Monitoring (Smart ATM and Branch)
    • 5.4.7 Smart Insurance and Telematics
  • 5.5 By End User
    • 5.5.1 Banks
    • 5.5.2 Insurance Companies
    • 5.5.3 Investment Firms
    • 5.5.4 FinTech Companies
    • 5.5.5 Credit Unions
    • 5.5.6 Payment Processors and Card Networks
  • 5.6 By Geography
    • 5.6.1 North America
    • 5.6.1.1 United States
    • 5.6.1.2 Canada
    • 5.6.1.3 Mexico
    • 5.6.2 South America
    • 5.6.2.1 Brazil
    • 5.6.2.2 Argentina
    • 5.6.2.3 Rest of South America
    • 5.6.3 Europe
    • 5.6.3.1 United Kingdom
    • 5.6.3.2 Germany
    • 5.6.3.3 France
    • 5.6.3.4 Italy
    • 5.6.3.5 Spain
    • 5.6.3.6 Nordics
    • 5.6.3.7 Rest of Europe
    • 5.6.4 Middle East and Africa
    • 5.6.4.1 Middle East
    • 5.6.4.1.1 Saudi Arabia
    • 5.6.4.1.2 United Arab Emirates
    • 5.6.4.1.3 Turkey
    • 5.6.4.1.4 Rest of Middle East
    • 5.6.4.2 Africa
    • 5.6.4.2.1 South Africa
    • 5.6.4.2.2 Egypt
    • 5.6.4.2.3 Nigeria
    • 5.6.4.2.4 Rest of Africa
    • 5.6.5 Asia-Pacific
    • 5.6.5.1 China
    • 5.6.5.2 India
    • 5.6.5.3 Japan
    • 5.6.5.4 South Korea
    • 5.6.5.5 ASEAN
    • 5.6.5.6 Australia
    • 5.6.5.7 New Zealand
    • 5.6.5.8 Rest of Asia-Pacific

6. COMPETITIVE LANDSCAPE

  • 6.1 Market Concentration
  • 6.2 Strategic Moves
  • 6.3 Market Share Analysis
  • 6.4 Company Profiles (includes Global level Overview, Market level overview, Core Segments, Financials as available, Strategic Information, Market Rank/Share for key companies, Products and Services, and Recent Developments)
    • 6.4.1 International Business Machines Corporation
    • 6.4.2 Microsoft Corporation
    • 6.4.3 Cisco Systems, Inc.
    • 6.4.4 Oracle Corporation
    • 6.4.5 SAP SE
    • 6.4.6 Intel Corporation
    • 6.4.7 Huawei Technologies Co., Ltd.
    • 6.4.8 Amazon Web Services, Inc.
    • 6.4.9 Fujitsu Limited
    • 6.4.10 Accenture plc
    • 6.4.11 NCR Corporation
    • 6.4.12 Diebold Nixdorf, Incorporated
    • 6.4.13 Fiserv, Inc.
    • 6.4.14 Temenos AG
    • 6.4.15 Thales Group
    • 6.4.16 Fortinet, Inc.
    • 6.4.17 Worldline SA (Ingenico)
    • 6.4.18 Honeywell International Inc.
    • 6.4.19 Verizon Communications Inc.
    • 6.4.20 Vodafone Group Plc
    • 6.4.21 AT&T Inc.
    • 6.4.22 Tata Consultancy Services Limited
    • 6.4.23 Infosys Limited

7. MARKET OPPORTUNITIES AND FUTURE OUTLOOK

  • 7.1 White-space and Unmet-need Assessment
**Subject to Availability
***In the final report, Asia, Australia, and New Zealand will be studied together as 'Asia Pacific'
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Global IoT In Banking And Financial Services Market Report Scope

The IoT in Banking and Financial Services market encompasses the use of connected devices and real-time data analytics to enhance security, improve customer experience, and streamline operations. Key applications include fraud detection, payment processing, risk management, and personalized financial services. The market is driven by advancements in AI, blockchain, and regulatory compliance, fostering innovative solutions for digital transformation in financial institutions.

The IoT In Banking And Financial Services Market is segmented by offering (hardware, software, services), connectivity (wired, wireless), deployment (cloud, on-premise), application (payment and transaction security, customer experience management, data management and analytics, fraud detection and prevention, risk and compliance management), end user (banks, insurance companies, investment firms, other end users), and geography (North America, Europe, Asia Pacific, Latin America, Middle East and Africa). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.

By Offering Hardware
Software
Services
By Connectivity Wired Ethernet
Fiber
Wireless Wi-Fi
Bluetooth
Zigbee
Cellular (4G/5G)
NFC
By Deployment Cloud
On-Premise
By Application Payment and Transaction Security
Customer Experience Management
Data Management and Analytics
Fraud Detection and Prevention
Risk and Compliance Management
Asset and Equipment Monitoring (Smart ATM and Branch)
Smart Insurance and Telematics
By End User Banks
Insurance Companies
Investment Firms
FinTech Companies
Credit Unions
Payment Processors and Card Networks
By Geography North America United States
Canada
Mexico
South America Brazil
Argentina
Rest of South America
Europe United Kingdom
Germany
France
Italy
Spain
Nordics
Rest of Europe
Middle East and Africa Middle East Saudi Arabia
United Arab Emirates
Turkey
Rest of Middle East
Africa South Africa
Egypt
Nigeria
Rest of Africa
Asia-Pacific China
India
Japan
South Korea
ASEAN
Australia
New Zealand
Rest of Asia-Pacific
By Offering
Hardware
Software
Services
By Connectivity
Wired Ethernet
Fiber
Wireless Wi-Fi
Bluetooth
Zigbee
Cellular (4G/5G)
NFC
By Deployment
Cloud
On-Premise
By Application
Payment and Transaction Security
Customer Experience Management
Data Management and Analytics
Fraud Detection and Prevention
Risk and Compliance Management
Asset and Equipment Monitoring (Smart ATM and Branch)
Smart Insurance and Telematics
By End User
Banks
Insurance Companies
Investment Firms
FinTech Companies
Credit Unions
Payment Processors and Card Networks
By Geography
North America United States
Canada
Mexico
South America Brazil
Argentina
Rest of South America
Europe United Kingdom
Germany
France
Italy
Spain
Nordics
Rest of Europe
Middle East and Africa Middle East Saudi Arabia
United Arab Emirates
Turkey
Rest of Middle East
Africa South Africa
Egypt
Nigeria
Rest of Africa
Asia-Pacific China
India
Japan
South Korea
ASEAN
Australia
New Zealand
Rest of Asia-Pacific
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Key Questions Answered in the Report

What is the current size of the IoT in Banking and Financial Services market?

The market is valued at USD 61.23 billion in 2025.

How fast will the IoT in Banking and Financial Services market grow?

It is projected to post a 12.21% CAGR, reaching USD 108.92 billion by 2030.

Which region is expanding the fastest?

Asia-Pacific is on track for a 28.31% CAGR through 2030, driven by mobile-first banking ecosystems.

Why do services dominate spending over hardware?

Institutions need integration, compliance, and support expertise; thus services captured 47.8% market share in 2024 and will rise at 43% CAGR.

What connectivity option leads deployments?

Wireless solutions held 63.9% share in 2024 because 5G and Wi-Fi 6 deliver flexible, low-latency networking suited to branch and ATM upgrades.

Page last updated on: June 18, 2025

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