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Explore the latest trends and actionable insights on the Internet of Things market to inform business strategy and pinpoint opportunities and risks

Market Size of IoT (Internet of Things) in Retail Banking (2019 - 2021, $ Billion)

Industry: Retail Banking and Lending
Current: Thematic Indicators

The global market size of IoT in retail banking grew at a CAGR of 9.5%
Retail banks extensively employ beacon technology to enhance the customer experience
Banking on wearable devices and contactless payment solutions drive the global IoT retail banking market

The retail banking industry employs Internet of Things (IoT) to offer customers personalized, frictionless, and contactless banking. For example, when customers enter a car lot or a retail park, a bank could notify them of how much money they can borrow and at what rate. Smart ATMs (an application of IoT in retail banking) reduce costs for banks by reducing the number of employees needed for cash withdrawal.

The retail banks provide compelling solutions that show they are unique as they strive to offer a one-stop-shop solution to their customers. Banking on wearables, fewer instances of fraud, contactless payment solutions, and smart contracts drive the global IoT retail banking market. The global market size of IoT in retail banking grew at a CAGR of 9.5% between 2019 and 2021.

IoT in retail banking improves account accessibility, enables better customer asset control, and automates banking processes. Few banks have positively impacted the IoT demand in retail banking by implementing contactless payment solutions, which are wearable devices that enable contactless transactions.

Another important application of IoT in banking is the use of Beacon technology to acquire new customers and enhance the experience of existing customers. The Beacon technology syncs signals of a bank server with a bank application; this way, the signals recognize the customers when they are around the banks.

Companies using IoT

Below are a few examples of retailers deploying IoT technology to gain a competitive advantage.

Capital One: Capital One encourages its customers to pay their bills through smart assistants like Alexa.
Bank of America: The bank has extended contactless payment capabilities to numerous devices, providing customers with more payment options. The bank ensures that the manufacturers of IoT and wearable devices add contactless payment capabilities to the bank’s product
Mastercard: Similarly, Paypass, a contactless payment solution by Mastercard, enables seamless money transactions across the world.

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