| Study Period | 2019 - 2030 |
| Market Size (2025) | USD 61.23 Billion |
| Market Size (2030) | USD 108.92 Billion |
| CAGR (2025 - 2030) | 12.21 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Low |
Major Players*Disclaimer: Major Players sorted in no particular order |
IoT In Banking And Financial Services Market Analysis
The IoT In Banking And Financial Services Market size is estimated at USD 61.23 billion in 2025, and is expected to reach USD 108.92 billion by 2030, at a CAGR of 12.21% during the forecast period (2025-2030).
- The Internet of Things (IoT) in banking and financial services is transforming the way financial institutions operate and engage with customers. IoT devices, such as smart ATMs, wearables, and connected payment systems, are streamlining banking operations and enhancing customer experiences by providing real-time data and more personalized services. Financial institutions are increasingly using IoT to improve security, optimize operational efficiency, and develop innovative financial products.
- One of the primary trends in this market is the integration of IoT with advanced analytics and AI. By leveraging data from connected devices, banks and financial institutions can gain deeper insights into customer behavior, preferences, and spending patterns. This enables the creation of more tailored financial products, services, and personalized recommendations. The ability to process vast amounts of real-time data allows for improved decision-making and predictive analytics in areas such as credit scoring, fraud detection, and risk management.
- Additionally, IoT is enhancing the security of financial transactions and preventing fraud. Connected devices can offer enhanced authentication methods, such as biometric recognition via wearables or smart cards, which provide a higher level of security. Banks are also using IoT to monitor and control access to physical assets, such as vaults and secure areas, through smart sensors and surveillance systems, reducing the risk of physical breaches.
- Another significant development in the market is the increasing use of IoT for seamless payments. Wearable devices, smartphones, and connected cards are enabling contactless payments, making transactions faster and more convenient for customers. The proliferation of IoT in payment systems has been further accelerated by the global shift towards digital and mobile banking, especially amid the ongoing demand for contactless and remote banking solutions during the COVID-19 pandemic.
- Finally, IoT is playing a key role in improving operational efficiency within financial institutions. Smart branches and automated processes are reducing costs and improving service delivery. IoT devices allow for real-time monitoring of cash levels in ATMs, predictive maintenance of banking infrastructure, and optimization of customer service through automated chatbots and digital assistants. As the IoT ecosystem continues to evolve, banks and financial institutions are expected to further integrate these technologies to offer more innovative services, enhance security, and create value for customers.
IoT In Banking And Financial Services Market Trends
Fraud Detection and Prevention Accounts For Significant Share
- Fraud detection and prevention hold a major share in the IoT-driven banking and financial services market due to the increasing sophistication of cyber threats and the growing adoption of digital and contactless payment systems. The rapid digital transformation in financial institutions has expanded attack surfaces, making fraud detection critical to protecting customer data, financial assets, and institutional reputation. IoT-enabled systems use real-time data collection and machine learning algorithms to monitor, detect, and mitigate fraudulent activities across multiple touchpoints, including online transactions, ATM withdrawals, and point-of-sale systems.
- The dominance of fraud detection and prevention is driven by advancements in predictive analytics, biometric authentication, and IoT-integrated devices that allow for continuous monitoring. IoT sensors and smart devices contribute to risk assessment by providing contextual data such as geolocation, device ID, and behavioral patterns, enabling banks to detect anomalies in transaction behavior. This application also benefits from blockchain technology, which secures transaction data and enhances trust through decentralized validation mechanisms.
- Key technologies powering fraud detection solutions include artificial intelligence (AI), deep learning, and behavioral analytics, which work together to identify unusual patterns and alert financial institutions in real-time. By leveraging IoT, these solutions provide dynamic fraud scoring models that improve accuracy compared to traditional rule-based systems. This shift has led to reduced false positives and more efficient fraud investigation processes, enhancing overall security without compromising user experience.
- Several major companies are advancing fraud detection and prevention through IoT solutions. IBM Corporation offers Watson Financial Services, which uses AI-driven analytics for fraud management. Microsoft Corporation provides fraud detection through its Azure AI and IoT platform, combining behavioral analytics and device tracking. Cisco Systems, Inc. focuses on IoT security solutions that integrate with banking networks to safeguard data transmission. Oracle Corporation’s Financial Services delivers anti-fraud solutions powered by IoT data aggregation and predictive analytics. These companies, along with Infosys and Accenture, continuously innovate to stay ahead of evolving cyber threats.
- As of 2023, 82% of China’s leading fintech enterprises integrated artificial intelligence (AI) into their products, enhancing personalized financial advisory through robo-advisors and tailoring insurance policies in Insurtech. In contrast, only 11% leveraged IoT, highlighting a growing but underutilized potential for IoT in banking and financial services. Combining IoT with AI can revolutionize real-time data monitoring, fraud detection, and customer experience, driving future innovation in the sector.
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North America Accounts For Major Share
- North America leads the global IoT in the banking and financial services market due to its robust technological infrastructure, widespread adoption of advanced security solutions, and the presence of key financial institutions driving innovation. The region’s early adoption of IoT technologies has given rise to sophisticated banking systems that leverage IoT for fraud detection, enhanced customer experience, and data-driven decision-making. The United States, in particular, contributes significantly to this dominance, as it houses major financial institutions and technology companies focused on digital transformation.
- A key trend driving the dominance of North America is the integration of IoT with artificial intelligence (AI) and machine learning (ML) to strengthen fraud detection and risk management. Financial institutions are increasingly adopting biometric authentication, IoT-enabled payment systems, and smart ATMs to enhance security and customer convenience. Additionally, the proliferation of connected devices and wearables in the region has opened new opportunities for personalized financial services, where customer behavior and preferences are analyzed to offer tailored banking solutions.
- The emphasis on cybersecurity and regulatory compliance in North America further strengthens its position. Institutions must adhere to stringent regulations such as the Gramm-Leach-Bliley Act (GLBA) and the Payment Card Industry Data Security Standard (PCI DSS), prompting significant investments in IoT-based risk management tools. This regulatory environment fosters continuous innovation in IoT solutions aimed at preventing data breaches and financial crimes.
- Several major players dominate the IoT landscape in North America’s financial sector. IBM Corporation provides IoT-powered fraud detection and financial risk management solutions through IBM Watson. Microsoft Corporation offers IoT services integrated with its Azure platform, enabling banks to build connected, secure ecosystems. Cisco Systems, Inc. delivers IoT networking solutions focused on enhancing data security in financial transactions. Additionally, Intel Corporation and Oracle Corporation contribute with IoT analytics and scalable platforms that support data aggregation and fraud detection. Emerging fintech companies also play a critical role, leveraging IoT to create innovative mobile payment systems and blockchain-based security solutions.
- Furthermore, IoT adoption in North America’s financial services sector is expected to grow with increased investment in 5G technology, blockchain integration, and real-time analytics platforms. Banks and financial institutions are focused on creating seamless, connected experiences while ensuring security and compliance. The continued evolution of IoT-driven solutions in fraud prevention, risk management, and customer engagement will further cement North America’s leadership in this market.
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IoT In Banking And Financial Services Industry Overview
The IoT in Banking and Financial Services market is highly fragmented, featuring key players such as IBM Corporation, Microsoft Corporation, Cisco Systems, Inc., Oracle Corporation, and SAP SE. Competition is driven by continuous innovation in AI-powered fraud detection, blockchain integration, and IoT-enabled customer engagement platforms.
Market leaders are focused on expanding cloud-based IoT solutions and enhancing cybersecurity capabilities to meet growing regulatory demands. Emerging startups are increasingly challenging established players with specialized, agile solutions in niche areas such as biometric payments and connected ATM networks. Strategic partnerships and acquisitions are shaping the competitive landscape as companies strive to strengthen their market position and offer end-to-end IoT ecosystems.
IoT In Banking And Financial Services Market Leaders
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IBM Corporation
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Microsoft Corporation
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Cisco Systems, Inc.
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Oracle Corporation
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SAP SE
- *Disclaimer: Major Players sorted in no particular order
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IoT In Banking And Financial Services Market News
- December 2024: Diebold Nixdorf has made history as the inaugural ATM solution provider to roll out Microsoft Windows 11 IoT Enterprise LTSC 2024 operating system in active settings. BS/2 spearheaded the implementation, collaborating with two Central Asian banking partners: Eurasian Bank and Kapital Bank. This upgrade not only bolsters security and speed but also enhances usability, guaranteeing adherence to regulations and ensuring platform stability until October 2034. The solution seamlessly integrates with Diebold's DN Series ATMs, Vynamic Connection Points 7, and the Vynamic Transaction Middleware software.
- November 2023: In a recent move, Financial Software & Systems Pvt Ltd (FSS), a prominent global player in payment technology solutions, unveiled its IoT and AI/ML-enabled ATMs in India.
IoT In Banking And Financial Services Industry Segmentation
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 |
| Wireless | |
| 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 | |
| By End User | Banks |
| Insurance Companies | |
| Investment Firms | |
| Other End Users | |
| By Geography*** | North America |
| Europe | |
| Asia | |
| Australia and New Zealand | |
| Latin America | |
| Middle East and Africa |
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IoT In Banking And Financial Services Market Research FAQs
How big is the IoT In Banking And Financial Services Market?
The IoT In Banking And Financial Services Market size is expected to reach USD 61.23 billion in 2025 and grow at a CAGR of 12.21% to reach USD 108.92 billion by 2030.
What is the current IoT In Banking And Financial Services Market size?
In 2025, the IoT In Banking And Financial Services Market size is expected to reach USD 61.23 billion.
Who are the key players in IoT In Banking And Financial Services Market?
IBM Corporation, Microsoft Corporation, Cisco Systems, Inc., Oracle Corporation and SAP SE are the major companies operating in the IoT In Banking And Financial Services Market.
Which is the fastest growing region in IoT In Banking And Financial Services Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2025-2030).
Which region has the biggest share in IoT In Banking And Financial Services Market?
In 2025, the North America accounts for the largest market share in IoT In Banking And Financial Services Market.
What years does this IoT In Banking And Financial Services Market cover, and what was the market size in 2024?
In 2024, the IoT In Banking And Financial Services Market size was estimated at USD 53.75 billion. The report covers the IoT In Banking And Financial Services Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the IoT In Banking And Financial Services Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
IoT In Banking And Financial Services Industry Report
Statistics for the 2025 IoT In Banking And Financial Services market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. IoT In Banking And Financial Services analysis includes a market forecast outlook for 2025 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.
