The Internet of Financial Things: What Banking and Insurance Industry Marketers Need to Know Now - eMarketer
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The Internet of Financial Things: What Banking and Insurance Industry Marketers Need to Know Now

eMarketer Report

By: eMarketer

Published: March 24, 2016

Jump to: Executive Summary | Table of Contents | List of Charts

Executive Summary

Though the internet of things (IoT) is still in its early stages, it has significant potential for the financial services sector. By building on early success with mobile technology, banks, insurers, payments companies and other financial firms are experimenting with ways to streamline their operations, reduce risk and create more valuable experiences for their customers.

  • Larger financial institutions are under increased pressure from smaller and more nimble financial technology firms. They are turning to IoT technologies to help stay competitive and profitable.
  • By one estimate, average IoT per-company spending in 2018 will reach $153.5 million for banks and $102.9 million for insurers.
  • Mobile devices play a key role in the financial IoT. The majority of customer-facing initiatives currently involve smartphone, tablet and smart watch apps.
  • The IoT is giving industry marketers more ways to communicate with target audiences, more data to target personalized messaging, valuable feedback about what they are doing right and more ways to enhance their customers’ experiences.
  • Obstacles to wider IoT adoption include concerns over security and privacy, regulatory and compliance issues, data fluency and a lack of common standards.

"Mobile apps are the primary way financial services companies use the IoT. The industry also uses IoT sensors to and track products and services."

Table of Contents

What Is the Financial IoT?

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Implications for Marketers

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Overcoming Challenges: Finding the Right Balance

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17 charts are included in the full report:

The Internet of Financial Things: What Banking and Insurance Industry Marketers Need to Know Now

Ways in Which Their Company Uses Internet of Things (IoT) Technologies According to Insurance vs. Banking/Financial Services Executives Worldwide, April 2015 (% of respondents)

What Is the Financial IoT?

Current vs. Expected Internet of Things (IoT) Budget According to Business Executives Worldwide, by Industry, 2015 & 2018 (millions)

Primary Attitude Toward the Internet of Things (IoT) Among IoT Decision-Makers Worldwide, by Industry, Aug 2015 (% of respondents)

Importance of Select Disruptive Technologies According to Banks Worldwide, Aug 2015 (% of respondents)

The Financial IoT in Action

Ways in Which Their Company Uses Internet of Things (IoT) Technologies According to Insurance vs. Banking/Financial Services Executives Worldwide, April 2015 (% of respondents)

Primary Barrier to Internet of Things (IoT) Technology Adoption at Insurance Companies According to Insurers Worldwide, Dec 2015 (% of respondents)

Internet of Things (IoT) Spending Share According to Banking/Financial Services vs. Insurance Executives Worldwide, by Business Area, April 2015 (% of total)

Primary Area in Which Using Internet of Things (IoT) Technology Could Benefit Their Business According to Insurers Worldwide, Dec 2015 (% of respondents)

Implications for Marketers

Department that Has the Most to Gain from Internet of Things (IoT) Technology According to Insurers Worldwide, Dec 2015 (% of respondents)

Better Data = Deeper Levels of Insight

Data Sources Used to Inform Customer-Related Decisions According to Financial Services and Telecom Decision-Makers in EMEA, Nov 2014 (% of respondents)

US Bank and Credit Union Marketing Analytics and Customer Data Spending, 2012-2017 (billions)

Biggest Opportunities for Insurance Organizations According to Insurance Executives Worldwide, April 2015 (% of respondents)

Streamlined Product Development and Delivery

US Internet Users Who Have Changed the Way They Drive due to Telematics Devices, June 2015 (% of respondents)

Overcoming Challenges: Finding the Right Balance

Barriers to Internet of Things (IoT) Growth According to Business Executives Worldwide, Jan 2016 (% of respondents)

Internet Users in North America Who Are Comfortable with Companies Handling Their Personal Data, by Industry, Feb 2015 (% of respondents)

UK Insurance Holders Who Would Share Their Information with Insurers for a More Accurate Premium, by Type, April 2015 (% of total in each group)

The Data Fluency Gap

Strategic Challenges of Big Data and Analytics According to Senior Data/IT Decision-Makers Worldwide, Spring 2015 (% of respondents)