Banks Should Prepare For The Internet Of Things

It is widely acknowledged that the Internet of Things (IoT) will have a huge impact on nearly every industry, and financial services is no exception. Gartner estimates that connected devices will reach an installed base of 25 billion units by 2020, with an annual compound growth rate of 35.2 percent from 2013-2020. Insurers are already exploring how the IoT will transform the insurance industry through improved customer dialogue, more precise price models and faster settlements. This is achieved through real-time monitoring, collection and analysis of behavioral data for both P&C and life insurance. This creates many opportunities for incumbents, as well as threats from new entrants.