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August 12, 2021updated 23 Mar 2022 12:24pm

Is the banking & payments sector seeing the beginnings of an internet of things investment boom?

By Data Journalism Team

The banking & payments industry is seeing changes in internet of things investment across several key metrics, according to an analysis of GlobalData figures.

Internet of things is one of the key themes across global industries, with top companies around the world completing internet of things deals, hiring for internet of things roles and mentioning it in company reports at the start of 2021.

GlobalData’s thematic approach to sector activity seeks to group key company information on hiring, deals, patents and more by topic to see which industries are best placed to weather the disruptions coming their way.

These themes, of which internet of things is one, are best thought of as “any issue that keeps a CEO awake at night”, and by tracking them, it becomes possible to ascertain which companies are leading the way on specific issues and which are dragging their heels.

One area in which there has been a decrease in internet of things investment among banking & payments companies is in the number of deals. GlobalData figures show that there were 24 internet of things deals in banking & payments in the second quarter of 2019. By the second quarter of 2021, that number was 15.

Hiring patterns within the banking & payments sector as a whole are pointing towards an increase in the level of attention being shown to roles related to internet of things. There were 1,556 actively advertised-for open banking & payments roles within the industry in the second quarter of this year, up from 504 in the same quarter last year.

It is also apparent from an analysis of keyword mentions in financial filings that internet of things is occupying the minds of banking & payments companies to a lesser extent.

Internet of things was mentioned in 49 company reports of the biggest banking & payments companies in Q2 2021. This figure represents a decrease compared to the same period in 2019, when 202 industry filings mentioned internet of things.

Internet of things is decreasingly fueling innovation in the banking & payments sector. There were, on average, 284 banking & payments patents related to internet of things granted in the second quarter of 2019. That figure has fallen to 97 patents in the last quarter of 2020.

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