Benefits of 5G in banking and financial services

Benefits of 5G in Banking and financial service

5G is finally becoming a reality in many places around the world.

Not Just Another “G” While the transitions from 2G to 3G and 3G to 4G were largely driven by consumer demand for capable mobile data services, the transition from 4G to 5G is a response to enterprise functionality demands that extend beyond broadband access to the internet. Due to more stringent requirements by enterprises, 5G promises faster speeds, reduced latency and increased scalability when compared with its predecessors. To illustrate, the peak speed of 4G is ~1Gbps, the theoretical peek speed of 5G once it’s fully deployed could be as high as 20Gbps. ??

5G, the high-speed network technology, following various benefits in banking and financial service.

With the help of low latency, high reliability and greater throughput, 5G is going to create demand and opportunities through platforms such as Internet of Things (IoT), ?Digital banking, virtual reality (AR/VR) and robotics

Digital transformation is happening in a big way and banks are leveraging technologies such as AI, RPA, APIs to meet and beat the expectations, and demands of consumers.

5G, the high-speed network technology not only presents solution to the problem but also ushers banking to an era of new possibilities. With Edge computing, data is processed in real-time at the point of generation, and the 5G network plays a crucial role in accelerating the process.

In banking/fintech domain, there are millions of transactions happening every second. Banks are sitting on huge piles of data. With use of latest microservice architecture and predictive customer experience and instant offering of various complex service in real time. ?Hence, Banks are looking at a future where they can provide highly customized and immersive services to their customers. Personalized products can be offered to customers based on the real-time analysis of data generated on their phones and tablets.

A. Personalized Service - Digital banking experience with speed

Payments will be simpler and faster, fueling further adoption of digital payments by customers and merchants. Transactions won’t be slowed down due to lack of bandwidth or heavy traffic on the bank’s channels. Additionally, banks may look to create a more connected omni-channel experience by extending services to wearables, smart IOT in turn leading to the creation of more personalized services.

B. 5G Application in financial services Digital banking, authentication and security, insurance and investments, community banking, and operations

C.?Banks will send you more hyper-personalized offers and advice

Thanks to?5G’s immaculate data transfer capabilities, banks will be able to deploy AI and machine learning to shift through ever-increasing consumer data, both behavioural and financial, made available through an increasing number of connected devices with transactional capabilities. This will allow banks to target consumers with hyper-contextualized advice and better product and loan recommendations.

D.?The AI enable Customer Service ( AI Bots )

The future of 5G helps customer services for banks will no longer simply have human customer care personnel on the other end of the line. With use of 5G networks, video consultations with financial representatives via video calls will become the norm. Issues will be instantly resolved thanks to AI and machine learning equipped customer ‘bots’, making the whole process automated, time-efficient and highly personalized.

E.?Self Service Intelligent Multifunction banking kiosk

Through?5G, banks will now have the means to expand their footprint and reach without building any physical branches. Portable, pop-up mobile branches that provide a completely authentic banking experience through wearable device, etc. will be a boon for remote locations. 5G-enabled self-serving banking kiosks that provide instantaneous support from main branches can be set up at events such as music festivals, or in a disaster-affected area where banking services have taken a hit.

F.?AI equipped banking tools - ?help instant purchases – Loan, Buying a home/car

At the end of,?5G’s next-gen communication network?means high-speed, real-time data flow. This will enable financial institutions to streamline time-consuming, multi-step, big-ticket purchases such as securing a loan or buying a home/car, making them almost instantaneous! AI-equipped banking tools will emerge that comb through personal data to optimize offers and interest rates for each applicant.?

G.?Improve Fraud prevention

By supporting more data traveling between parties in real time, 5G enables better utilization of diverse data inputs for fraud screening. This should help financial institutions and retailers implement more robust data-driven risk scoring models that reduce false positive declines while minimizing chargebacks.

H. 5G enable speed in financial inclusion

The future of?5G in banking will empower much-needed financial inclusion for rural and remote populations across the world. While not everyone has access to a physical bank, everyone certainly will have a smart device powered by 5G in the coming decade. This will give banks an unprecedented opportunity to reach out to more customers through a seamless, simplified digital banking interface – either through phones, laptops or kiosks. 5G will also enable real-time translation so that everyone can enjoy innovative financial applications natively.

I. Enhance mPOS transactions and utilization.

5G holds potential to accelerate mobile point of sale (mPOS) transaction processing time and improve connectivity. This could further drive adoption of mPOS into new geographies, locations, and use cases where network connections have been unavailable or too slow.

?It’s been a long time since banks overhauled their systems and processes to match rising customer expectations and advancements in next-gen communication networks. As 5G begins to go mainstream worldwide in the coming years, banks must be ready to grasp an opportunity to transform the industry forever. So far, the signs indeed look promising.

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