Infosys TechCompass #57: 5G - Financial Services

5G brings faster speed, low latency, increased device density, and tighter security. It enhances customer experience, allows remote access of branches, and connects use cases from different banks. The technology enables “pop-up” branches or mini branches that host less staff while providing a full suite of functionality, including ATMs. Further, financial infrastructure can be set up quickly at disaster zones in emergencies or in remote locations that lack connectivity.

An Infosys Knowledge Institute study reveals that 5G applications in financial services have shifted from AR/VR and video analytics to prioritizing edge computing for enhanced security in banking. Edge computing brings nodes closer to customers, bolstering real-time security. Banks can now integrate facial recognition with physical characteristics for improved real-time verification, surpassing traditional biometrics.

The next phase of 5G involves implementing high-reliability, wide-coverage networks for autonomous actions, driven by end-to-end autonomy and zero-touch requirements. Banks can leverage use-case data and integrate multiple scenarios to enhance results.

TREND 1: 5G-led remote supervision of financial devices reduces cost and time to market

Testing onsite devices, like ATMs and point of sale systems, is costly and repetitive due to shipping limitations and bandwidth constraints. This leads to large onsite testing teams and delays in product launches. However, automation and 5G can revolutionize this process. 5G's speed, low latency, and edge computing improve connectivity and interaction, enabling remote testing for various actions, reducing costs, and potentially increasing productivity by 30% to 60%. It also facilitates 24/7 software upgrades and end-to-end automation.

A North American payment processor developed a robotic test automation solution for POS terminals, ATMs, teller machines, and mobile apps. The platform, integrated with client-specific and third-party tools, offers end-to-end automation. This solution is compatible with 5G adoption, cutting connectivity infrastructure costs. 5G enhances robotic arm interactions with devices, but it's still in its early stages of implementation.

TREND 2: 5G strengthens autonomous security

Testing isn't limited to devices; mobile apps for customers and employees need realistic user interaction testing. 5G, paired with quantum cryptography, enhances security for mobile banking apps and data. DGB Daegu Bank in South Korea partnered with SK Telecom to use 5G quantum cryptography for secure transactions via a mobile app. Spatial computing and 5G improve VR experiences, like Santander's virtual work café. This tech enables real-time analytics, personalized services, and drone-assisted property inspections for insurers.

An Australian financial institution engaged Infosys to develop a robotic arm for automating peripheral application testing. Inspired by Infosys Long Arm, it reduced quality costs by 66% per cycle, saving AUD260,000 annually. 5G improved the robotic arm's functionality with enhanced connectivity and response times.

Read our 5G TechCompass to know more.