Finance and the 5G Technology
Introduction
There is possibly no doubt that the financial services industry has often been an early adaptor of the rising technologies. Take for example ATMs and mobile banking; the financial sector has always been a pro when it comes to adopting new technology for improving customer experiences.
As per a recent research data by AT&T and IDG, 81% of all the global financial institutions have made technological changes at the corporate and the branch level in the most recent years.
As talked about a lot earlier - Technology remains the number one tool for the banks, other financial institutions (FIs) and the FinTechs - for improving widespread customer experience, thus expanding their business in the financial market.
And thus, with the ever-growing mobile usage and the need of the customers to seek new and improved quality services to match the evolving technologies in their pockets or on their wrists, the banks, and financial institutions are coming at par to incorporating unprecedented services.
As a result, a new way has been found to overcome issues and customer service resolution on a wide scale - The 5G technology, which is surely poised to help banks and other finance companies to deliver the new and innovative mobile services their consumers want. Let us discover what’s in store for us and the banks with the upcoming 5G technology.
Also, Stay updated with BankQuality to receive the information on the latest happenings in the financial services industry. Through these blogs, you can enlighten yourself with the simplest yet very pivotal things that you would keep in mind while choosing to engage with any financial institution or any financial service. Register Now on BankQuality!
Transforming the Global Network
It is no doubt that the next generation of mobile connectivity, which is 5G, is expected to break revolutionary bounds in the development of mobile internet connectivity after it comes online on a much needed global scale. The 5G is expected to promise Industry professionals and customers alike with unprecedented speed, better connectivity, low latency and the ability to carry enormous connections simultaneously.
Not much of a surprise, but 5G has made equally sound promises of blessing the financial Industry with its many advantages. For instance, it will now allow the financial services sector to launch new products and services that were previously not possible due to the limitation of technology – to increase their productivity. , But it is safe to say that 5G is the new age of technology, as unlike other connections such as 4G and LTE, the uses of 5G are not just limited to merely mobile phones, but also extend to be transformative for many other applications as well.
Given that in this modern era, we have digital voice assistant sensors installed in everything from our mobile phones to household appliances to cars and what not and hence, 5G will power the Internet of things (IoT) and will enable the digital structure to carry tremendous amounts of data in a jiffy, thus, allowing for a more smarter, and a connected world and even the financial market!
According to Gartner, the world’s leading research and advisory company, there will be approximately 20.4 billion connected devices globally by 2020. Apart from this, the start of the new decade will see some of the never-seen-before revolutionary changes in the mobile network and internet technology.
This revolutionary technology indeed has significant economic benefits. The rollout of the 5G technology is said to create three million jobs and generate a total of about $550 billion in economic growth alone in the US in another four years.
Revolutionizing the Financial Services Industry
Though the cost of implementation of the 5G technology is exponentially high (approx. $5.7 trillion), it is expected to be a catalyst for change and growth in a variety of industries, but most prominently, the financial services industry.
The introduction of 5G is bound to motivate and encourage the banks and other FIs to significantly reform their ways of using technology for internal operations and customer experience alike. While many financial institutions have started to embrace the new technology, others are still wrestling to figure out how to become more mobile-friendly and tech-savvy for their users. The introduction of 5G somewhat compels the banks to change their existing mode of operations. For instance, familiar banking operations like payment services are sure to attain new forms extending to new channels which include 5G smartphones, smart wearable devices such as Apple watches, IoT devices, and even virtual reality.
Another example of a technology that will be facilitated by 5G is the remote teller – which would enable the bank customers to get personalized attention to their problems via a video call without necessarily taking out their time to travel and visit their near branch.
The wearables are another promising aspect of the banks with the advent of 5G in the financial services industry. if one is a aren’t a follower of mobile technology, they might be aware that wearable has already become an important channel for mobile payments and are likely to increase more with the introduction of 5G.
Anyway, in the past, the wearables weren’t used to their full potential as they relied on local authentication using the biometric data (fingerprints and face locks) to be accessible every time. But now, what is more, promising is that the wearables, by connecting to the cloud using the 5G technology, would help in sharing that data with banks and even with each other, now with even more reliability and with the lowest latency ever see before!
So once this is implemented, ideally, the banks and other financial institutions would no longer need to rely on just limited numbers of biometric authentication.
Changing the entire system of data collection and wealth management
5G comes equipped with a low latency bandwidth, which offers a real-time information gathering and delivery of data which ranges from location to payment information, thus paving the way for a new AI-based personal banking service. Like mentioned before talking about artificial Intelligence in the FI Industry, such AI-based integrated services would enable the banks to aggregate a user’s behavioral data in real-time to create context-aware financial recommendations. Thus, 5G’s ability to collect a mass stream of data from the customers will help banks to do more than just protect their accounts.
Conclusion
According to a recent report, ‘The 5G technology will influence everything we do.’ This has become true even for the FI Industry, where due to which; everything in the financial sector is bound to experience improvement. For example, the customer services and experience have been upended and the use of AI, which is still in its early phases of infancy, is also likely to become more ubiquitous.
This will lead the financial institutions to embrace the Artificial Technology that 5G brings along with it, amongst other technologies to improve the banking and financial services for the consumers by improving both speed and security.
Bankquality.com is a dedicated platform to bring you the best there is to know about the financial market, from understanding banks, digital wallets, investments to securities and 5G technology, we cover all the essential topics there are to cover about finance. Click here and join our community TODAY!