5G (5th generation mobile network) is creating a lot of buzz in multiple sectors. A GSMA report estimated that by 2025, there would be 1.35 billion 5G connections around the world. With features like 10gbps data rate, one-millisecond latency, and 99.99% availability, companies predict that 5G rollout is going to be a huge success.
One of the sectors that is highly affected by the advent of 5G is banking. Research suggests that 5G will improve many components of banking, such as mobile apps, digital deposits, and smartphone credit card systems. Due to its benefits such as high speed, low latency, and improved connectivity, it’s supposed to significantly improve existing banking services. Let’s have a look at how 5G will affect the way you bank.
Improved mobile banking
5G will improve the performance of your app by reducing latency and load times issues. 5G is backward compatible, i.e., the application will be compatible with more phones than those with 4G or 3G. Due to a higher data transfer rate, it’ll allow you to transfer large amounts of money instantly. You can also use IoT devices (wearables) to do transactions over 5G.
In 5G, since the data transfer is no longer an issue, companies can store less data on client devices and cache. This type of processing is called edge computing. For creating such apps, most banks outsource to professional software development companies, since edge computing apps have benefits such as improved personalization, faster computing, and reduced traffic load.
Instead of data going to the cloud for processing, individual network nodes can themselves process data. Doing this will improve processing and loading time, making the whole process efficient. Also, since financial companies need to store less information on devices, they will focus more on innovation when updating their apps instead of data patching and bug fixing.
Even though some people may have security concerns for 5G, processing information through 5G is more secure than traditional processing. Since the data nodes themselves can process the data, it doesn’t have to be sent anywhere, which reduces the risk of exposure and attacks. It can also provide real-time updates as data is processed and will allow you to have fewer disruptions because of connectivity problems.
It will improve fraud detection with options such as merchant ID and geolocation that will allow you to have better security measures for customers. It will also improve the use of biometrics for identification, a process that’s called a 3D secure process (3DS2). Vendors would be able to identify transaction frauds in seconds to stop the transaction.
For mobile wallet transactions, if you need to update your application or the bank’s existing security infrastructure, you can upgrade it in real-time without disruption of service. 5G will also improve network slicing so that your data will be more secure than ever before.
Improved customer service
Customer service would improve with the implementation of 5G. Using 5G’s fast speed, banks can provide their clients with swift assistance and personalized support through chat and video calls. You can also use VR to simulate problems in real-time and solve them quickly, allowing you to train their agents and providing a hands-on experience without wasting company resources. VR can also be used to fix hardware problems, with technicians guiding agents in real-time.
Through AI, you can automate duties like identification and authentication. AI modules can also collect preliminary data for creating a detailed customer profile. You can also include services like facial recognition and biometric scanning.
Many times, people may not have a good internet connection. They might not be able to access all the features that a bank provides. 5G will change that. People in rural areas would be able to access high-speed internet to perform transactions. They would be able to take help from wealth management experts, financial and digital banking assistants, and customer service reps. The increased bandwidth means they might also invest in new services. Even if they don’t, they would still get a richer digital experience than before.
Since more people will start using banking applications, it will have a domino effect on the number of servers required to handle traffic, network infrastructure, etc. 5G connectivity will help in mitigating this problem by expanding into a new spectrum of communication called mmWave.
Customers these days are demanding better services and superior digital experiences. They want to access their accounts quickly and securely. For this, financial instructions need to take appropriate steps by investing in relevant strategies and developing new processes. That way, they can offer more services and get ahead of the customer demand for digitization.
5G does have some problems that telecom companies need to fix. It can only be broadcasted over small distances, which means you have to set up additional infrastructure. Right now, it’s coverage is defined to limited cities. Also, the device battery drains faster when running on 5G. Despite these problems, 5G will continue to grow banking businesses around the world. With its benefits in customer service and security, connectivity, you can rest assured that banking will grow at a tremendous rate with 5G backing its development.