The main advantage of the 5G network will be the elimination of delays in downloading, streaming, or connecting. The speed or capacity will not decrease even when a bigger population uses their mobile devices at once like in an event or a natural disaster. The deployment is dependent on government and regulators and full 5G deployment is likely to be happening by 2025.
Engineered to increase the speed and responsiveness, 5G prompts new horizons in the finance industry too. These special features of 5G technology can get utilized in the finance industry to deliver the innovative services every customer looks forward to. The low latency, high data capacity and reliability of this network will help the industry to serve its customers – virtually wherever they are.
The following are some of the prominent uses that we can look forward to with the advent of 5G technology.
Improvement in communication
Communication improvement might increase the use of mobile phones for financial transactions. Some of them are-
• Real-time video chat and consultations with the bankers will be much more feasible for the general customers or investors in the investment banking industry. They can easily communicate in their office or on a mobile device.
• It connects branches, call centers, field agents, and headquarters through video-based services for addressing any queries and requests.
• IoT and beacon connectivity help investment banking firms to deploy solutions that enable their new customers or investors to navigate through their offices and receive personalized greetings as well. It is the same with any of the finance customers in general.
• 5G network facilitates processing in the cloud rather than on a mobile phone which might eliminate the use of mobile apps in the future.
• The customers might find uniformity in speed and connection between their mobile phone, wearables, and connected car.
Improvement in technical processes
Financial institution including investment banking can make technical changes in their back-end processes to deliver a better front-end experience for their customers. Some of them are -
• Processing of data closer to the zone where it got created by enabling edge computing. Edge computing serves well for latency-sensitive applications
• Implementation of advanced AI algorithms, real-time translation, IoT-based asset management, and all at improved security
• Enable blockchain-based services like smart contracts, cross-border payments, improved digital identities, and simplified trade cycles
• The ultra-low latency of 5G connections is critical for capital market firms as it can transform automated trading and high-frequency operations
• Payment technology might surge as all devices capture biometric data. The data sharing among the devices and on the cloud will be easier through multi-layered authentication
• The speed of 5G will facilitate data transfer and payment transaction to get analyzed at the moment and therefore results in fewer false positives
Improvement in customer experience
5G-enables services would change the way finance industries serve their customers. Some of them are –
• Take customer experience to the next level by implementing Augmented Reality and Virtual Reality on smartphones
• Deploy robots capable of conversing with the customers and assist them in financial guidelines and transactions
• Implement marketing strategies like push marketing or advisory content to attract customers and retain existing customers
• Facilitate easy and secure payment through any device and reduce friction in the payment process. This increases the finance services credibility and trust
The endnote
While these highlighted uses might not happen overnight, the buzz surrounding 5G is high. It is estimated that the U.S., South Korea, China, Australia, and Japan will be the early movers. The financial service industries might take a multi-year approach to build 5G-based solutions. Moreover, they need to revisit their existing infrastructure and get equipped themselves for the upcoming 5G era.