With 5G, mobile banking will start to function more efficiently and smoothly, eventually boosting mobile banking performance and overall customer experience.
FREMONT, CA: Financial institutions are in the midst of going mobile, with many of their legacy operations opting to work more closely with technology to upgrade services, and retain and acquire customers. The debut of 5G technology is almost here to add another tool that can aid banking innovation efforts. As mobile technology gets closer to the mainstream, the potentials of 5G for mobile banking is gaining clarity. With the mobile trend continuing to accelerate and customers actively seeking new services to match evolving technologies, 5G is becoming paramount for banks. Read on to know what 5G has in store for mobile banking.
• More Accurate Fraud Prevention
5G can remove performance hiccups with transactions made through mobile devices. Because 5G permits more data to travel across networks, it will improve fraud prevention. From the moment a customer initiates a mobile transaction, banks will be able to more rapidly comb through information like geolocation, transaction amount, and even the merchant ID to reduce fraud detection errors. As a result, fewer legitimate transactions will be wrongly declined, suspecting fraud. In return, banks gain the advantage of fewer unsatisfied customers who stop using bank services due to fraud prevention errors.
• Enhanced Security
If security vulnerabilities are detected within a mobile banking app, notifications are required, including manual intervention from the mobile app user. With 5G, banks can update and add enhancements in real-time, without bugging the customer. The arrival of 5G will also promote increased use of multimodal biometric security measures that combine the customer’s position in which he/she holds the mobile device to make payment to validate the user’s identity.
• Personalized Services
Financial institutions have already begun to provide customized products and services to their customers, and 5G will eventually help improve this. By combining 5G with artificial intelligence, banks could better harness the real-time data coming from mobile devices used for banking to predict customer preferences and behaviors. With this, people can make more accurate lending decisions, get better banking recommendations, and highly personalized advice from digital banking assistants. Additionally, customers could summon AI assistants anywhere, anytime for consultations over high-resolution video.
• Better App Performance
With 5G, banks can stream a banking app experience over the internet without requiring the customer to download the app. This could open up several opportunities for customers. 5G will also allow the mobile app to keep less data on the device because there is almost no cost for transporting data from the cloud to the device in a 5G environment. This will also help create a much lighter mobile banking app on the devices, which is more responsive. 5G will also solve the performance drop problem that arises when many people use smartphones at the same time. 5G network will allow millions of connections to a network, which can eliminate performance issues.
• Zero Waiting Time
When it comes to banking, the main appeal of 5G is not speed but ultra-low latency, with its latency set to reduce from 50 milliseconds to less than one millisecond. So, 5G will bring a lightning-fast, real-time mobile banking experience to users when they do banking and payment transactions. Essentially, this zero waiting time will also bring benefits for third party apps accessing banks’ databases to make transactions. The latency of 5G also seems to promote further use in payments, mobile banking, and other digital financial services.
Owing to its speed, zero network latency, and higher bandwidth, 5G technology will prove to be a game-changer in the mobile banking arena. Not only it will open up new doors of possibilities for banks to improve their mobile banking service but emerge as a blessing for users in terms of enhanced user experience as well. Banks need to be prepared and have use cases lined up as 5G rolls out.