bankingciooutlook

How 5G Empowers Banking

By: Banking CIO Outlook | Wednesday, June 10, 2020

The proliferation of 5G in banking will enhance banks’ operational as well as customer-centric aspects significantly. 

FREMONT, CA: When we talk about 5G, much of our focus is instantly shifted towards high-speed connectivity with lightning-fast downloads and minimal or no lags during the video chats. While the above description may not be incorrect, it influences the potential of 5G in banking. The emergence of the high-speed, real-time data flow will enable the financial institutions to streamline many of their complex internal processes. Further, 5G capability will also enable the banks to enhance their customer experience services with improved service speeds and reduced time to process requests.

With increased speed and capacity, 5G will allow the banks to invest efficiently in innovative tools and technologies such as artificial intelligence (AI). A mix

 of technology and speed will enable financial institutions to run several parallel processes in real-time. Further, 5G capability will also improve the accuracy and speed concerning lending decisions, thereby allowing the banks to match individual applicant’s reality. The incorporation of 5G technology into the financial sector will further power digital banking and discourage people from using a physical wallet. The technology will establish a high degree of uniformity and security between user’s phones, wearable and may even extend to their connected car, allowing the customers to rely entirely on digital payments.

The emergence of 5G will also encourage edge computing among financial institutions. Edge networking capability can significantly offset network latency, bringing information and services closer to the users. The reduced network latency will reduce cloud workload and facilitate real-time analysis in banking. 5G driven edge computing will also account for improved customer experience. Faster and accurate delivery of services will also mean shorter queues in banks.

Financial institutions realize the essence of 5G technology and are already making an effort to incorporate technology to enhance the capability of legacy systems.

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