Wireless technologies for mobile devices have played a crucial role in the evolution of the finance sector over the years. 2G technology enabled SMS communication thus making SMS banking possible. 3G and 4G technologies brought data communication on the mobile phone and opened the door for mobile banking and the Fintech revolution. Now we are standing at the doors of the 5th generation of wireless technology – 5G, which once again promises to transform the banking sector in the near future.
5G technology will be able to provide a very fast speed of data reaching up to 1.5-2 GBs / sec at the maximum capacity. This means users will experience seamless connectivity with internet services and applications on their phones.
Most of the countries worldwide have already started rolling out infrastructures for 5G and this deployment is supposed to be completed very soon in just a few years of time.
How 5G will impact Finance
Let us see what improvements and innovations we can expect to see once 5G becomes a prevalent technology worldwide.
Improved Customer Experience
One of the most visible benefits of 5G will be high-quality video calling without any lag. This can open possibilities for introducing virtual assistance to customers from remote. The customers will no longer be required to walk into the bank, they can just video call the bank customer care desk for a face to face interaction.
According to Deltec Bank, Bahamas – “Taking customer’s experience into a more futuristic zone, banks can leverage 5G speed and virtual reality or augmented reality to give customers a virtual experience that they are inside the bank, right from their home.”
Currently, FinTech companies are making apps that cater to existing data speed limitations. But 5G will help them to push their boundaries of innovation and give better services through their apps. So, we may expect more exciting features on banking apps and digital wallets in the future.
A fast data ensures that the fraudulent transactions initiated from the phone can be intercepted by the bank’s security system in a timely manner. For example, if multiple transactions for the same account are happening from different geographical locations within a few minutes of each other, 5G speed will help the bank to detect suspicious transactions fast and stop it.
5G will also help to make biometric securities more prevalent for authenticating transactions. For example, instead of sending OTP on phone for 2 FA authentication, banks can approve transactions just by face or fingerprint scan which will be more seamless due to 5G speed. It is needless to say that such biometric scans will also be helpful for implementing security in internal banking operations.
5G and IoT can together improve the surveillance of banks. Security teams or senior bank managers can get a live streaming feed of bank surveillance cameras on-demand on their mobile phones.
Finally, it is not only the customers who are going to be benefitted. 5G along with IoT, Virtual Reality, Augmented Reality will be able to create an ecosystem where the internal operations and processes of banks will become better connected and fast. This will enable various banking departments and people to interact with each other seamlessly by their smart devices or wearables on the go.
Just like its predecessors, 5G technology will be a game-changer for the finance sector. The possibilities that we discussed here are just scratching the surface. Once 5G becomes more prominent it will be very exciting to see how FinTech will take it to its advantage and come up with ideas and innovations that were never thought of earlier.
Disclaimer: The author of this text, Robin Trehan, has an Undergraduate degree in economics, Masters in international business and finance and MBA in electronic business. Trehan is Senior VP at Deltec International www.deltecbank.com. The views, thoughts, and opinions expressed in this text are solely the views of the author, and not necessarily reflecting the views of Deltec International Group, its subsidiaries and/or employees.
About Deltec Bank
Headquartered in The Bahamas, Deltec is an independent financial services group that delivers bespoke solutions to meet clients’ unique needs. The Deltec group of companies includes Deltec Bank & Trust Limited, Deltec Fund Services Limited, and Deltec Investment Advisers Limited, Deltec Securities Ltd. and Long Cay Captive Management.
Company Name: Deltec International Group
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