5G is the next generation of wireless communication networks that will connect our hyperconnected world to the digital transformation of the future. The entire world is now eagerly awaiting the speedy implementation of 5G.  Today, there are 5G service networks in over 60 countries, with over 200 million smartphone users connected to them. Faster speeds, higher device density, and lower latency will open up new opportunities for financial services firms in the future.

First, post demonetization and later, during the coronavirus pandemic, the need for digitization in every sector has grown. Several financial institutions focus on creating an easy-to-use, fast, safe, and touchless customer experience. 5G will help make these features more prevalent, particularly in rural areas. The 5G network, in contrast to its predecessors, was designed for industrial use cases. However, its capabilities extend to transforming the lives of consumers.

5G allows for the customization of experiences by collecting massive amounts of data generated by consumer devices, everything from payment information to location to a user’s behavioral data. Its low latency enables real-time information gathering and aggregation to generate recommendations based on learned customer preferences.5G is bound to completely transform the way the world works.

How will 5G benefit consumers in financial services?

5G will improve the performance of mobile applications and remote banking with better media communications and more instant services. The increased throughput will speed up credit approvals, increase the security of transfers and mobile payments, and enhance customer experience through chat or virtual assistants while minimizing downtime. In addition, banks can enhance their reach by offering services in low-traffic areas through mobile bank branches.

How will 5G facilitate better financial decisions?

5G facilitates swift data processing with storage in the cloud and edge computing, allowing for much more sophisticated AI and analytics. This will make data storage more affordable and flexible in the long run. 5G will enable more integrated offices across dispersed geography by allowing data to move to the cloud and improving virtual reality communications, allowing employees in the financial sector, even in remote locations, to tap relevant client information and meet virtually with clients so that they can provide customized advice and specific information to the client to empower them to take well informed and timely financial decisions.

How about next-generation financial services?

Next-generation technological applications and capabilities could redefine financial services. They are already affecting digital asset strategy in some circumstances. Various financial initiatives based on blockchain have begun to emerge, advancing the drive toward decentralized finance and effectively unbundling traditional finance. They attempt to replace centrally managed transactions with peer-to-peer relationships across the financial services spectrum, from everyday banking to lending and borrowing to trading. By using blockchain, 5G IoT networks can interact and transact (store and retrieve data) with assured data provenance, transparency, accountability, immutability, and non-repudiation for every user.

According to a survey, 62% of respondents from the financial industry have increased technology spending to promote business. However, financial services have continued to evolve quickly as a complex, demanding, highly regulated industry, delivering customer-centricity, combating financial crime, supporting innovation, and driving efficiency. Financial institutions have remained relevant and competitive as a result of this approach. 5G has the potential to facilitate the development of new mobile applications with edge technology and enhanced security, enabling the financial services industry to continue to develop and grow to meet and exceed consumer expectations by partnering with service providers on 5G adoption.

Conclusion

5G is technologically a giant leap forward, but the added complexity necessitates financial firms having visibility across their entire network to ensure the best experience for customers. With proper implementation, 5G will eliminate bottlenecks in a wide range of financial services, improve front-end client interfaces, middle-office partner collaboration, and internal back-end operations, and advance the industry’s overall emphasis on a mobile-centric business model.

M N H & Co Chartered Accountants provide next-generation financial services with our full range of integrated digital and data platforms. We facilitate collaborative creativity and increase efficiency by enabling customer-centric transformation.