More than 60 countries have 5G service networks, with more than 200 million smartphone users connected to them. These networks provide early hints at 5G’s eventual performance benefits—most modestly improve throughput speed over late generation 4G LTE networks. But upcoming improvements will provide new opportunities to financial services firms thanks to faster speeds, lower latency, and higher device density.
How will consumers benefit from 5G in financial services?
5G will improve mobile apps and remote banking with richer media communications and more instantaneous services. The faster throughput speeds and lower latency will accelerate credit approvals, improve customer service via chat or virtual assistants, and increase the security of mobile payments and transfers while reducing friction. Down the line, more branch bank activity could be sustained in low-trafficked areas via virtual meetings or mobile bank branches.
How will data available to financial firms improve with 5G?
The dramatic increase in the number of internet of things (IoT) devices will feed financial firms with an increased flow of new, timely, and detailed data on businesses, real estate, and agricultural operations. Insurance companies can use this information for policy origination and approval, banks can hasten loan approvals, and investors can make investment decisions based on more complete data. And smartphones will provide biometric information to signal fraud earlier.
How will 5G improve financial decision-making?
5G and edge computing will lead to more data storage and processing in the cloud, allowing for much more sophisticated AI and analytics. In the long run, this will make data storage cheaper and more flexible. By allowing data to move to the cloud and improving virtual reality (VR) communications, 5G will also enable more integrated offices across a more dispersed geography, permitting more workers in remote locations to tap relevant client information and meet virtually with clients.
Are 5G networks ready to deliver on this promise?
Not yet, but they’re developing quickly. Most applications of 5G in financial services are test cases currently. Now is the time to reconceive operations and products to take advantage of the coming revolution in media, IoT, and cloud computing.
WHAT’S IN THIS REPORT? This report analyzes how 5G will change financial services, focusing on five key applications: mobile banking, authentication and security, insurance and investments, community banking, and operations.
KEY STAT: According to a September 2020 survey from the World Economic Forum (WEF), financial services companies worldwide indicated that they are adopting technologies like cloud computing, encryption, and big data analytics, which will all be enhanced by 5G.
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