Right from the time the first mobile network was launched about 40 years back, the communications technology continues to help the enterprises in increasing productivity, enhancing operational efficiency and improving collaboration and reaching newer markets.
Even so, the upcoming 5G technology promises to bring a paradigm shift in the way business is conducted. Unlike the previous communications technology, 5G is not just about better speed or higher bandwidth, it promises to enable several pathbreaking use cases, including robotics, automation, mixed reality, among several other industry applications. More importantly, it complements other emerging technologies like Artificial Intelligence (AI), Machine Learning (ML), robotics and the Internet of Things (IoT) to drive enterprise digital transformation.
From Industry 4.0 to remote surgery to smart cities, it opens up a plethora of new opportunities for enterprises across the globe. Further, faster connectivity and better reliability will allow the administrations to execute the mission-critical services remotely.
Essentially, 5G enables faster speeds of 10Gbps, around ten times faster than 4G, and extremely low latency or one millisecond. The telcos will need to adopt several new concepts, such as network slicing, mobile edge computing, service-based architecture, SDN/NFV and cloud RAN to build a flexible, agile and reliable 5G-ready network. This will help them to address the new emerging service requirement.
The 5G is likely to contribute as much as $2.2 trillion to the global economy over the next 15 years, according to the recent GSMA study. By the end of this year, 20% of the countries would have already launched 5G services. India is all set to conduct 5G spectrum auction in the coming year.
The 5G will lead to the era of connected everything with billions and billions of devices consuming and generating a humongous amount of data. Analytics of this data will help the enterprises generate actionable insights, which they can use to offer products and services that the users actually need. The 5G technology will enable more seamless adoption of Artificial Intelligence (AI), allowing the enterprises to use machine learning for enhancing operational efficiency.
One of the significant beneficiaries of 5G technology is the manufacturing industry. Industrial automation will transform factories into intelligent, interconnected units that will be able to work without human intervention. This will help in increasing productivity, even as the cost of managing and maintaining the factory comes down. 5G-powered factory floors will also bring down human error. It promises to drive the digital transformation of the industry.
While 5G promises to impact enterprises from all industry verticals, it is especially going to play a crucial role in the transformation of the banking and financial institutions.
Transforming the Banking Industry
The advancement in Information Technology has resulted in explosive growth in the banking industry. Be it ATMs or internet banking or mobile banking, the technology has helped the banking industry in reaching their customers in new ways. Further, it has helped in making banking more convenient, appealing and has enhanced the ease-of-use for the end-user.
Today, computerization and use of wireless networks allow a customer of any bank in any branch to access his account from any ATM, regardless of time or location. The technology also allows people to open an account without actually visiting the branch.
5G further promises to change the way banking is done. The future of banks is going to be vastly different from what it is right now. Here are a few ways in which 5G will transform banking industry once and for all:
Mobile payments are all the norms but ubiquitous coverage coupled with ultra high speed and low latency means that the users will start to depend on the digital mode of banking increasingly. Further, service providers will be able to use big data analytics in real-time to offer the right products just when the customer needs them. It is sure to inspire users to enhance their usage of digital banking for their financial needs.
Addressing the financial needs of unbanked areas
5G’s expansive network capabilities promise to play a crucial role in closing the digital divide between urban and rural areas.
Even as technology has helped the banks in reaching customers through several platforms, it is still a challenge to provide banking services in remote and yet-to-be connected areas.
As 5G becomes all-pervasive, it will allow financial institutions to use virtual reality and digital banking to provide financial advice and support to improve financial inclusion.
5G will allow automatic renewal and updation of an app, making it more secure. Further, facial recognition and other multimodal security measures will bring down instances of security breaches. All this will help in improving the customer confidence in using the digital platforms for their banking needs.
Enhanced customer service
There are myriad ways in which the banking and financial sector will use 5G technology to enhance the customer experience. Video calls with the end-users to better understand the customer needs to providing AR/VR powered experience are just some of the ways the banks will be able to address the needs of their customers better.
The financial institutes will be able to collect real-time information, ranging from location to payment information to contextual information. The banks will be able to use this information to provide intelligent and relevant financial products and services to their users.
More efficient back-end processes
The use cases for the financial industry are endless. For instance, damage appraiser can use 5G-powered high-speed networks to send high-resolution pictures to the head office for a faster decision. The banks and insurance firms can use technology for speedier redressal of customer complaints.
There is little doubt that the future of financial services is mobile. 5G networks will be more reliable and intelligent, which will enable banks to be more efficient and productive.
The 5G technology is going to be a game-changer for the enterprises as they evolve and move towards their digital transformation. It is time for the enterprises, from all the business verticals, to start the digital transformation, so they are in the position to leverage the unprecedented business opportunities created by the 5G technology.
5G will open up new opportunities for the financial sector. As the telcos modernize and upgrade the networks for 5G, the banks should start planning to leverage 5G for growth and to serve their new-age customers better.
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