5G Connectivity: Changing the way you bank

The express highway of communication has just opened up and the world is now a much smaller place. And, 5G is expected to bring about yet another revolution within the fast-changing digital spectrum that we are already a part of. The impact of 5G connectivity will be felt across industries. The banking sector in particular will tremendously benefit from the existence and use of 5G.

5G affords banking institutions to personalize their customer experience while expediting the time it takes for their numerous security checks to occur, among many other benefits. Some of the most evident changes are listed here.

No more waiting
 

5G transmission speeds approach 15 to 20 Gbps, and this speed allows for more direct access to remote files, locations, and applications. Not only that, but the advent of cloud servers ensures that there is minimal requirement to access the internal memory of devices, and this further reduces wait times. This is particularly beneficial to banking as the security checks rely on simpler, but far more rigid handshake signals. Moreover, 5G offers up to 10 times lesser latency than 4G signals.

The more we use, the more we improve
 

The tremendous speed offered by 5G networks will enhance the efficiency of banking apps since these apps can now handle the larger load and execute instructions faster. Combine this with the AI and machine learning that a lot of banking applications utilize and you will understand how the apps are bound to become more efficient and reliable. This will directly affect the number of individuals who will avail of these apps and this, in turn, will enhance the app AI even more. This is a rare and positive catch-22 situation. 

It is not our bank, it is now your bank
 

The speed and reliability of 5G networks translate to a hyper-personal customer experience. Considering the highly competitive nature of banking, this will severely (positively) affect customer satisfaction. Considering that companies who prioritize customer experience see a jump of 4-8% in their revenue and that 96% of customers say that customer experience is a very important consideration to brand loyalty, 5G will definitely change the way the customer is perceived. Banking relies on customer loyalty a bit more than other industries, so this will become integral to the way it is conducted in the future. 

Rural clientele
 

The penetration of 5G to rural areas will take a little more time, but it is an inevitability. So far, rural regions (especially in India) are still reliant on traditional banking methods with banking apps being availed by a minority. However, 5G will enhance that reach. Rural India is also set to increase its financial capacity due to the overall effect of introducing advanced tech in farming practices and the digitalization of certain farming practices and markets. Thus, they are looking to invest and with 5G enabled banking, the bank will come to them.

Superior security checks
 

With the speed that 5G offers, any exploitable latency in the system and any loopholes that are found can be updated in real-time, without interrupting the customer experience. The high speed and receptiveness of the network will also allow for far superior security checks which happen instantaneously such as facial recognition, geolocation as well as physical characteristics check. 

No one left behind
 

A vast majority of the population does not use online banking today. This is the last untapped market for the banking sector. The answer is VR-backed banking. Though this is unfeasible with 4G, it is very doable with 5G. This way, a personalized experience can be offered to all individuals and this, in turn, will slowly ensure that banking moves from physical locations to virtual ones, granting access for all. 

Small branch, big game
 

Pop up branches are branches staffed by a minimal crew, but 5G offers the same services that larger branches offer. This, in turn, will increase the penetration rates of banks. Thus remote locations and even locations affected by disasters can quickly have a pop-up branch established which can go operational in a jiffy. 

Money when you need it and not a moment later
 

The high speeds of 5G shall ensure that customers can conduct financial transactions instantly and that a greater load of transactions can be handled seamlessly. This has a very pronounced effect on customer satisfaction and this, in turn, will boost the trend of digital payments even more. 

5G is set to change the world in more ways than one. The banking sector which has inherently faced speed and loading issues will finally be able to avail all the benefits of digitalization by becoming more efficient, more reliable, more consumer-friendly and more capable of (AI-enabled) thought. Banking will never be the same and the future of banking will be a huge virtual arena where global transactions will happen as if within the same room.

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