BID® Daily Newsletter
Jul 19, 2019

BID® Daily Newsletter

Jul 19, 2019

How 5G Will Affect Digital Banking

Summary: 5G is supposed to be 100x faster than 4G. So how can your bank leverage the power, speed and capabilities of 5G to enhance customer service and operations?

We saw a story the other day in the press that warned vacationers that microbes of bacteria will colonize your skin after only 10 minutes of swimming in the ocean. Researchers say that may not be a bad thing, but they do suggest taking a shower to rinse off after you get out, just to be safe.
As community banks swim around the oceans of technology advances, one that is getting more press lately is about 5G. As billed, 5G is 100x faster than 4G for moving around data through mobile wireless networks.
So, how can your bank leverage the power, speed and capabilities of 5G to enhance customer service and operational activities, and when will it all be available?
Things are already moving forward, as 5G networks with massive bandwidth are being incrementally rolled out across the country. Such networks have "ultra-low latency," meaning there is minimal delay when processing extreme volumes of data. That makes them as close to real time as possible. Because 5G leverages both satellite and relay points that will be located much closer to each other than existing cell towers, it means essentially no dead zones and few if any dropped calls or online interruptions.
Coupled with the rollout of 5G phones and tablets starting this year, the possibilities for enhanced banking are gigantic. Here are some of the other benefits 5G promises to deliver.
Safer. Mobile banking will become ubiquitous, thanks to virtually no latency or reliability issues anywhere. It could also be more secure, as 5G will enable banking apps to access cloud-based biometric authentication services that have more computing power than devices alone. This will allow the capability to deliver more accurate facial and other biometrics.
Faster. Customers will greatly benefit from banks deploying third-party application programming interfaces (APIs). 5G will enable fintech apps utilizing APIs to access and process customer bank account information in near real time. This will give customers even more features exactly when they need them.
Easier. Customers will be able to download "lighter" apps too. This will enable banks to process mobile transactions on the cloud, which means faster computing times and easier upgrades for the bank. Apps with fewer computing requirements would be more responsive and also free up more space on customer devices too.
Connected. Customers could use their mobile devices to have video sessions with remote tellers, thanks to 5G. Banks could more effectively use artificial intelligence to immediately detect locations and offer more accurate advice for instance. This could include such things as offering deals on auto loans right when a customer pulls up to a car dealership, for example.
Mobile. Virtual reality streaming through 5G networks can also enhance experiences in branches and at ATMs through the use of wearables. Banks could also deploy mobile branches with more capabilities at large events, like football games.
The full promise of 5G will be upon us before we know it, so read up now so your team is ready to take advantage!
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