The COVID-19 crisis has somewhat slowed down the digitalization of banking, which was admittedly reluctant about accepting it in the first place, but the adoption of the new network will give new impetus and initiative for the rapid introduction of new services and banking channels. Namely, higher connection speed and lower latency are crucial for the future of banking because they ensure not only faster but also much more secure money flow.
How will we bank in the future and in what five ways will the 5G network affect banking services and the sector as a whole?
Instant online purchases
5G has significantly better latency than the existing network, so the m-banking experience will further approach the concept of real-time shopping. Thus, with the help of the 5G network, shopping by simply scanning products from catalogs or websites could become part of our daily lives. Faster and easier purchases will increase the popularity of mobile and digital payments, which opens up great opportunities in creating new banking products and applications. 5G technology thus enables more efficient applications that store most of the data in the cloud, while the use of IoT can increase customer interaction.
New generation of customer service
Consumers expect a lot from new technologies, so banks will be required to provide a new level of personalization of services and products. Clients want banks to anticipate their needs and create new services, and as in healthcare, they are inclined to virtual assistants, so banks should turn to AI (artificial intelligence) or VR (virtual reality) to offer technologically advanced solutions for clients. For example, VR can be used to create a so-called digital branch so that banks can maintain some kind of human contact with customers. They should also offer the customers video calls instead of in-person appointments, as well as use the technology for customer analytics to better understand their clients’ financial habits and needs.
Increasing customer base and access (5G ATMs)
In many rural areas, there are no bank branches, so banking services are both less known and less accessible to clients. By applying VR technology and improving mobile banking, digital banking can reach larger numbers of customers, and 5G technology also helps maintain ATMs remotely, facilitating expansion to rural areas. With the help of the next-generation network, ATMs can be maintained remotely with the help of AR glasses that would allow bank employees to contact technicians in real time, which ultimately means faster repairs.
Faster loan processing and approval of large transactions
5G can simplify the processes related to both the approval of large transactions and the number of transactions made. The former is very important for the flow of money, which is bound to be much faster with the help of new technologies. Given the potential to speed up data processing and customer data analytics, resulting in a personalized approach to the client, we can also expect much faster processing of loan applications. 5G can not only speed up banking but also make the whole process more efficient by processing data in real time. It should not be overlooked that data analysis brings greater precision in making credit decisions.
Increased security and fraud prevention
Faster transactions and data flow reduce the possibility of fraud and increase the security for both customers and banks. With the help of 5G technology, banks will be able to identify customers with the help of real-time biometrics and geolocation, which will reduce fraud in transactions and make it easier to prove attempted identity theft. Proactive fraud prevention in the financial world and the reduction of fraudulent transactions – one of the biggest challenges in 21st-century banking – can also be enabled by 5G.