The coronavirus outbreak–and the year 2020 as a whole–have provoked many new innovations. In particular, one modern technology advancement will expand significantly in availability and usage this year: 5G mobile data networks.
Here, Rory Brown discusses these faster mobile data networks and how financial institutions, along with all industries, will need to understand their implications on their existing physical locations.
What is 5G?
5G mobile data networks are not a simple widespread technology update; many cautionary perspectives surround the subject. The integration of 5G into average human lives compares similarly to the introduction of the first iPhone. It is a massive step up for technology communications, but quicker processing and functionality is what the present-day consumer seeks.
Cell phone 5G technology will allow for faster speeds that dominate what 4G networks offer. The rate of 5G is ten times faster than that of 4G. The new system will also open the doors to higher connection density for those with multiple devices utilizing a single receiving unit, decreasing reaction time.
However, though the benefits seem incredible, 5G has its drawbacks. Discussions revolving around the innovative network emphasize the steady stream collection and personal data use through analytics and artificial intelligence. Wearable technology such as smartwatches will also advance in how information is collected and shared when given access to 5G.
5G and Virtual Banking
The adaptation to technology is so familiar in the financial service industry that eighty-one percent of financial institutions have altered and upgraded operations with modern technology over the past couple of years.
What is the primary motivation for all of these technology upgrades in banking?
Improving back-end functions for superior customer service to stand out from competitors in an oversaturated market is crucial for the survival of modern banks. The biggest benefit 5G will give banks will be through customer experiences since it modifies the way banks deliver their products and services to clients.
An example of a 5G change in banking would include a remote teller. Such a shift is a leg up for virtual banks to improve personal interaction with customers when a physical banking location is out of the picture. A remote teller grants banks digital access to consumers via video chat; for banks with physical locations, this contemporary technology will cut down on customer travel times to branches. Virtual banks that integrate 5G into their processes will reap the benefits throughout multiple areas.
About Rory Brown
Mr. Rory Brown has focused on financial technology and investment management for 30+ years. Rory Brown Co-Founded one of the world’s first Internet Banks and writes extensively about the industry.