Bringing 5G to life in the banking and financial services sectorBy Paul Taylor
More than a vision, 5G is a reality that organisations are deploying right now – but that’s only the beginning of what’s possible. Over the next few years, 5G will be an essential business enabler, and those who don’t act now run the very real risk of losing the digital transformation race and seeing their business stolen by the likes of an Uber or Airbnb digital disruptor.
The recent "The Future in 2021" survey by BT shows that, of all transformative tech, 5G has seen the biggest growth in adoption since last year and almost a quarter of organisations are now planning to invest in 5G tech.
This article aims to show you the 5G innovation that’s already operating across a variety of industries and signposts and how you could adapt its uses to meet your organisation’s current and future requirements.
What does 5G mean for the banking and financial services sector?
It will be the key to addressing critical sector challenges. Four waves of change are sweeping through the banking and financial services sector, and here’s how 5G could be pivotal in meeting the challenges they bring:
When you explore the possibilities of 5G, you find a communication environment that has the potential to fundamentally transform banking and financial services. Here are some of possible ways that 5G can transform the sector’s landscape:
1. Transformational seamless connectivity
At its heart, 5G is a catalyst for seamless connectivity. It completely changes how we think about enterprise data networks, cloud, collaboration and edge solutions, and it opens up new opportunities for digital transformation. 5G will work in harmony with WAN, LAN, wi-fi and security solutions so that it won’t matter where you’re at.
2. The ability to do more in a data-driven world
Offering a step change in bandwidth, 5G can result in up to a 100-fold increase on 4G, bringing lower latency and increased reliability. It uses the latest and most efficient radio technology, providing an extra layer of capacity and allowing a large number of devices to be connected all at once.
It can also support significantly increased network capacity and control, enabling substantially greater volumes of connections within a richer, more reliable network ecosystem. Better capacity and control will enable the banking and financial services sector to collect and analyse larger amounts of data more effectively, for improved decision-making, operations and energy efficiency.
3. A springboard for innovation
The improved capacity that 5G brings will be the foundation for new, digital innovations and better business agility that can span the Internet of Things (IoT), Augmented Reality (AR) and Virtual Reality (VR), automation and services driven by artificial intelligence.
While 5G adds another dimension of complexity and sophistication to cellular security architecture and definitely has the capabilities to unlock new boundaries for the banking and financial services sector, we can only truly reap its benefits only if increased security vulnerabilities are tackled.
A skilled partner with the right security-focused technology will be able to mitigate security risks and deliver assurance and certainty across every application, component, device, and industry environment that 5G will support.
Imagine the possibilities of 5G in the banking and finance world
The new network’s potential is significant, with 5G-powered improvements to customer experience predicted to make a net contribution to global GDP by 2030 of US$55bn, and 5G enabled fraud prevention measures predicted to contribute US$30bn to global GDP by 2030.
How will the promise of 5G translate into practical benefits for their organisation, and how can you apply the benefits of 5G to your environment? Here are some ways 5G can open up possibilities in the banking and financial services industry:
• Connect branch offices more cost-effectively and flexibly
• Provide more dynamic workplaces free from wires
• Facilitate access to cloud-based services
• Enhance virtual, augmented, self-service and automated solutions • Help build API platforms for ecosystem partnerships
• Support mobile trading by brokerage firms
• Improve online security for mobile financial transactions
• Reimagine mobile banking app design
• Simplify mobile payments
Future of banking and financial services with 5G
The future of 5G is so rich, we’ve yet to map out all the ways it will transform the banking and financial services sector. However, there are four clear areas to watch and explore:
Start building your 5G future
Leading financial organisations around the world are bringing 5G to life throughout their operations, using 5G to power transformation and establish an edge. The potential impact on the banking and finances world is enormous, but to fully realise the possibilities of 5G, organisations need a strategic approach that factors in 5G into their technology roadmaps.
To make 5G a reality, organisations need to forge strong, collaborative partnerships with providers who can deliver the complete package of security, infrastructure, cloud, and technologies that 5G takes.