Fifth Generation connectivity is gradually getting to every area of the world.
5G is fast becoming a darling among digital enthusiasts thanks to its speed and increased connectivity.
The world is set for massive disruption, with 5G becoming mainstream. From the world of sports (with amazing sports-related income opportunities presented on telecomasia) to banking, we can rightly expect an overhaul.
Yes, the banking sector would not be excused from the goodies 5G brings on board. Specifically, in this article, we will discuss five ways in which 5G will change banking in the years to come.
Table of Contents
Improved Customer Experience
Obviously, banking services could do better, especially with frequent network downtimes, customer complaints, fraudulent activities, and app problems.
However, by leveraging the speed that comes with 5G, banks can improve how they relate with customers and the overall consumer experience.
This can include providing real-time insights for customers and enhancing the user experience by having video calls with customers to further understand their needs and how they can be met.
Banks can even go so far as to provide augmented and virtual reality experiences to their apps and websites to keep customers happy.
Loan processes will also get faster as banks can easily run through the credit verification process, providing customers with their loans without paperwork in a matter of minutes.
The possibilities of 5G connectivity improving banking customer experience are wide, and bank managers can leverage it for different processes.
Enhanced Digital Banking Technologies
The pandemic has increased the need for digital technologies. When the world was on lockdown, banking services continued without traditional banking methods.
Customers had to rely on online banking and their mobile apps. With 5G connectivity, banks and other financial institutions can build more cutting-edge applications and web solutions.
They will also be better equipped to fix bugs in existing software and upgrade their security measures. The speed of 5G will bring seamlessness to banking operations.
Digital payments can be faster, and traffic on bank channels would be reduced, leading to a more efficient service culture. With the help of faster connectivity, banks can also provide instant recommendations to customers on real-life problems.
Another exciting thing to expect with 5G connectivity is instant big sale purchasing. Buying on a large scale would be made easier as banks can speedily perform credit checks and other digital operations to improve the process.
Security and Prevention of Fraud
5G enhances the network’s speed and allows data to travel faster across several networks. With that, banks and other financial institutions can effectively track transactions from when they are initiated.
The banks will also be better positioned to accurately pinpoint important data such as the location, customer ID, and transaction amount to help reduce fraud cases.
In the case of debit/credit card fraud, banks can accurately track sensitive data to save customers money.
Also, with better technologies, banks can erect better firewalls to protect customer data from hackers. Banks can, with the help of 5G security, create better authentication methods for customers to keep their accounts and mobile apps safe.
For example, 5G will accelerate the process of 3D secure authentication (3DS2), where customers have to provide their biometric data in real time.
Increased Banking Access to Rural Areas
Some experts have predicted that 5G network usage will have increased to about 5 billion subscriptions worldwide by 2026.
5G is already in over 176 countries serving millions of customers and businesses. The numbers are increasing as 5G penetrates into the rural regions of the world.
With the advent of 5G technology, customers in rural areas can access banking services without going through traditional banking methods.
Underserved regions of the world can finally get richer banking services, especially in the digital aspect. 5G connectivity will enable financial institutions to improve their services and up their game to improve customer service.
Digital Payments revolutions
The world is surely and gradually moving to a more digital outlook while pushing for a cashless experience for banking customers.
Already, there are hundreds of applications and software that enhance digital payments all around the world. However, customers in different regions still need help processing money based on limitations around banking channels.
This can change with the help of 5G connectivity and the increased Internet of Things (IoT) adoption.
Indeed, a lot more people would be able to make payments with devices such as smartwatches. Digital wallets would be easier to access, and they would be more innovative and reduce time-consuming processes.
There are several ways in which the much-awaited 5G revolution can improve the way banks serve customers. Banks and other financial institutions can effectively carry out complex processes.
Hopefully, these institutions would be able to harness the power and speed of 5G to provide customers with the very best there is.
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