5G is the newest cellular connection technology and allows for streamlined data connectivity and quicker, easier, and safer digital payments and banking. 5G Digital banking has never been in the spotlight as much as it is right now, with every company and institution trying to get a piece of the action. 5G digital banking is expected to completely transform how we do banking and make payments. Continue reading below to learn more!
The much-anticipated application of 5G technology in financial services took a major step forward when Verizon Business and Mastercard announced a strategic partnership that the companies believe will fundamentally change global payments and commerce. Just two years after Verizon launched 5G service in two Midwest cities, the high-speed technology is already predicted to be far more than an incremental change.
Telling Statistic: PwC anticipates approximately $43 billion in productivity gains for financial services in the U.S. by 2030 from 5G, primarily through improved customer experience and reduced losses from fraud. By now anyone with a new mobile phone has seen a little “5G” indicator show up on their screens from time to time. Although far from universal so far, PwC predicts 80% of the U.S. population will have 5G coverage — either at home or at work — by midsummer 2021. There are different levels of 5G service, but all of them are faster than the predecessor 4G network technology. In terms of mobile devices capable of tapping that speed, the consulting firm pegs that at just 12% so far, therefore usage of the technology won’t reach scale for some years.
Three 5G-Related Technologies to Be Aware Of: Accomplishing all this may be a challenge as it entails not only 5G, but a host of other emerging technologies that just now are entering the “technosphere.” These are even newer than such by-now mainstream technologies as artificial intelligence, internet-of-things, and wearable devices — although all of those figure prominently as 5G becomes ubiquitous.
Here’s a quick primer on three 5G-related technologies that may be common knowledge in a few years:
Edge Computing: IBM defines this as a distributed computing framework that brings enterprise applications closer to data sources. The tech company further explains it this way: “In the past, the promise of cloud and AI was to automate and speed innovation by deriving actionable insight from data. But the unprecedented scale and complexity of data that are created by connected devices have outpaced network and infrastructure capabilities. [With edge computing] data is processed and analyzed closer to the point where it’s created.” Edge computing is a big reason why 5G is so much faster than 4G.
XR: This stands for “extended reality” and refers to the use of immersive technologies that merge the physical and virtual worlds. It includes virtual reality, which produces an artificial three-dimensional environment; augmented reality, which interacts between a virtual experience and the real world; and mixed reality, which combines both the digital and real-world into one environment so they coincide and interact with each other in real-time. The 5G realm, due to speed and short latency, makes such applications practical. For financial services, one or more of such applications could enhance digital customer interactions, including in-branch.
Gait analysis: As one more arrow in the quiver of online authentication, identification, and fraud detection, gait analysis purports to be able to detect an individual’s unique walking style and add it to other biometric processes. 5G makes this practicable. The American National Standards Institute says gait technology has two advantages over fingerprints and iris recognition: It can be done at a distance and it doesn’t require the user’s recognition.
Emerging technology such as 5G and mobile edge computing will undoubtedly reshape how we interact with each other, making it all the more critical for these exchanges — particularly payments — to be trusted and to anticipate further changes. It’s a hop they must take because fintech and big tech competitors will be all over 5G capability.