What is 5G?
For years they have been talking about “the Internet of Things” (IoT) we’ve already seen the internet connecting to thermostats, refrigerators, home security systems, etc. But in order to have the bandwidth necessary to connect all the things you want to connect they need 5G to handle the load.
According to Qualcomm, “5G is the 5th generation mobile network… 5G enables a new kind of network that is designed to connect virtually everyone and everything together including machines, objects, and devices. 5G wireless technology is meant to deliver higher multi-Gbps peak data speeds, ultra-low latency, more reliability, massive network capacity, increased availability, and a more uniform user experience to more users. Higher performance and improved efficiency empower new user experiences and connect new industries.”
Low latency is a critical component of 5G. Low latency describes a computer network that can process a high volume of data with minimal delay (i.e. latency). These networks can support data access in near-real-time. – Tim McMahon, editor
Top 5 Reasons Why 5G Will Change the Finance Industry
They say 5G will soon change the way people do business. With its fast speeds, low latency, and huge data capacity, 5G promises an expanded mobile ecosystem. 5G will impact every industry, making safer transportation, remote healthcare, precision agriculture, digitized logistics — and more.
Aside from the efficiency it promises, 5G allows industries to explore possibilities. With it, the world can discover, develop, or improve technologies, such as augmented reality and virtual reality.
With 5G set to arrive this year, unparalleled levels of disruptions may be expected. This means organizations may have to prepare for a lot of things. After all, this new generation of network connectivity is set to reinvent the world, particularly the finance industry.
Here are 5 reasons why we think 5G will make a difference in the finance industry:
Reason #1: It Will Pave the Way for Wearables.
One promising aspect of using 5G in financial services is in the use of wearables. Nowadays, wearables are considered a handy channel for mobile payments. And in the near future, we may expect to see more of the use of wearables as a payment channel.
“Wearable technology is a category of electronic devices that can be worn as accessories, embedded in clothing, implanted in the user’s body, or even tattooed on the skin. The devices are hands-free gadgets powered by microprocessors and enhanced with the ability to send and receive data via the Internet.” – Investopedia
Over the years, biometric checks have become more sophisticated. Fingerprint scanning is already a thing of the past. Facial scans and voice recognition are now done to authenticate a user. So, what role does 5G do in these scanning wearables?
By connecting to the cloud via 5G, wearables could share data with financial institutions, promising more reliability than ever.
Reason #2: It Could Help Build Smart Cities.
The future’s smart cities will heavily rely on devices connected to 5G networks. There will be new public transportation modes like flying drone taxis and smart buses that will rely on this advanced network connectivity. Smart buildings will ensure businesses can work more efficiently as they will be engineered to optimize energy consumption. Smart billboards, on the other hand, will allow companies to target their consumers directly.
This 5G-dependent infrastructure that smart cities will soon be built on is set to provide a wide range of opportunities for financial and forward-thinking businesses.
Reason #3: It Allows an Easier Collection and Management of Data.
Because of 5G’s ability to gather a steady wealth of data from users, banks can do more than just protecting accounts. An automated financial assistant could send notifications to users that they have already reached their weekly budget limit. It can also suggest better ways to save. With its low-latency bandwidth, 5G can help provide a more accurate recommendation where it matters.
Reason #4: It Allows Financial Experts to Reduce Costs.
For businesses in the insurance sector for instance, it offers greater efficacy and a more precise and accurate calculation of risks. It will also be easier for damage appraisers to send photos to the office quickly. With 5G technology, high-end items could include tracking devices thus reducing the risk of theft or increased chances of recovery this would reduce losses incurred by insurance companies.
Reason #5: It Improves Communication and Allows Collaboration.
Although 5G provides a reliable infrastructure for different business models, its primary purpose is to serve as a mobile network. Other than streamlining communications, 5G will benefit financial organizations by improving the speeds of data transfer.
And apart from the business data gained via transfer, 5G will soon make possible remote working, allowing people to work in a cloud-based environment, where documents and files can be shared in real-time.
Wrapping Up
We may not see it now, but it’s clear that the future of the finance industry is 5G. As 5G improves and creates more reliable networks, it helps financial institutions have a more protected, efficient, and secure environment.
Author Bio:
A Computer Engineer by degree and a writer by profession, Cathy Trimidal writes for Software Tested. For years now, she has contributed articles focusing on the trends in IT, VPN, web apps, SEO, and digital marketing. To learn more about the latest updates in 5G, visit Software Tested. More than just providing PC repair tips and tricks, we are your go-to place for the most recent PC repair software tools and a lot more.
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