5G and the Big Green World
The age of 5G is here but what does it mean for the fintech sector? Before we delve into that, let’s understand a few key things about the technology. To the everyday user, the 5G spectrum brings with it speed in the form of faster downloads, video calling with lower lag, better connection between the Internet of things devices, and better shopping experiences, but can this spectrum also heighten their banking experiences?
Well, while speed is still touted to be the foremost and the most noticeable agent of change, 5G will bring with it a whole host of changes to the enabling technology. 5G will look to reduce the latency period from 50 milliseconds offered by the 4G spectrum to less than 1 millisecond. This ultra-low latency will offer near-real-life banking experience for the customers and will enable banking institutions to handle larger transactions and at scale.
Apart from this, here are 2 primary ways that 5G technology will revolutionize banking technology.
1) Enhanced Security and Fraud Prevention
This is a win-win for the banks as well as customers. As mentioned before 5G technology will enhance IoT device experience thanks to lower latency. This means that higher levels of fraud prevention and detection can be implemented which is great for banks. But this also means that fewer transactions will be deemed ‘fraud’ due to data loss when in fact they are legitimate, thereby more satisfied, and less irate customers! In addition, 5G will also enable organizations to add multimodal biometric security layers that can detect a user’s posture and position to validate identity and payments!
2) Improved Stock Market Transactions
While it is natural that 5G technology will bring speed to the stock market in terms of buying and selling, it will also spearhead an improvement in security. Through security features such as in-depth biometric identification, move from the existing fingerprint recognition to facial recognition and, with the advancement and implementation of more IoT devices, even layers of security based on the user’s pulse and oxygen levels!
5G technology can also aid in faster decisioning. As the technology can scan through multiple layers of data and patterns faster, it can give a more in-depth stock performance report that gives actionable insights based on predictive modeling. And thanks to existing models of AI and ML, the technology can also add a layer of risk profile to suggest a portfolio and/or next steps!
Although when it comes to finance, a cautious approach is always preferred to a fast follower approach, thanks to existing infrastructure and changing ecosystem of the fintech sector and an ever-evolving financial mentality and literacy of Indians and Indian institutions, the country is poised for an aggressive, yet measured adoption to the numerous benefits of 5G technology.