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5G Perspective

5G will change everything!

The 5G generation of cellular technology is right around the corner. As countries begin to roll it out, 5G will transform the way we live and work – and this will open up fresh opportunities for retail banking. These come to mind:

  • Alexander Graham Bell, the inventor of the telephone, once said, “Great discoveries and improvements invariably involve the cooperation of many minds.”
  • The first handheld mobile phone was demonstrated by John Mitchell and Martin Cooper of Motorola in 1973.
  • The newest network iteration, 5G, is built upon a foundation of the technologies that came before it.

So, what is 5G?
It is the fifth-generation mobile network. It is a new global wireless standard after 1G, 2G, 3G, and 4G networks. 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.

5G is important for mainly following three factors:

  • More and faster. 5G greatly increases communication speed, compared to 4G, allowing even more data to travel across networks in real time. 5G networks will enable much more processing to be moved to the cloud from mobile phones.
  • More secure. With 5G, customers might get connection speeds of up to 450 mbps, which will vastly enhance fraud prevention capabilities by analyzing stream data like face and voice recognition.
  • Enhancing customer experience. The combination of 5G, artificial intelligence (AI), and big data will enable the collection of real-time information, and lead to the signi­ficantly improved customization of banking services.

The rollout of 5G will transform the digital bank. How?
With that in mind, 5G has the potential to rewrite consumer expectations. Reliability and speed may be less of a problem. Lower cost per bit will help make unlimited mobile data less expensive. Seamless mobile transactions will be a default. Let us look at key impact areas for banks.

  • Firstly, the increased speed that comes with the 5G network will enable banks to execute more complex processes and with greater speed, minimizing waiting times when verifying the identity of new customers or monitoring loans taken out, among other procedures.
  • Secondly, it will improve the current performance of existing banking apps and websites since functionality is not, in some cases, one of their strong points. This is key, since it is no secret that Fintech companies are rapidly catching up with traditional banks.
  • 5G will also provide faster and simpler payment options, which will make mobile and digital payments even more attractive for the general public and for businesses, further boosting their use.

Benefits

  • Hyper-personalization – tailor-made offers;
  • Better penetration in rural communities;
  • Augmented reality and virtual reality – the bank at home;
  • Available on all devices;
  • Overall infrastructure and performance upgrades;
  • Another push toward digitization;
  • Use of new technologies for better customer service – IoT, AR, VR;
  • Improved security and fraud prevention;
  • Rise of newer form-factors and customer channels for banking; and
  • Rise of autonomous and smart banking with blockchain, IoT to boost customer experience.

5G along with blockchain and IoT – Future-ready combination
Blockchain- and 5G-enabled IoT will redefine business models for sure. Blockchain and smart contracts may be of great added value in the 5G IoT smart supply chain. Immutable blockchain transactions help ensure that all parties can trust the data and take action to move products quickly and efficiently. One of the most attractive characteristics of blockchain, in any industry, is its ability to secure data and thwart cyber-attacks. Blockchain is a distributed ledger technology (DLT) that is transparent but completely encrypted.

Example. Chronicled combines blockchain and IoT products to deliver an end-to-end supply chain solution. Focusing on the pharmaceutical and food supply industries, Chronicled uses IoT-enabled shipping containers and sensors to give real-time updates on shipping processes.

Global 5G adoption is expected to hit one billion in 2022.
5G is hitting the mainstream fast and according to a GSA report, around 70 countries had 5G networks as of June 2022, up from just 38 in mid-2020. Approximately 15 more have had 5G mobile technology deployed in part. It is expected that 5G will reach 1 billion users this year after just 3.5 years in use, compared with 4 years for 4G and 12 years for 3G. The launch in India is expected for next year and an auction for 5G bandwidth frequencies kicked off this week.

According to estimates from Ericsson’s latest Mobility Report, the number of 5G smartphone subscriptions worldwide will blow past one billion this year, almost doubling from 2021. That would mean 5G reaching that milestone two years earlier than 4G did after its introduction, and, according to Ericsson’s estimates, subscriptions will double once again by 2024.

Social impact of 5G
Many sectors have high-capacity connectivity needs, which can now be solved through 5G. Imagine faster diagnosis at the doctor’s, even when remote, or improved diagnostics tools for first responders. Transport and logistics can be automated at harbors or factories. 5G can deliver social value across 11 key areas that correspond to 11 of the United Nations’ 17 sustainable development goals (SDGs). This value derives mainly from contributing to good health and well-being, enhancing infrastructure, promoting sustainable industrialization, and fostering innovation.

Future readiness
Certainly, 5G has the potential to give the IoT industry – from fitness trackers to smart cities – the boost it needs to become a trillion-dollar industry.

It will be interesting to see with Metaverse, 5G, and IoTs, smart cars, smart homes will gain voice momentum? Customer behavior is changing and becoming more hyper-personal. Emerging technologies like conversational AI, natural language understanding, text-to-speech, etc., are potent tools to break the digital divide for businesses and platforms.

5G, the most anticipated wireless network technology, is touted to alter the way people go about their daily lives at home and work. Certainly, it will change everything around us.

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