5G and the banking industry: what the future holds for their collaboration

5G and the banking industry: what the future holds for their collaboration

Banking is not only about finances, loans, and payment security, but also about technologies that make it more accessible and convenient. And 5G is bound to become one of these technologies. 

Recently Maxpay’s CEO Artem Tymoshenko wrote an article about “Four big ways 5G technology will change banking” for The Financial Brand. In it, he explained why banks and Fintechs should get ready for new opportunities that the technology will provide, and how the industry will be enhanced by it.

So, we’ve decided to point out some of the most insightful parts of it in this “Maxpay in media” edition.

The pandemic won’t stop the 5G deployment

Certainly, there were some delays in the global implementation of 5G technology due to the lockdown, mainly in Europe. Still, the situation caused by the Coronavirus proved that people and businesses need a faster internet connection with lower latency to reorganize their work and deal with massive data flows, which 5G can provide. 

And mobile operators are picking up on this demand, as 71% of surveyed operators already rolling out the 5G networks or planning to do so within a year and a half.

People are eager to try out new technology

As mentioned before, the current situation, as well as occurring digitalization of lots of businesses, will push people to use the internet more frequently for both work and leisure. 

Thus, it is expected that in 2025 the number of 5G subscriptions will reach 2.8 billion – around 30% of all mobile subscriptions at that time, with people picking up on 5G faster than on 4G.

5G will have a massive impact on banking

Starting with the obvious, the technology will improve the performance speed and quality of banking services, allowing for more smooth operations – from money transfers to investment trading. 

5G will give a push for a long-awaited digitalization of traditional banks – another feature that became highly in demand during the lockdown. 

The technology will also allow for the deployment of AR, VR, and machine learning, which will be incorporated for delivering better customer services both online and in banking branches.

Check out the full article on The Financial Brand to find out about more ways 5G will influence the industry.