A big change in banking is coming
Global fifth-generation cellular wireless, better known as 5G, is going to have a big impact within financial services–including in one way that will be “counterintuitive” to many CUs, according to the experts.
5G will dramatically enhance what mobile banking apps offer, put online lending on steroids, and help FIs reach the underbanked, analysts told CUToday.info. The best part: it likely won’t cost more money to develop and deliver services on that platform.
Lou Grilli, AVP of product development and thought leadership at Trellance, said 5G will provide a big boost to mobile banking apps, as many more sophisticated services can be offered.
“Currently, the typical credit union mobile banking app is limited to fairly basic functions, with some credit unions starting down the path of more complex operations such as digital loan originations,” said Grilli. “Education and explanation become more important with bigger financial transactions. Explaining a four-year versus a six-year auto loan—or a fixed versus variable rate mortgage—is difficult and boring in text. However, a short animated interactive clip could help the member make a more informed decision as to the monthly payment amount versus total interest paid over the life of the loan. 5G’s speed will permit this.”
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