Four big ways 5G technology will change banking

Next-gen mobile communication service will directly benefit financial institutions' ability to improve customer experience and speed the process of digital transformation. With deployment of the technology slowed slightly by the coronavirus, now is the time for banks and credit unions to develop their 5G strategies.

The buzz about the global implementation of 5G has been going on for years now, with very high expectations and even some controversy taking place along the way. But even though full deployment takes time, it is certain that 5G will change many social and business interactions, including banking interactions.

While the COVID-19 crisis has slowed down the deployment of 5G technology in some areas, namely in Europe, the U.S. has experienced less significant delays, The Verge states Nonetheless, the implementation will continue — with 71% of surveyed mobile operators already rolling out 5G networks or planning to do so within a year and a half. And 45% of those operators have assured that commercial deployment is the goal they are motivated to reach quickly, Intelligent CIO reports.

Further, as of May 2020, 42 countries have at least one or more 5G services meeting worldwide industry standards. Moreover, 386 operators already invest in the technology in 125 countries, according to the Global Mobile Suppliers Association.

It is expected that consumers and businesses will generally pick up on 5G mobile technology much faster than they did 4G. Even the coronavirus will not prevent a global 5G subscription number from reaching 2.8 billion in five years, which will be around 30% of all mobile subscriptions at that time. The leaders by number of 5G mobile subscriptions in 2025, according to Ericsson, will be the U.S. (74%), North-East Asia (60%) and Western Europe (55%).

 

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