The world finds itself poised on the cusp of a new digital era driven by 5G and edge computing, allowing organisations to come even closer to true digital transformation. Financial institutions across the globe are eagerly anticipating the hyper-connectivity that 5G will deliver. How will 5G technology continue the development of the financial services industry?
Speed for IoT data transfer
5G will allow operational speed to increase, with data transfers up to 10 to 20 times faster than 4G. This allows real time data to be obtained and acted on through devices connected to the Internet of Things. IoT sensors can gather data that feeds financial services decisions and new ventures, informing actions and helping build cases for the latest in digital technologies. By 2025, there will be an estimated 11.4 billion consumer connected devices and 13.7 billion industrial connected devices globally.
Latency reduction for faster processes
5G will significantly reduce end-to-end latency (delays in transmitting, receiving, or processing data), thanks to the higher speed provided by 5G networks. 5G combined with edge computing will allow more efficient storage and accessibility of the massive amount of data handled by finance organisations, delivering a more secure system and faster processes. Australian workplaces are already seeing the value of these types of data driven technology, which are taking hold in the financial sector.
Massive connectivity for widespread adoption
5G has the capability to simultaneously support up to one million devices for every square kilometre. This allows existing technologies to become even more accessible to the finance industry, and drives adoption of the IoT, artificial intelligence and machine learning, as well as other Big Data related technologies. New innovations and technologically driven collaborations mean more agile finance functions, with more successful iterations.
Telstra and the Commonwealth Bank of Australia are already partnered on 5G banking trials, paving the way for further adoption across the industry. 81% of financial institutions have already made technological changes at, either or both, corporate or local branch levels over the past few years, and 82% of financial services firms have indicated their intent to use 5G to develop new customer offerings.
Embracing 5G will be a critical step in continuing to grow and maintain a competitive edge for finance organisations in the years ahead. Leveraging the potential and agility of 5G could be key to data insights that will propel your company forward into the brave new world of digitally driven finance.