What online payment will look like with 5G
The new standard of communication known as 5G is expected to be an excellent tool for online payments. The 5G network is going to make online payments cheaper and more flexible for clients. Let’s see how this new technology can impact the future of the financial sector.
5G, mobility and finances
Everyone who has a smartphone or other mobile device can make online payments, shop online or open a banking account. Once the 5G network is everywhere, it will boost the development of digital wallets and online payments much further. Given the superiority of 5G technology over the current standards, the information exchange between databases and mobile devices will be much faster than it is today.
5G will transform digital banking
According to the World Bank, about 1.7 billion people all over the world have no accounts in any kind of financial organization. With 5G, however, this situation will change, as the technology is capable of providing super-fast internet connection even in remote areas. As a result, fintech companies will be able to attract more clients with the help of better user experience, instant payments and other improved transactions based on 5G.
Expanded range of services
In addition to financial transactions like deposits, withdrawals, payments and money transfers, the 5G technology can support more sophisticated car loans and mortgages with less cost. Moreover, the fintech companies will be able to request data and analyze it in real-time. Therefore, they may want to offer clients new products and services, for example, hyper-contextual advice and instant recommendations.
Speed is also a crucial factor for forecasting by AI. Thus, loan issuers will be able to go beyond traditional ways to analyze potential customers and expand their clientele. The capabilities of 5G are so big that it can find even small pieces of information to increase the quality of analysis.
Better protection against fraud
5G is a powerful instrument to fight against fraud. The fast speed of the technology allows AI to effectively detect fraudulent activities at early stages. With the help of 5G, fintech companies can better process data, verify and approve transactions or review data in real-time. As a result, the number of potential errors can be significantly reduced. This protects both an entity and its client’s assets with no delays or idle time.
Consulting
Smooth streaming of high-resolution data thanks to 5G will also help financial companies to consult with their clients remotely via video conferencing. Given that 5G has a super-low signal delay, such a video call will benefit all interested parties with an unlimited number of potential devices connected to such a video conference.
Conclusion
Instant payments, updates in real-time and different integrations are just a small part of a variety of ways financial organizations can benefit from the flexibility and high speed of the 5G standard.
Financial entities will be able to conduct sophisticated processes in very little time. For example, they will verify all existing data about a customer at the very moment he applies for a loan. However, while traditional organizations intensify their cooperation with fintech companies in order to provide their client with new services, it is more and more clear that we are just scraping the surface of the giant potential of 5G. In other words, the image of financial services based on this technology is still being formed right before our eyes.
