NEW YORK—It might be a few years until everyone is using global fifth-generation cellular wireless (5G) technology, but experts at Deloitte are predicting the new iteration of wireless could make an impact by the end of this year, especially in banking.
“While consumers will likely notice that 5G enables lightning fast downloads, connects millions of Internet of Things devices to one another, and removes the lag in their video chats, they may not realize that 5G will also be a key factor in enhancing their banking experience,” stated Forbes.
Below are five “surprising” ways that 5G will be a catalyst for an optimized, personalized digital banking experience in the years to come, according to Forbes.
The arrival of the high-speed, real-time data flow that 5G enables will help streamline cumbersome processes that often accompany big-ticket purchases. “Find a car at the local dealership you want to buy today? 5G can speed up the whole process—from application to credit check to personalized financing offer to approval and funds availability in one slick, end-to-end experience. Want to secure a mortgage? 5G will help streamline the digital application process.”
By leveraging the speed and capacity in this new wireless world, banks that invest in tools to combine artificial intelligence, data and 5G will be able to run many parallel processes in real time. In turn, it could improve the speed and accuracy behind lending decisions and will optimize lending rates to match each unique applicant’s reality, said Forbes.
“And thanks to 5G’s high-resolution streaming capabilities, customers will have real-time access to video consultations with financial representatives – both virtual and human – who can help them make informed financing decisions,” Forbes said.
“As 5G marches toward ubiquity, consumers will experience a newfound uniformity between their phone, watch, wearable and connected car—to the extent that they can rely entirely on digital payments,” Forbes forecast. “The ease of use combined with increased transaction speed and personalized offers will make mobile payments more valuable for everyone involved. As 5G enables even more value-added innovations, it could help increase consumer confidence in fully digital payments and help sway more tech-averse consumers to reconsider their payment behaviors.”
Less visible but equally important will be all the enhancements that 5G brings to other transactions made with a mobile device, Forbes said.
“For instance, because 5G allows more data to travel across networks in real-time, it will enhance proactive fraud prevention. As soon as a customer initiates a mobile payment transaction, banks will be able to more rapidly comb through data like geolocation, transaction amount, and the merchant ID to reduce fraud detection errors,” Forbes reported. “As a result, fewer legitimate mobile wallet transactions will be wrongly declined at the point of sale for (incorrectly) suspected fraud. In turn, banks gain the advantage of fewer irritated customers who stop using their card due to fraud prevention error,” Forbes said.
In a pre-5G environment, security vulnerabilities detected within an app require an update, often including manual intervention from the mobile app user. With 5G, banks can update and add enhancements in real-time, without bothering the consumer, the publication stated.
“The arrival of 5G will also promote increased use of multimodal biometric security measures that combine nuances like a customer’s gait and position in which he holds a mobile phone to make a payment to validate a mobile user’s identity,” Forbes explained.