Start-ups today realize that the software and modern technology can be used to sell financial services such as money transfers, investments, payments, and loans in a way that seems natural to millennial and other consumers on their phones and tablets. Financial institutions are becoming more mobile, many of which opt to work closer to FinTech providers to upgrade, retain and acquire new services. 5G’s debut promises to add another tool that can help these efforts.
The crucial role of 5G in FinTech really isn’t about speed. In early 2020, when 5G networks go online, we should see smartphones with super fast downloads of over 1 Gbps. As 5G spreads, this could increase exponentially, reaching 20gbps download rates and 10gbps upload rates. 5G will bring mobile devices a lightning-fast real-time user experience, so much so that consumers instantly experience banking and payment transactions on their devices. 5G is going to mean zero waits. The increased security and speed enabled by 5G will also revolutionize the capital markets, significantly reduce the settlement cycles and eliminate latencies with mobile trading capabilities in real time. 5G will also create a new mobile high-frequency ear, revolutionizing stock market transactions. Fast buying and selling are all in the stock market, and fractions of seconds can make enormous differences worth millions of dollars a year.
The two buzzwords in FinTech are currently cryptocurrency and blockchain, whereas both are of great interest to banks; neither cryptocurrency nor blockchain need 5G ultra-low latency or higher data rates in particular. However, 5G is three different stacks of technology, and all FinTechs will undoubtedly benefit from the primary use case of 5G, connecting more devices at low power, low cost, and high reliability.
Check out: Top Mobile Banking Technology Solution Providers(Change Financial Limited, COBIS, Ondot Systems, Tyfone)
Given the ever-increasing number of FinTech competitors, traditional banks must be on top of the changing dynamics if they want to remain profitable. The future of banking and the entire BFS industry is clearly digital, especially considering the intelligence and connectedness that will be a part of the IoT. The security features of 5G eliminate the need to carry multiple plastic cards and replace them with a single all-in-one digital wallet. Besides the banking industry, 5G will also bring about radical changes in capital markets and completely change the face of trade, including the settlement cycle.
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