5G- Enabling the New Era of Digital Payments and Banking
The banking industry is on the cusp of another digitalized revolution led by 5G communication network. As the new infrastructure promises much faster internet speeds, lower latency, greater bandwidth, and the ability to handle connectivity to billions of devices, a world of possibilities for financial sector are yet to unravel. From ATM machines to online and mobile banking, the financial services industry has often been an early adopter of digital technology. According to research done by AT&T and IDG, 81% of financial institutions have made technology changes at the corporate or branch level in the recent years.
How 5G is set to Transform Digital Banking - Benefits
Transforming Payment Sector
With high speed and connectivity, 5G enhances and streamlines digital correspondence, payments. The quality of contactless payment services can improve and expand to a more sophisticated channels, such as wearable devices, IoT devices, and virtual reality – both AR and VR.
Improve service offerings
5G speeds allow banking institutions to process more complicated transactions like auto loans and mortgages with less overhead.
Improving Customer Experience
The adoption of 5G in the financial industry will be able to enhance their experience in accessing every available financial service in a more personalized manner. The use of big data supported by 5G also allows the financial services sector to personalize its services according to customer profiles.
An AI-first approach in banking helps data processing and consultation, transaction verification and confirmation, and enhances the ability to consult several data instances in real time helps to reduce errors like false positives.
Both clients and employees alike will benefit from ultra-low latency that 5G brings in thus allowing data to be sent and received in less than the blink of an eye.
Banking for everyone
5G speeds and connectivity allows consumers access to bank accounts and other banking services that are necessary to thrive in the current economy.
Implementing Digital Transformation in Banking – Challenges
· Evolving Away from Legacy Applications
Existence of certain legacy systems within banking sector isn’t conducive for introduction of digitalization. Many major banking systems, for example, are built using the COBOL programming language, which has been around for over 60 years.
- Solving Security Issues at Scale
Apart from securing social communication channels, the security of the IT infrastructure and all the data that is part of it, remains one of the biggest digital transformation challenges faced by banks today.
- Securing Social Media Communications
Social media is expected to be one of the primary sources of communication for customers, going forward. To accelerate client communications on social media, presents an array of digital banking challenges ever including security and compliance.
- Breaking Down Silos and Mitigating Risks
Since banks have always remained siloed organizations, it leads to stunted growth, limited scalability, and decreased customer satisfaction.
- Choosing Between Bricks-and-Mortar, Digital, or Both
Players in the banking industry must realize customers’ persistent need to visit physical branches as one of the challenges in implementing digital banking.
Steps to Thrive in Digital transformation in banking
- Embrace mobility
- Stay up to date with digital innovations
- Implement Smart digital solutions
- Multichannel services and human interactions
The global digital payments market is set to grow at 19.4% CAGR between 2021 and 2028 due to high adoption rate of smartphones, rise in e-commerce sales and explosion in internet activities across the globe. Research from the Bank for International Settlements found that 80% of surveyed central banks are engaged in central bank digital currency initiative, including both corporate and individual use cases.
Advantages of Digital Payments
- Security: Since card numbers are connected to individual purchases rather than the card itself, and each transaction is limited to the preapproved amount thus making it more secure.
- Control: Digital technology allows customers to limit payment methods to specific, preapproved transactions, instead of giving employees traditional physical cards.
- Visibility: By issuing separate card numbers for each purchase, finance teams have clearer audit trails and cleaner data.
- Less manual work: Digital payments technology reduces manual work by unifying the entire process into a single automated workflow.
As more financial institutions team up with fintech’s to provide customers with streamlined and connected banking environments, 5G is expected to foster a conducive environment for the same. With 5G’s digital payment applications, the future of banking is only just beginning to form.
As today’s, banking and financial services organizations require a strategy that focuses on customer experience, operational excellence, and distinctive differentiators powered by digital to survive in the uncertainty, InfoVision brings the full ambit of emerging technologies, cloud expertise, and innovation ecosystem to help them transform their operations.
We partner extensively to implement, secure, and scale continuous KYC and risk segmentation contributing to holistic behavior analysis. Our customers have leveraged these approaches and our capabilities to execute them and enhance security and customer satisfaction simultaneously.
- Digitalized Payments
- Mobile Banking Platform
- Digital Wallet
- Shared Loyalty Reward Program
- Commercial Banking
- Core Banking Upgrades
- Intelligent Operations
- AI-Driven Fraud Analytics
- Cloud Readiness
Drive bottom-line growth with a customer-centric digital strategy.
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