Better experiences for consumers, better data for banks

Introduction

The fintech industry is moving rapidly towards digitalisation, currently facilitating online transactions, contactless payments, online account opening and online mortgages. Banks across the world are also trying to digitalise their services and are launching new innovative products to make banking easy for customers. Facilitating banks to provide their customers with flawless, lightning fat experiences and exceptional response times, 5G has the potential to revolutionise banking.

According to recent research done by AT&T and IDG, 81% of financial institutions have made technology changes at the corporate and/or branch level in recent years. Such a fast rate of new technology adoption indicates that either they are performing trials of new technology or they have in their roadmap.

Benefits of 5G for financial services:

5G technology will fundamentally enable new business models through extended bandwidth and coverage, accommodating ultra-low latency and usage-based service requirements. 5G enables devices to consume data at even higher rates and in short order, speed becomes the value play. It introduces a versatile, adaptive and programmable connectivity engine with the following capabilities:

• Latency: Roundtrip latency under 10ms
• Bandwidth: Data rates reaching Gbps
• Reliability: Provides 5 nines network reliability
• Mobility: Seamless data transfer between access points
• Security and fraud detection
• Enhance customer experience

Opportunities for financial services:

Consumer experience benefits:  5G will allow banking customers to engage with financial institutions over high-definition video conferences and solve their queries in real-time.

• Reimagining the physical branch experience: Bank branches can be converted to smart branches with 5G. By allowing banks to easily implement technologies like video analytics, VR, AR, and facial recognition, 5G could enable better branch monitoring and customer identification.
• Popup branches: Pop-up branches or micro branches staffed by a few employees help take banking services to remote locations or new locations to innovatively connect with new demographics. The infrastructure is portable and compact and can easily be transported where needed. All it needs is fast networks and connectivity, both of which 5G will deliver.
• Security and fraud prevention: Security vulnerabilities identified by banks can be updated in real-time without interrupting customer services. The high speed and receptiveness of 5G would enable multidimensional biometric security procedures that combine elements like facial recognition geolocation and customer’s physical characteristics in real time to deliver instantaneous verification.
• Instant loan processing: Processing of loans takes up to months with no real-time transparency to customers. Our 5G with high-speed, & real-time data through EMBB & URLLC would provide faster end-to-end cycle time, from applications to credit checks to financing & would allow AI/ML integration to improve the accuracy of lending decisions.
• Servicing through AR/VR: Banks aim to provide a better user experience by leveraging technological innovation. Our 5G Network backed by URLLC & EMBB would assist AR/VR to provide visual holograms, personalised offers, & intuitive account handling. MMTC would ensure that all devices are seamlessly connected to the network & work in tandem.

How to get strategic value from 5G?

Tata Communications as a partner will help FinTech Enterprises to adopt the next-generation technologies during their digital transformation journey.

Assess:

• Assess key connectivity requirements and how the existing technology portfolio limits critical use cases
• Identify specific connectivity pain points for prioritised use cases, and analyse the problems associated with connectivity tech.

Identify:

• Identify the implementation model of a private 5G network.
• Devise a strategy for the enablement and management of private network identity.

Build:

• Build 5G use cases and solutions in close collaboration with the 5G ecosystem.
• Undertake pilot programs in tandem with organisations from the 5G ecosystem.

Adapt:

• Adapt your connectivity strategy to changing digital transformation goals and 5G's evolution path to maximise ROI.
• Continuously adapt connectivity strategy by analysing the upgradation cost and availability of specific 5G services (e.g., fine-tuned network slice) to maximise the ROI of 5G adoption by use case or location.

The way forward

The applications for 5G are dependent on access to the appropriate radio spectrum, a key consideration for any wireless technology. Be it a mission-critical public safety service or a business-critical industrial site, 5G wireless private networks – deployed either standalone or in conjunction with public networks – enable the use of wireless communication for critical applications, with stringent communication requirements for many use cases. The global 3GPP ecosystem secures cost-efficient, future-proof products and services for evolution. Through 5G critical wireless private networks, industries can faster realise key business outcomes. 

For more information related to Fintech Industry Solution and POCs, please reach out to us at <5Gnetwork@tatacommunications.com>