Finance is among the many industries that 5G technology has the potential to change. With its increased speed, reduced latency, and widespread connectivity, 5G has the potential to alter how financial services operate fundamentally. This paper found that the main contribution of 5G in the financial industry will be the improvement of the customer experience, the improvement of security, and the creation of new ideas based on the possibility of real-time transactions and connections. This article aims to create a vision of how the future of finance is with the help of 5G technology.
Real-Time Transactions: Speed and Efficiency
Probably one of the most essential features of this network is the fact that it can support real-time transactions. Dependence on current 4G networks results in slow and sometimes delayed transaction processing, particularly at rush hours. 5G’s improved bandwidth and low latency lead to almost real-time transaction processing. This is particularly valuable for:
Mobile Payments
Mobile payment systems will be quicker with the help of 5G and no delays for making a payment on the go. Consequently, the customer gains a faster and smoother experience hence the spread of mobile payments.
Stock Trading
When it comes to finance, timing is everything. Even microseconds can define the winner and loser in investments. Trading applications will be faster and more robust with 5G networks. This can translate to good decisions and, of course, increased profitability.
Cross-Border Transactions
5G will significantly enhance the efficiency of cross-border transactions by eliminating the time required for data processing to enhance efficiency and reduce the cost of cross-border payments. This advancement will benefit business people and buyers and sellers of products in the international market and the remittance.
Enhanced Connectivity and Customer Experience
With faster networks in place, they can provide services more effectively and tailored through personalization. Here’s how 5G will enhance connectivity in finance:
Internet of Things (IoT) Integration
The many enabled connected devices make the 5G network perfect for the Internet of Things. In finance, this term can refer, for example, to the need to make ATMs, point-of-sale terminals, and mobile devices a single network of interconnected systems. Banks can gather statistical information on customers' behavior through these devices and promptly offer corresponding services.
Augmented and Virtual Reality (AR/VR)
Banks and other financial institutions can offer AR/VR-enabled 5G services. For example, customers could walk around a branch in a virtual world, view account balances and transactions in an active form, or even receive financial advice in a virtual world.
Enhanced Video Banking Services
Video banking services boosted during COVID-19 will work even better with 5G. A fast connection will help conduct seamless video calls, improving the quality of contact between customers and bank representatives.
Enabling Financial Inclusion
It will be seen how 5G is capable of connecting the unreached and hence enhancing financial inclusiveness. 5G can also offer the network necessary for mobile money services in regions that have low Internet connections. It will increase the inclusiveness of effective financial instruments, which will stimulate the development of economic growth and provide equality.
