The extreme remote areas in the world lack proper access to internet facilities. They have very low internet speed due to which they cannot use important features of the banking system. Now the issue can be solved by using 5G technology and organizations are working over it that allows offering better internet services to customers.
Standard Chartered Bank mentioned the launch of next-generation wireless network ‘5G’ will significantly improve the user experience when implementing primary services of banking in extremely remote areas. The banking operations are currently hampered due to low internet speed and also due to huge tariffs on banking applications.
Head of retail banking at Standard Chartered UAE, Sonny Zulu mentioned,
With 5G, we expect more real-time interactive engagement between the clients and the bank … adding many new services on our digital platforms.
The fifth- generation wireless network ‘5G ‘will be 100 times faster than the 4G network. Throughout the world, 3.6 billion users access 4G internet services through mobile.
Zulu stated, Banks are allowed to install 5G- enabled virtual kiosks at any location, completely a wireless network and does not require any physical infrastructure. With this technology, banks can connect to unbanked customers more effectively, and more customers will be able to use regular banking services across the remote regions.
The 5G technology will guarantee new opportunities within the banking system, for instance, chatbots with two features audio and video, real-time interactions with digital relationship managers, facial authentication, products, and services video demos and automated teller services in mobile phones.
Gartner- US researcher revealed the report in January 2019 that mentions, two –third of leading companies across the world consider of deploying 5G services by 2020 because of its speed that allows news firms such as remote operation via real-time video streaming- wherein doctors residing at various locations can communicate via live video and enhance independent transport.
The 5G technology is deployed within the financial sector will benefit significantly as the technology assures high returns.
If the financial and insurance sector adopts 5G technology, then their economic activity might be valued at $676 billion by 2035, IHS Markit estimates mentions.
Standard Chartered is planning to adopt 5G technology in the near future and hence is thinking of partnering with FinTech (Financial technology) companies. The Standard Chartered revealed 10 percent growth in its Q1 profit.
SC ventures subsidiary of Standard Chartered that was established in 2017 is gaining minority stakes in financial technology via an innovation investment fund of $100 million. SC Ventures has supported FinTech companies such as Paxata and Ripple.
Zulu mentioned, Fintech companies provide amazing innovations and will assist in offering better banking service experience to its customers. The UAE’s Central Bank and the Telecommunication Regulatory Authority needs to offer regulatory guidelines for Standard Chartered, and the bank is waiting for it so as to execute 5G technology within its primary banking operations.
Zulu stated, wearable devices and connected devices a positive area for adopting 5G technology within financial services in UAE, which allows easy and quick transactions ‘on the go.’ Exchanging a significant amount of information in real time will enhance fraud prevention, allows banks to scan transactions and identify anomalies quickly.
These devices [wearables] could share relevant data with financial service providers and with each other – potentially with even more reliability and lower latency than ever before.