Fifth Generation (5G) networks are the next evolution in mobile technology. Offering speed improvements of up to 20 times faster than existing standards, and improved stability and network latency, 5G is set to revolutionize the way we work, travel, and communicate. However, when 5G launches will organizations be ready for the significant disruption this new technology will have on traditional business models?
5G promises to resolve the current issues that plague existing mobile networks. Current platforms are becoming clogged as the world’s appetite for data increases exponentially. 5G not only promises much faster speeds but also addresses the issue of network congestion as it is much better at managing thousands of devices simultaneously. These 5G features will provide the platform for financial organizations to deliver new and innovative mobile services consumers demand. The new technology will also revolutionize the way other industries interact with and depend on the financial sector.
5G Will Impact Multiple Industries
The increased speed and efficiency expected when 5G networks launch is expected to impact a wide variety of industries. This evolutionary shift in networking technology will make 5G an excellent platform for many new solutions. It will give operators the capability to control multiple devices and its promise of low latency. Latency is the ability to process a very high volume of data with minimal delay. The feature will provide consumers with the enhanced user experiences they demand.
However, the promised speed and efficiency of 5G will disrupt businesses by introducing new technologies. For example, Augmented Reality (AR) and Virtual Reality (VR) are currently expensive technologies. 5G is capable of dramatically reducing the cost of an AR or VR solution by instantaneously offloading complex high-end computations to the cloud.
Similarly, applying this computing model to other on-premise or on-device workloads means that 5G has the potential to decrease costs for a wide variety of endpoint solutions. For instance, wearable devices are expected to become ubiquitous, which will create an additional channel for financial services to interact with their customers. However, this new distributed-solutions model may reduce the cost of edge devices, but this shift is expected to increase the demand for cloud computing resources exponentially.
5G Will Be A Significant Disruptor
The ability to connect thousands of devices to a network simultaneously means disruptive technologies that require multiple, high-speed, low latency connections will mature. In the financial services sector, this will mean an exponential increase in the amount of data that they will be able to collect and analyze to create new products and enter new markets. Internet of Things (IoT) solutions and autonomous vehicles like cars, trucks, and drones will thrive on 5G networks. The throughput will provide even more data to financial services to better target new markets. The expected impact on insurance alone could lead to far more accurate costing and predictive actuarial models.
Other industries that require immediate and hypersensitive control over remote devices will benefit from 5G. Examples include innovative technologies like telehealth, where doctors will be able to operate on a patient remotely using a robotic arm. Although this technology may not be directly applicable to banking and finance, it will provide the platform for “smarter” customer service branches, where automation will enhance the retail banking experience. The expected high-speed and low latency features will also enable consumers to bank and make payments instantly on their mobile devices, which will impact the existing Point of Sale (POS) industry.
The evolutionary shift in mobile networking 5G promises will have a tremendous impact on existing, and emerging technologies. With the potential to increase the revenue across all industries of up to $12.3 Trillion, 5G’s impact will not only be technological but economic. Solutions that have not been possible due to the relatively low speed and low latency of current 3G and 4G networks will introduce a new wave of innovation which will require the creation and production of new devices. Furthermore, upgrading existing smartphones, tablets, and other equipment that rely on embedded mobile connectivity will also increase production outputs. This exponential growth in production will require investment and funding that must come from the financial sector.
The launch of 5G is imminent with multiple telecom providers across the world already implementing localized solutions. However, the expected impact of 5G will only make its presence known in 2020 due to the infrastructure rollout required. That means organizations have a very tight timeframe to make the necessary adjustments their businesses will need to thrive in the new high-speed digital era.
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