PaymentsJournal
No Result
View All Result
SIGN UP
  • Commercial
  • Credit
  • Debit
  • Digital Assets & Crypto
  • Digital Banking
  • Emerging Payments
  • Fraud & Security
  • Merchant
  • Prepaid
PaymentsJournal
  • Commercial
  • Credit
  • Debit
  • Digital Assets & Crypto
  • Digital Banking
  • Emerging Payments
  • Fraud & Security
  • Merchant
  • Prepaid
No Result
View All Result
PaymentsJournal
No Result
View All Result

The Challenges Facing Financial Services in the Era of 5G IoT

By Shreyas Shaktikumar
December 15, 2021
in Analysts Coverage, Emerging Payments, IoT
0
0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn
The Challenges Facing Financial Services in the Era of 5G IoT

The Challenges Facing Financial Services in the Era of 5G IoT

5G networks are finally here, so how can the financial services industry adapt to this remarkable technology? The key to answering this question lies in Internet of Things (IoT) connectivity, where everyday devices from personal wearables to household appliances can be connected to networks that can transmit vast amounts of real-time data. Five networks enable such levels of unprecedented connectivity and will create a scenario where increasing proportions of human activities will be conducted as an exchange of electrical impulses. As the technology matures and communication channels achieve high levels of security in compliance with established standards, financial entities can enter this space to offer innovative products for their customers. Boris Cipot, senior security engineer for the Synopsys Software Integrity Group, had this to say:

“In a decade, I anticipate paper money will have disappeared. In its place, payment methods via smart devices will be the standard, preferred payment method—even over and above card transactions. We’re already seeing many regions of the globe moving in that direction rather rapidly.”

However, this shift is accompanied with a series of challenges, including potential data rights violations and customer concerns regarding their individual privacy. The problem with big data management in its current iteration is that increased data collection places larger storage, management, and security burdens on companies, therefore increasing the likelihood of mismanagement and data theft. The promise of 5G is that data management will be replaced with real-time analysis of device input, significantly reducing the need for companies to store personally identifiable customer information on their servers. Additionally, the higher bandwidth and speeds of 5G networks will enable companies to transition to a streaming-based data management system, which will be more secure and reliable than current software infrastructures.

“Financial services providers have a huge opportunity to provide the seamless, secure, and personalized services that today’s consumers crave. But doing so will require a digital transformation. They will need to simplify their business and operating models to enhance customer service and structurally reduce cost.”

Overview by Shreyas Shaktikumar, Research Analyst at Mercator Advisory Group

0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn
Tags: 5gCustomer PrivacyDataData ManagementFinancial ServicesInternet of ThingsIoTReal-Time DataTheft

    Get the Latest News and Insights Delivered Daily

    Subscribe to the PaymentsJournal Newsletter for exclusive insight and data from Javelin Strategy & Research analysts and industry professionals.

    Must Reads

    mortgage

    The Rich Benefits of In-House Payment Systems

    July 9, 2025
    digital cards

    Beyond Plastic: Why Digital Cards Are the Future

    July 8, 2025
    What Premium Card Overhauls by Chase and Amex Reveal About the Credit Card Market

    What Premium Card Overhauls by Chase and Amex Reveal About the Credit Card Market

    July 7, 2025
    Rewire Acquires Imagen, Looking at Prepaid Cards for Migrant Workers

    Smells Like Team Spirit: What Makes Cobranded Credit Cards Work

    July 3, 2025
    uk banking outages

    New Continuous Strategies for Battling Account Takeovers

    July 2, 2025
    Fraud Monitoring

    What to Expect When Nacha’s Fraud Monitoring Rules Take Effect

    July 1, 2025
    payments

    Don’t Just React to What’s Next in Payments—Anticipate It

    June 30, 2025
    consumer debit

    As Payment Types Proliferate, Debit Cards Still Go Strong

    June 26, 2025

    Linkedin-in X-twitter
    • Commercial
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Digital Banking
    • Commercial
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Digital Banking
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    • About Us
    • Advertise With Us
    • Sign Up for Our Newsletter
    • About Us
    • Advertise With Us
    • Sign Up for Our Newsletter

    ©2024 PaymentsJournal.com |  Terms of Use | Privacy Policy

    • Commercial Payments
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    No Result
    View All Result