We’ve all heard that 5G is the next best thing and the tremendous enhancements it will bring to pretty much every aspect of technology and productivity. The key benefits and improvement that will accompany 5G are:
- Speed. 5G will significantly decrease the overall time it takes to download content, and load just about everything—video streaming, websites, data—much quicker.
- Lower Latency. 5G will ensure that the buttons we press and the commands we give, will be fulfilled faster. It will significantly decrease our wait time.
- Connectivity. 5G has the power to ensure a lot more users can simultaneously be connected in one area.
It’s safe to say that 5G will create significant efficiency gains for many organizations. But how will it impact financial institutions?
Read our full blog post below to learn more.
Is Your Financial Institution Ready for 5G Technology?
For several years we’ve been hearing about 5G, the benefits it will bring to our technology, and of course the competition surrounding it. Although the development and adoption has been interrupted by the COVID-19 pandemic, it’s well on its way and so are the benefits. It’s safe to say that we’ve all learned how vital reliable internet connection is to our daily lives. Many people have started working remotely and suddenly noticed a decrease in internet speed due to overcrowding in their area. A significant amount of essential services like banking and lending have moved into digital banking and digital lending and a slow internet connection is simply unacceptable.
5G is positioned to improve the functionality of SaaS-based technology and our daily lives, as we rely so much on the internet. But what exactly is 5G? According to Qualcomm, 5G is the 5th generation mobile network. It is a new global wireless standard after 1G, 2G, 3G, and 4G networks. 5G enables a new kind of network that is designed to connect virtually everyone and everything together including machines, objects, and devices. 5G wireless technology is meant to deliver higher multi-Gbps peak data speeds, ultra low latency, more reliability, massive network capacity, increased availability, and a more uniform user experience to more users.
One major benefit of 5G, is speed. At the current 4G internet speed (per Verizon data), it takes two minutes to download a video that is 600 MB. But if one were to utilize 5G internet it would only take 30 seconds to download a video of that size.
Another key feature of 5G is lower latency. 5G will improve the lag time between an action and the completion of the action. For example, the time it takes to play a video after the play button is pressed. It is said that the current delay time is 40 to 50 milliseconds and will decrease to around 10 milliseconds in 5G devices.
Lastly, 5G will largely improve connectivity. When the internet is overcrowded with devices it tends to perform slower or not work at all for some. 5G will allow for a million devices to be used in 1 square kilometer.
According to The Financial Brand, “It is expected that consumers and businesses will generally pick up on 5G mobile technology much faster than they did 4G. Even the coronavirus will not prevent a global 5G subscription number from reaching 2.8 billion in five years, which will be around 30% of all mobile subscriptions at that time. The leaders by number of 5G mobile subscriptions in 2025, according to Ericsson, will be the U.S. (74%)”. This is particularly exciting news for the financial industry as it heavily relies on complex technology that needs a lot of processing power and connectivity.
How Will 5G Improve Traditional and Digital Banking?
Financial technology, most importantly loan origination systems and new account opening software are extremely complex machines that require a lot of power to successfully operate. The preferred lending and new account opening technology is SaaS-based, which means the loan origination system and new account opening software is subscription based and can only be accessed using the internet.
The 5G features and capabilities are great news for lending and new account opening technology as it will enable the product to run faster, reduce processing time and will decrease the loan origination and open a deposit account opening time. Additionally, it will enhance the safety and security of the software by creating a better centralized connection for the provider to manage and provide any IT related services and timely updates.
The 5G features will enable the loan origination system to create an even greater efficiency saver for the financial institution, and promote process improvements within workflows that can result in significant operational cost savings.
One of greatest benefits that 5G may have is that on digital lending and online deposit account application. The speed and lack of delay will create that ultimate online lending consumer experience. Additionally, 5G will enable more complex loans and deposit accounts to be offered within digital lending, ensuring 24/7 connection for all banking needs.
The Adoption of Digital Lending
In recent months we’ve not only learned the importance of an online connection, but how vital it is to adopt digital lending and origination technology software and an online account origination system early on. Those who are still hesitant to offer their members and customers digital solutions to their banking needs may not be around for much longer.
Early adopters who have set into place digital lending and online deposit account applications are positioned for growth and further enhancements for their back end staff and an even better consumer experience for their digital borrowers. They will have an advantage when it comes to incorporating updates, enhancements, and new technologies that are powered by 5G. But unfortunately those who are hesitant to adapt to growing needs of the consumer and the digital world may be overlooked.
Our Digital Lending Solutions
MeridianLink is the leading provider of SaaS-based lending and new account opening technology for banks, credit unions, and mortgage lenders. We provide the technology that enables financial institutions to serve their communities with all of their banking needs in the most efficient way possible, both in-branch and online. Let's talk learn more about our digital lending and origination technology and services.