Page 43 - Banking Finance April 2023

ARTICLE

blockchain technology in banking which will strengthen
function like trade finance, asset tracking, digital identity
and cross border payments.

5G vulnerability
Any new technology comes with incumbent risks. The
increase in bandwidth will see an enormous flow of customer
data flowing through the network which will increase the
responsibility and burden of the bank to protect customer
data and they will have to review and strengthen their
existing data procedures. Banks need to have modern IT
infrastructure otherwise they will be overrun by data.

Faster speed, a tidal wave of new devices and unlimited
connections bring along with it many security challenges
which will make managing 5G security much more difficult.
The amount of data traveling via financial networks could
Data is oil today and banks have huge volume of customer
become a hotbed for people with malicious intent. With
data. Immaculate data transfer capabilities and lightning
millions of connected devices, larger and more dangerous
speed of 5G will help banks in data (both behavioural and
attacks are possible.
financial) mining to target customers with highly
contextualised advice and better product recommendation.
There is increased risk of more sophisticated botnets, privacy
AI will get a real boost with 5G technology. 5G allows large
violations, and faster data extraction as IoT devices are
volume of data processing on cloud which may reduce banks
inherently insecure. Each insecure IoT device on an
dependence on apps. Cloud based products and services will
organization's networks represents another potential hole
be more efficient and reliable. Immersive and engaging
exposed to an attacker. All these vulnerabilities require that
customer experience will become a reality with 5G. Using
a more robust and next generation security support will be
virtual reality and edge computing customers can virtually
needed for 5G. 5G will increase the vulnerabilities in 4G
visit the branch as edge computing will bring networks closer
devices as it is expected to co-exist with 4G.
to user application. Faster movement of data and enhanced
connectivity will boost close cooperation between banks and
All Stakeholders will Benefit
fintechs.
Banking is sitting, today, on the cusp of another revolution
Security and fraud detection will be more efficient as led by Edge technology and 5G network. 5G will prove to
security vulnerability and fraud will be detected real time. be catalyst and help banking in quality digitisation. With 5G
Repairing of security flaw across apps, websites, payment banks can sharpen their strategy, system and procedure to
gateways and wearables is possible without any down time. meet customer expectations which has undergone a sea
Biometric checks will become more sophisticated, moving change over the last decade. Artificial intelligence, analytics,
from fingers to faces, voices, and behaviours. Today banks personal financial management software, internet of things,
are dependent on one type of biometric authentication but voice banking, banking as a service and fintech innovation
5G will enable multidimensional biometric security all will get a boost from 5G.
procedures viz. facial recognition, physical characteristics
Digital banking will evolve faster by leveraging 5G to become
and geo locations etc. to give instantaneous verification of
invisible and intuitive banking and banking will smoothly get
customer. Identity frauds in on boarding and account
embedded in other daily activities. However, banks will have
operations will be reduced with Video-based KYC along with
to align their digital infrastructure with the requirements of
continuous voice capture.
5G which will cost them significantly. Despite willingness of
Block chain transactions are complex due to their encrypted banks to adopt 5G as soon as possible, the benefits of 5G will
and distributed nature and take a while to process. Higher reach consumers only after a sufficient coverage has been
speed and bandwidth will enable widescale adoption of achieved which does not seem possible before 2025.

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