The comprehensive roll-out of 5G across the UK and the rest of Europe is due to be completed within the next five years, although many analysts agree there’s already a notable lag behind North America and Asia. It’s worth noting because the numbers are significant, with 5G’s arrival expected to drive a predicted US$700 billion in global business opportunities during the next decade. Of this, analysts expect around US$225 billion worldwide will come directly from analytics and real-time automation, powered by the 5G data explosion.
All banks, lenders, financial services providers, telcos and fintechs can directly benefit from 5G's adoption, as it will enable scaled-up connectivity to their customer base via even more devices. It’s predicted it will also set off an avalanche in the adoption of the Internet of Things (IoT), driving a surge in the number of connected devices - from smartphones, wearables and home appliances to sensors on all kinds of objects, be they public infrastructure or even clothes.
It’s also fair to say 5G is likely to have a direct impact on further empowering consumer-centric legislation like PSD2 (The Payments Services Directive 2), which is putting customers in the data driving seat by offering them a clear say in how personal information is shared and used by selected businesses. As a result, it will also become more important than ever for digital businesses to be able to plug into scalable machine learning and adaptable analytics platforms, as the use of third-party application programming interfaces (API) and third-party apps in driving the growing opportunities Open Banking offers consumers.
5G and the Data Explosion
As connectivity continues to expand at an exponential rate, payment and ID verification technology will surge. As well as driving internet use generally, 5Gs high-speed bandwidth will enable a denser concentration of devices within a geographic area, but it will also be able to seamlessly link them.
Phones, smartwatches, earphones, activity bands, virtual and augmented reality headsets, flexible sensors on smart clothes, smart glasses and smart eye wear will talk to each other, and enable the consumer the option of sharing their data with whom they choose. It will enable payments and related transactions to be made from any wearable. Those devices will capture biometric data, which will be shared between devices and with the cloud, enabling additional security features by offering multi-layered authentication for the owner.
Emerging 5G technology will also help to unlock a mass of insight and opportunities for a slew of industries. In banking, analysts predict remote intervention 5G will help support financial services to be even more precise with ongoing fraud analysis, monitoring of suspicious transactions, or sizeable data uploads to inform critical decision-making, thanks to super-fast connected devices.
Right now, despite the pandemic, is a priceless opportunity to join us in unleashing the power of analytics and AI to drive smarter data-driven business decisions at scale. Because Big Data is all about volume. It’s estimated that 2.5 quintillion bytes of data are created each day. As a result, there will be 40 zettabytes of data created by 2020 – an increase of 300 times on 2005. Larger companies are now obliged to handle Terabytes – and even Petabytes – of data. It's a massive challenge and one that is likely to swamp aging, legacy infrastructures of companies that don't invest or innovate. It’s a challenge we address every day for our strategic clients. To find out more about how we’re helping business handle Big data via the FICO Platform, simply click here.