Why FinTech needs 5G

5G UK | By Jamie Carter

5G bolstering fintech networks - Why FinTech needs 5GWill 5G change the banking industry? Financial Technology – usually known as FinTech – definitely is. It's going to change how we spend, how we save, and how we buy financial services.

It’s a realisation among hundreds of start-ups that software and modern technology can be used to sell financial services such as payments, investments, loans and money transfers in a way that seems natural to millennials and other consumers used to doing everything on their phones and tablets.  Fearing a huge disruption to their business by agile, flexible start-ups, the big retail banks are rushing to embrace all kinds of FinTech techniques fit for the mobile age.

Why 5G?

Why does this new wave of natively mobile and digital banking needs super-fast 5G? Surely it would all work perfectly well on 3G and 4G networks?

5G's critical role in FinTech is not really about speed. When 5G networks go online in the early 2020s, we should see smartphones capable of super-fast downloads of over 1Gbps. As 5G spreads, that could rise exponentially, hitting download rates of 20gbps and upload rates of 10gbps.

However, 5G is as much about ultra-low latency as about speed. Defined as the time it takes for a device to send a command to a remote server and get a reply, latency looks set to reduce from 50 millisecond (ms) on a 4G phone to under 1ms in the 5G era. So at the very least 5G will bring a lightning-fast real-time user experience to mobile devices, so much so that consumers will experience banking and payment transactions instantly on their device. 5G will mean zero waiting time.

See: 

That will become more important in the short-term as the use of third-party application programming interfaces (API) within banking grows, with third-party apps gaining access to banks' databases to make transactions.

However, the two buzzwords in FinTech at the moment are cryptocurrency (peer-to-peer electronic digital currency) and blockchain (high-integrity databases whose contents cannot be tampered with without leaving evidence, and while both are of great interest to banks, neither cryptocurrency nor blockchain particularly need 5G's ultra-low latency or increased data rates. However, 5G is three different technology stacks, and all FinTech will certainly benefit from is 5G's primary use-case; connecting more devices at low power, at low cost, and with high reliability. This should lead to a surge in the number of connected devices, from smartphones, wearables and home appliances to sensors on all kinds of objects, public infrastructure, and even clothes.

This is the Internet of Things (IoT), and 5G is expected to supercharge its development.

With the IoT in place and growing, payment technology will surge on the back of wearables. As well as driving internet use generally, the IoT will enable not only a denser concentration of wearable devices in a geographical area, but will link them. Whereas we now have Bluetooth, RFID and many other short-range communications standards that keep devices disconnected from one another, 5G will bring unity. Phones, smartwatches, earphones, activity bands, virtual/augmented reality headsets, flexible sensors on smart clothes, and smart glasses and eyewear like Google Glass will talk to each other, and swap data. That will enable payments to be made from any wearable. Plus, since all of those devices capture biometric data, the sharing of that data among them and with the cloud will create a powerful feature for FinTech; multi-layered authentication of the wearer.

Mobile Trading

5G will also create a new ear of high-frequency mobile trading that will revolutionise stock market transactions. Speedy buying and selling is everything in the stock exchange, and fractions of seconds can make huge differences worth millions of dollars a year. Given today's computerised and automated trading, 5G's reducing of latency to 1ms will prove irresistible to brokerage firms, so much so they will likely be among the first to install 5G's microwave radio links.

That's not to say that there aren't potential use-cases for using 5G's super-fast data rates and ultra-low latency in FinTech for reasons other than creating faster user experiences. For now it's mere speculation, but with vastly improved download and upload rates, advanced security measures relying on more layers of data could be used, such as more in-depth biometric verification. Instead of a fingerprint sensor or face/gesture recognition taking place on the device, all smartphones and wearables will have a real-time link to the cloud, so much more finely-grained device security could take place there.

See:  Introducing the Convergence Ecosystem

Furthermore, if future devices offload all of their data – including files such as apps, photos and documents, but also multi-app data on payments and even geographical location – financial institutions could make use of 5G's reliable connectivity and exponential cloud computing power to develop new products. For example, banks could use artificial intelligence, cognitive computing and machine learning to develop personal banking assistants that scan all data in the cloud about someone's life and financial behaviour to produce a daily spending limit. This kind of 'robo-advisor' service is already happening in a blunter way in areas like portfolio management and investment advice, but a properly personalised and private banking experience may have to wait until the 5G era.

Continue to the full article --> here


NCFA Jan 2018 resize - Why FinTech needs 5G The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

Latest news - Why FinTech needs 5GFF Logo 400 v3 - Why FinTech needs 5Gcommunity social impact - Why FinTech needs 5G
NCFA Fintech Confidential Issue 2 FINAL COVER - Why FinTech needs 5G

BBC | Sep 16, 2019 Kickstarter has been accused of "union-busting" after firing three employees. Taylor Moore, the company's head of comedy and podcasts, tweeted that he and another employee were fired on Thursday, while tech and design lead Clarissa Redwine was fired last week. All three were heavily involved in the formation of a Kickstarter union this year, Mr Moore added. Kickstarter confirmed the employees were fired, but denied that it was because of their union activity. Mr Moore tweeted that he had worked at the company for six years. He said that when Kickstarter fired him they "offered me no real reasons, but one month's severance for signing an NDA" - a non-disclosure agreement. "I will not be signing it." "The union busting campaign that Kickstarter management is engaging in is illegal and wrong," he added. "It is an unforgivable abandonment of the values of an organisation that I have loved and served with my whole heart." Ms Redwine also tweeted at the company, saying: "I will not be signing your termination agreement containing a non-disparagement clause. You can keep my severance." See:  A Digitized Staff Compliance Platform is a Must-Have She added: "Kickstarter's management continues to state ...
Read More
kickstarter acused of unionbusting - Why FinTech needs 5G
FCA | Sep 11, 2019 Speech by Christopher Woolard, Executive Director of Strategy and Competition at the FCA, delivered at the Cambridge Centre for Alternative Finance annual conference, Judge Business School. Highlights: The UK has led the rest of the world with developments like the regulatory Sandbox, we are very proud of what has been achieved through it. Early engagement is incredibly valuable for monitoring, supervisory and policy purposes. Working with innovative firms helps us achieve a better bird’s-eye view, enhancing our understanding when the overall landscape is blurry and ­changing quickly. 'Stablecoin' is a term that has been widely adopted by industry, but we do not take it to be a distinct category of cryptoassets. Something labelled as a 'stablecoin' could sit within or outside of our regulatory perimeter. Note: this is the speech as drafted and may differ from the delivered version. See:  FCA confirms new rules for P2P platforms Last month, Facebook announced its plans for Libra, the stablecoin it is planning to launch in conjunction with a number of payment and tech firms. As has been widely reported, along with other regulators and central banks, we have been discussing their plans with Facebook. If this comes ...
Read More
Christopher Woolard2 - Why FinTech needs 5G
NCFA Canada | Sep 13, 2019 JOIN US ON A STORYTELLING JOURNEY EVERY FRIDAY. Sep 13: Funding is Female with Jill Earthy EP37 GUEST: JILL EARTHY, Head of Female Funders (Linkedin) HOST: Manseeb Khan, Fintech Friday's show host BIO:  Jill Earthy is an entrepreneurially minded leader who believes diversity drives innovation. As Head of Female Funders (powered by Highine BETA), she is empowering female leaders to become investors in early stage companies. Her background includes being an entrepreneur, supporting entrepreneurs in various leadership roles and working as Chief Growth Officer of FrontFundr, an online investment platform. She is a community leader and active mentor, currently serving on the national Board of Sustainable Development Technology Canada and as Board Chair of the Women’s Enterprise Centre in BC, and as Co-Chair of We for She. Jill was recently recognized by the Canadian Centre for Diversity and Inclusion award as a Community Champion, by Business in Vancouver as an Influential Woman in Business and by WXN as one the Top 100 most powerful women in Canada in 2019. About this episode:  On this episode of NCFA'S Fintech Fridays Podcast, our host Manseeb Khan sits down with Jill Earthy the Head of Female Funders. The talk about what ...
Read More
FF EP37 female funders 1 - Why FinTech needs 5G
TechCrunch | Kate Clark | Sep 12, 2019 Affirm, founded by PayPal’s Max Levchin, is said to be raising as much as $1.5 billion in a combination of debt and equity, according to people with knowledge of the company’s fundraising activities. Josh Kushner’s New York venture capital firm Thrive Capital is said to be leading the financing, with participation from the San Francisco outfit Spark Capital. Affirm declined to comment. Representatives of Thrive and Spark, existing Affirm investors, have not responded to a request for comment. Sources familiar with Affirm, which gives consumers an alternative to personal loans and credit by financing online purchases at point-of-sale, presume the round will be made up largely of a line of credit from a large financial institution, known as a warehouse facility. Affirm recently raised a $300 million Thrive-led Series F round in April at a valuation of $3 billion. Fintech companies focused on payments and lending, however, require a vast amount of capital to sustain operations. Those capital requirements coupled with the frothiness of the venture capital market justify this additional cash infusion. To date, Affirm has raised $1.03 billion in funding from Ribbit Capital, Founders Fund, Andreessen Horowitz, Khosla Ventures, Lightspeed ...
Read More
max levchin - Why FinTech needs 5G
Le Monde with AFP | Sep 12, 2019 Bruno Le Maire expressed his hostility towards this cryptocurrency project, saying that "the monetary sovereignty of states is at stake" Finance Minister Bruno Le Maire announced on Thursday (September 12th) that France was refusing to authorize the development "on European soil" of libra, the cryptocurrency that Facebook wants to launch in 2020. "Considerable financial disorder" "The monetary sovereignty of states is at stake," said the minister at the opening of a conference of the Organization for Economic Co-operation and Development (OECD) dedicated to the challenges of cryptocurrencies - without specifying, however, what concrete measures he wanted engage to prevent the spread of libra in Europe. See:  Facebook’s Libra Cryptocurrency: Everything We Know In his speech, Bruno Lemaire described as "systemic" the risks that could result from this "possible privatization of a currency (...) held by a single actor that has more than 2 billion users on the planet" . "Any failure in the functioning of this currency, in the management of its reserves, could create considerable financial disorders , " justified the Mayor, also fearing that the libra is replacing the national currency in the States where the currency is weak or ...
Read More
Bruno Le Maire Minister Finance of France vows to block facebooks libra - Why FinTech needs 5G
CNBC | Bob Pisani | Sep 10, 2019 Key Points The head of the SEC says more needs to be done to make it easier for companies to go public. Jay Clayton says his office is taking a “fresh look” at allowing Main Street investors access to the private capital markets. The head of the SEC says more needs to be done to make it easier for companies to go public and that his office is taking a “fresh look” at allowing Main Street investors access to the private capital markets. In a speech to the Economic Club of New York on Monday, SEC Chairman Jay Clayton said the lack of more IPOs and the inability of most of the Main Street investing public to access private markets was a “growing concern.” Clayton addressed what he called the “two segments” in capital markets: the public markets, and private ones, including private equity and venture capital investments. See:  The Solution To The Fintech IPO Shortage “Twenty-five years ago, the public markets dominated the private markets in virtually every measure,” he said. “Today, in many measures, the private markets outpace the public markets, including in aggregate size.” Clayton wants to make the ...
Read More
SEC jay clayton - Why FinTech needs 5G
Nesta UK | Rosalyn Old and Johnathan Bone | Sep 4, 2019 Earlier in May 2019, Nesta commissioned a report called 'Taking Ownership:  Community Empowerment through Crowdfund Investments' that looked at how community-led projects have the power to transform local areas socially, economically and environmentally and how institutions such as local governments, municipal authorities and foundations, can help community-led initiatives by making the most of new investment crowdfunding models (eg community shares and bonds). Key Findings Investment crowdfunding has been used to fund a broad range of local assets, including but not limited to, saving local shops and pubs from closure, creating new community centres and art spaces, and expanding leisure facilities and infrastructure projects. Potential opportunities in using investment crowdfunding for community-led initiatives include helping to fund projects that would otherwise struggle to access finance elsewhere, increasing the use of and volunteering for community initiatives, and strengthening local resilience and self-determination by bringing communities together to improve their area. The main challenges for community organisations raising money in this way include gaining access to assets to buy or use on a temporary basis, transitioning from grassroots fundraising to implementing a project and avoiding negative impacts on diversity and inclusion ...
Read More
taking ownership community empowerment through crowdfunded investment - Why FinTech needs 5G
NCFA Canada on behalf of our partner's Lending Loop | Sep 11, 2019 HAVE YOU EVER SEEN A CHESHIRE CAT SMILE? Well they deserve it. Back in October 2015, NCFA made this introductory video with Cato Pastoll, CEO and Co-Founder of Lending Loop, about a peer to peer lending marketplace for small businesses model that was new to Canada but was achieving significant growth internationally. The question and opportunity was back then:  why not here in Canada? A question that many of us ask ourselves, ask the community and point fingers at strict regulations and high operating costs.  Well fast forward several years and growth obstacles later, and the Lending Loop story continues to impress with their latest milestone of lending over $50 million to deserving small businesses to help them grow and expand operations while providing retail and accredited investors direct access to a wide range of lending and investment options, a robust community and the chance to strengthen Canadian small business - here here! The early vision... Brandon Vlaar, Co-founder and CTO of Lending Loop sharing their good news! CONGRATS to the entire Lending Loop Team for achieving this latest milestone.  We've 'got your back' and look forward ...
Read More
Lending Loop passes 50 million - Why FinTech needs 5G
NCFA Guest Post | Sep 9, 2019 The world was shook when online money was first introduced. Some people didn’t like the idea. They’d prefer having something tangible, something that they can actually see and touch to use as currency. Some people were positive about the new experience. They believe that it can certainly make life more convenient. But hey, we’re now in 2019 and online currency is still widely in use. In fact, its uses have expanded way more since it was first introduced (read more). One of the most popular and controversial of its time was BTC or Bitcoin. Even without studying cryptocurrencies, you’ve probably heard this term once or twice before. You may have come across it in the internet or someone may have encouraged you to try trading it. After all, when cryptocurrency was first brought to light, many people saw its potential in the trading market. And it has been making noise ever since. See:  New Regulatory Framework for Canadian Retail Payments Coming in 2019 At first, Bitcoin was surrounded with a lot of controversy – and of course, a lot of doubt. People were scared of exchanging real world money for something that you ...
Read More
digital tokens and coins - Why FinTech needs 5G
Holt Accelerator | Samah El Falah | Sep 11, 2019 Holt Deal Day event series are seeking senior representatives of financial institutions, or fintech investors and experts to attend Holt’s Deal Day, taking place at Vancouver (Sept. 20th), Toronto (Sept. 23rd), Waterloo (Sept. 27th), Montreal (October, 2nd). Don’t miss out on the opportunity to interact with eight up & coming Fintech stars who will surely make a difference in Canada and beyond. As an investor, corporate or expert interested in Fintech, our Deal Days offer you an insider’s view of the upcoming trends and current challenges the industry is facing. What do the Deal Days consist of? Coffee / Registration (30 minutes) Canada Fintech Presentation by Holt (15 minutes)  Presentation on the current Fintech Ecosystem. The challenges & insights we gathered about 3 core fintech areas: Cybersecurity/Data Protection, Wealth Management (including Digital Assets), & Lending. 10 table mini-breakout session (30 minutes) Detailed roundtable discussions surrounding one of the topics covered during the Holt presentation. Speed-Dating (2 hours and 30 minutes) You will have the opportunity to see the 2019 cohort pitch after being part of the Accelerator program for a month. Just like our Selection Days, each pitch will end ...
Read More
Holt deal days 2019 - Why FinTech needs 5G