5G in Fintech Market - Forecasts from 2023 to 2028

The 5G in fintech market is expected to grow at a CAGR of 75.56% during the forecast period.

The market drivers for 5G in fintech are: rising adoption of M2M communication system, which connects smart devices such as smart cars, machines, sensors, meters, consumer electronics, and others, and offers a better digital ecosystem; introducing a real-time user experience to mobile devices, which enables instant payments and other transactions in rural areas with high-speed internet; enabling better lending decisions and optimizing lending rates, which leverage the speed and capacity of 5G to develop new products and processes and match each applicant’s profile; accelerating push towards digitalization, which alters consumer behavior towards digital banking and leads to fintech firms building a touchless, safe, flexible and easy-to-use customer experience; and rising demand from telecommunication industry, which drives 5G technologies and transceiver market.

For instance, according to the report “2019 FDIC Survey” released by the Federal Deposit Insurance Corporation, mobile banking usage as the primary mode for accessing accounts by customers in the United States was 9.5% in 2015, 15.6% in 2017, and 34% in 2019. This represents the high consumer demand for digital banking, especially among young people. This can boost 5G in fintech, as 5G can improve mobile banking connectivity, speed, and security and enable new features like biometrics, cloud, and real-time data.

EMERGING OPPORTUNITIES FOR 5G IN FINTECH MARKET

HARDWARE, SOFTWARE, AND SERVICES

The 5G in fintech market is driven by digital payments, fintech innovation, enterprise use cases, the telecom sector, and 5G security. 5G can enable faster and more secure transactions, foster innovation and disruption in fintech products and services, unlock new opportunities for enterprises to leverage fintech solutions in various sectors, drive the growth of the telecom sector by increasing the demand for data services and network infrastructure, and create a need for robust security and privacy features to protect the data and transactions of fintech users and providers.

By component, the 5G in fintech market is segmented into hardware, software, and services. These segments of the 5G in fintech industry market are witnessing various innovations and collaborations from different players in the industry.

For instance,

• In November 2019, CCB launched "5G+ Intelligent Bank". The unique launch of application scenarios by CCB's 5G+ intelligent bank, which offers 327 functionalities for typical financial services and application scenarios, including smart teller machine (STM), financial capsule, robot, and home bank, will unlock new marketing services and reshapes the service process from the perspective of the complete customer experience.
• In April 2019, the Reserve Bank of India's (RBI) Institute for Development and Research in Banking Technology (IDRBT) established a 5G Use Cases Lab for the banking and financial sectors. The adoption of 5G will alter a variety of technologies and applications, consisting of point-of-sale devices in the banking industry that was using 2G. The 5G lab will establish a framework for research and development for banking and financial services and develop and domesticate 5G use cases. For the promotion of 5G and the adoption of best practices, it will also work with numerous stakeholders, including banks, the government, and financial institutions.

GEOGRAPHICAL PRESENCE

Some key developments related to 5G in Fintech sector across key markets are listed below:

• In June 2022, in the United Kingdom, Athonet, a world leader in private network technology, recently inaugurated its Fintech 5G lab in the heart of London's financial district to assist banks, hedge funds, financial institutions, and their technology partners in uncovering, build, and integrate highly secure 5G technology into their business, products, and operations.
• In May 2022, in Japan, SoftBank Corp. announced the establishment of a 5G MEC (Multi-access Edge Computing) facility in the Kanto region and the commencement of nationwide MEC server deployment in Japan. By deploying applications adjacent to user devices within the 5G SA network, SoftBank's 5G MEC enables consumers to experience low-latency, high-speed services and drastically reduces server access times.

MAJOR PLAYERS IN THE MARKET

Some of the leading players in the market include Ericsson, ZTE Corporation, and Broadcom, among others. The product offerings of the major corporation include the following:

• A fintech platform called Ericsson Wallet Platform enables financial service providers and telecom operators to provide their customers with quick, secure, customized, and user-friendly mobile financial services. The platform promotes financial welfare and inclusion by making it possible for all customers, whether they have a bank account or not, to send, borrow, and receive money.
• Broadcom offers Cloud Computing with PCI Express Switches that combine 5G NR features. The transition to 5G NR-based C-V2X will add new and complementing features for autonomous driving to Rel-14 while ensuring backward compatibility. It will combine 5G NR features, such as high throughput, decreased latency, and ultra-reliable communication capabilities, to support direct communications and enable enhanced use cases for autonomous vehicles.
• ZTE Corporation offers 5i Remote Banking Intelligent Customer Service application that provides a New Calling network. By utilizing the company's 5G New Calling network, it offers remote banking intelligent customer service that may deliver interactive, immersive, and novel services.

SEGMENTATION

The 5G in fintech market has been analyzed through the following segments:

By Application

• Branch
• Banker-Facing
• Customer-Facing
• ATM
• Others

By Component

• Hardware
• Software
• Services

By Geography

• Americas
• USA
• Others
• EMEA
• Germany
• UK
• Others
• APAC
• China
• Japan
• South Korea
• Others