Report says 5G will boost financial sector

The application of 5G technology in the financial industry will enhance the role of financial services in the real economy, promote the development of inclusive finance and accelerate digital transformation of the financial sector, according to a new report.

The report from the China Academy of Information and Communications Technology under the Ministry of Industry and Information Technology attracted participants including ZhongAn Fintech Research Institute.

The total number of global 5G users had exceeded 200 million as of September, according to GSMA statistics. The number of Chinese users exceeded 160 million, and is expected to exceed 900 million in 2025.

China had opened more than 690,000 5G base stations by the end of September, covering cities above prefecture level.

Among the many industries enabled by 5G, the financial sector pays close attention to its application, hoping to innovate in compliance, explore new business models and respond to possible cyclical development opportunities in advance.

On the other hand, under the influence of the COVID-19 pandemic, the digital transformation of the financial industry is accelerating, which requires financial institutions to actively adopt new generation information technologies such as 5G, the report noted.

With the support of 5G technology, financial innovation, risk-control capabilities, operating costs, e-business processes and other aspects will be significantly upgraded, which will eventually benefit regulatory authorities, financial companies and customers, the report added.

In insurance pricing, for example, ZhongAn Online P&C Insurance introduced more affordable auto insurance products by analyzing user driving behavior and data while encouraging car owners to establish good driving habits and obtain more favorable quotations.