According to the CBI, in order for the U.K. to continue attempting its digital revolution as we approach Brexit, action must be taken by the government to ensure that businesses are provided with the essentials required for success.
Outlined in the report Ready, Set, Connect, while the U.K. will welcome 5G by 2027 and full fibre by 2023, funding restraints and policy may result in a number of businesses suffer when trading internationally.
The CBI recommends enforcing laws that would ensure that every new property has access to gigabit broadband, all government infrastructure projects include full fibre broadband and hasten 5G adoption by raising awareness.
5G will speed up communication and connectivity, but what does this mean for the fintech industry, in which the concept of ‘real-time’ and how fast customers can manage their money and transfer their data securely is now at the crux of the sector.
Matthew Fell, CBI UK Chief Policy Director, highlighted that “if data is the new oil, then digital connectivity is the pipe that transports it. Seamless connections, from full fibre networks to 5G, offer unprecedented opportunities for businesses and consumers across the UK.”
In addition to speeding up payments, Fell’s comment about data calls into question how 5G could improve latency and as the usage of APIs grows in different sectors, third parties will be able to gain access to customer information from banks at a faster rate.
He continued to say that in a country that is home to a mixture of startups and tech giants – “the backbone of the economy”, digital needs to be unleashed in an environment where it is accepted.
“As a game-changing technology, 5G can also help raise UK productivity. Now’s the time to capitalise on the UK’s leading research base, become a global exporter of this technology and how to adopt it well.
“World-class 5G technology could potentially add up to £173 billion to the UK economy by 2030. Companies are going to rely on this cutting edge technology to supercharge their productivity and end the postcode lottery felt most by many rural communities.”
As I mentioned, it’s not just about speed, it’s about latency and reducing delay and in the mobile trading market, which in my opinion, has been one of fintech’s greatest success stories because it allows millennials and those who have not been educated about investing in stocks and shares to enter this area, 5G could be a critical technology development in industries like these where every second matters.
Fast data could also change how quickly identity is verified and providers could go from two-step to one-step if the correct security processes could be put in place, of course.