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5G banking and
multi-access edge
computing can
drive financial
data aggregation

Author: Satta Sarmah Hightower

Emerging technologies like artificial intelligence (AI) and modern network connectivity solutions such as 5G and multi-access edge computing (MEC) can transform how companies use data to deliver services.

This is especially true in finance. Financial services companies collect a massive amount of data, from financial transaction data and payment card information (PCI) to other sensitive data such as customers' names, addresses, Social Security numbers, account numbers, passwords, and credit and spending histories.

Financial data aggregation has become common in the era of mobile banking, personal finance apps and AI-driven virtual assistants that provide information about someone's current financial picture via a simple voice command. For financial services companies, financial data aggregation may be the key to driving more business value from your data, giving consumers a better understanding of their finances and how your company's products and services can best meet their needs.

What does it mean to aggregate data?

So, what does it mean to aggregate data? Financial data aggregation describes a process in which financial institutions or third-party vendors bring together and organize disparate financial data from different sources. The data is then securely transmitted to other systems for different use cases, such as powering a bank or credit union's mobile banking app or third-party budgeting, investing or lending app.

Financial data aggregation allows companies to deliver more self-service and customized solutions to customers. This approach has gained more prominence in recent years due to open banking and the willingness of consumers and businesses to share their financial information in exchange for better service.

Though large financial institutions can build their own aggregation capabilities, there's been a rise in third-party financial data aggregators who specialize in this approach. They are using technologies like AI and application programming interfaces (APIs) to automate data collection and connect to different systems once financial institutions securely share their data sources to these technology partners. Financial institutions and financial technology companies can then use this data to provide different financial services and solutions to consumers or business banking customers.

Financial data aggregation has become an indispensable capability for financial institutions that want to maintain their competitive advantage and deliver a compelling customer experience. Customers now expect to access and receive information in near real time. Consumers and businesses also want to feel empowered to make better financial decisions. Manual processes, slow-performing websites or apps, and the limitations of in-person banking don't give customers the choice or flexibility they need to better manage their finances. However, effective data aggregation gives financial institutions the ability to deliver an omnichannel experience that meets customers' increased expectations.

How MEC and 5G power financial data aggregation

5G and MEC are two powerful networking solutions that can bring advanced, high-performing wireless connectivity to businesses.

5G, or fifth-generation wireless technology, can enable network reliability and faster data transfer, allowing companies to transfer data from one source to another securely and with lower latency. Multi-access edge computing is a type of network architecture where cloud computing, storage and networking resources are extended from centralized data centers to the network edge. Together, these technologies allow companies in data-intensive industries like financial services to generate more insights from their data and harness it to improve their solutions and services.

When it comes to producing results, what does financial data aggregation mean for your business? It means when a consumer logs into a mobile banking app, they don't have to wait too long to access a dashboard that gives them a holistic view of their current financial situation. It means a small business owner can easily access online reports with cash flow and spending projections or easily import their account information and apply for a business loan using a third-party lending app. It means a family using a third-party budgeting app doesn't have to go through a cumbersome, manual process to connect their different bank accounts to the app and understand their historical spending patterns. It also means financial institutions can access real-time insights about how their customers use their solutions and use these analytics to address customers' pain points, improve their products and deliver more personalized service.

5G-enabled financial data aggregation can transform how financial institutions serve both consumers and commercial banking clients. It can turn data into a powerful tool your company can use to drive more automation and better service delivery across your enterprise. Along with rigorous security protocols, these technologies can allow you to put relevant, timely financial information at your customers' fingertips, empowering them to make better financial decisions and allowing your business to capitalize on emerging technologies to deliver a better banking experience.

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