Edge computing is poised to transform financial services by reducing latency, improving the customer experience, and increasing security. It allows data generated by IoT devices to be processed closer to the point of generation, such as IoT devices, sensors, and mobile devices, rather than sending the data to data centres or the cloud.
At the Africa Fintech Summit, Bernard Wanjau, Data Center Solutions Specialist at Dell Technologies, highlighted the critical role of edge computing in transforming the banking industry across Africa. He emphasized the ability of edge computing to drive computing and data storage, emphasizing proximity to the source.
According to Wanjau, edge computing has enabled customers to access banking services faster by facilitating real-time transactions and faster response times. It has allowed for the quicker transmission of data between point-of-sale (POS) terminals and bank infrastructure enabling rapid authorization checks and reducing the time required for payment approval or decline.
Edge computing has also significantly improved the customer experience by reducing processing time and enabling a seamless process. The near real-time transaction verification and authorization result in faster checkout times. It has also enabled personalized banking experiences by facilitating real-time data analysis and processing at the edge. This empowers banks to deliver tailored recommendations, offers, and notifications to customers based on their preferences and behaviours.
It has allowed for seamless transactions by allowing banks to handle high volumes of transactions during peak periods without overburdening centralized systems. Furthermore, it allows for transactions even in situations where network connectivity is limited or temporarily unavailable as payment terminals can store transaction data and process it locally until connectivity is restored. This ensures that customers can continue making payments, even in areas with unreliable network coverage.
Edge computing greatly enhances security by processing sensitive data closer to its source, reducing the risk of data breaches and unauthorized access. This addresses the growing concerns surrounding cybersecurity and data privacy within the financial sector.