40% of large enterprises will be integrating edge computing principles into their 2021 projects, up from less than 1% in 2017. By 2020, 100 million consumers will shop in augmented reality. By 2021, there will be $2.5 million per minute in IoT spending and 1 million new IoT devices sold every hour.Gartner
What is Edge Computing? It is a technology that provides data processing capabilities (‘computing’) as close as possible to the source of data generation and usage. For example, in a self-driving car, data collected from the car’s sensors are processed locally using edge computing resources in the car itself. Then the output is passed to self-driving units. This entire process is in contrast to cloud computing, where all the data is gathered and processed at a centralized location.
The performance of IoT applications often depends on latency and bandwidth. Nowadays, privacy and security have emerged as another critical dimension for the success of IoT applications.
There are various use cases of edge computing in banking. Some of the examples include:
- Payments through wearable (e.g., Apple Watch, FitBit, Barclay’s bPay)
- Connected cars that can pay for gas, car wash, tolls, etc.
- Mobile ATMs – connected cars with ATMs – can be requested by customers via a mobile app. These mobile ATMs can take deposits and dispense cash
The launch of 5G will further boost the deployment of edge computing. Ericsson, Australian service provider Telstra, and Commonwealth Bank of Australia are teaming up to explore 5G edge computing use cases and network capabilities for the financial sector by testing end-to-end banking solutions over 5G.