Commercial bank Shinhan Bank said Tuesday that it has joined forces with mobile network firm SK Telecom to develop financial services based on 5G mobile edge computing technology.

The mobile edge computing, or MEC, is a core 5G technology that helps reduce network latency and process data efficiently by installing small-sized data centers at base stations.

Through the partnership, the two companies will launch R&D projects to design advanced financial services based on the 5G technology, find new business opportunities in emerging segments, and jointly run support programs for startups in 5G, artificial intelligence and fintech sectors.

As part of their partnership, the companies will soon open a laboratory where they test 5G and AI-powered financial services before deploying them in the field. At the R&D lab, visitors can also have a first-hand experience of those financial services.

In addition, they plan to adopt SKT’s quantum cryptography solution, an encryption technology, in the bank’s mobile app, named SoL, to improve security.

The bank will continue trying to come up with differentiated financial services and benefits for customers,” said Park Woo-hyuk, deputy president of Shinhan Bank, vowing to utilizing its big data and AI capabilities to offer innovative services.

By Kim Young-won (wone0102@heraldcorp.com)