Why is the banking industry considering metaverse

Banks hold on to the hope that in the future, customers will conduct their banking transactions through digital avatars, rather than via traditional channels like phone or online banking. While it remains to be seen whether the banking metaverse will catch on among consumers, the technology does have the potential to revolutionize the banking industry. Let’s see the reasons why.

What is banking in metaverse?

Metaverse is a virtual world that allows users to create an online persona, or avatar, and interact with others in a simulated environment. The metaverse is the next step in the evolution of the internet experience, allowing users to go beyond web browsing and engage in or even inhabit a shared experience that ranges from the actual world to a fully virtual world and all in between.

The banking metaverse is the handling of financial transactions in virtual settings. Users in the metaverse can build and personalize their own avatars. Metaverse is a virtual environment that offers an immersive experience.

The metaverse is a place where individuals can come together and communicate, and where digital assets (land, buildings, objects, avatars, and even names) may be generated, purchased, and sold. It is built on technologies like augmented reality (AR), virtual reality (VR), and the blockchain.

Benefits of the banking metaverse

Redefine existing customer and staff interactions

Banks will be able to build 3D consumer and employee experiences using AR and VR technology.

Customers can use AR/VR channels to check balances, pay bills, transfer funds, and deal in the metaverse.

Regarding employee encounters, the technology provides immersive learning experiences in the safe context of simulated customer environments, or onboarding remote workers in ways that foster enjoyment, connection, and a feeling of community.

New ways to interact with customers

Banks may reinvent how they interact with clients by providing individualized advice, providing sympathetic service, and fostering trust. Customers could interact with an avatar at home or go to a physical location that provides metaverse experiences.

Personalized interaction: Offering high-touch assistance to customers looking for high-end products. Personalized financial counseling, such as virtual annual portfolio analyses, financial planning meetings, and mortgage product recommendations
Marketing and brand extension: Including virtualizing common brand interactions such as ATM withdrawals, branch placement, branding, and endorsements. Also, making environmental, social, and governance credentials more vivid and passionate.

Create new products and services

Banks can use unique financial products and services to tap into the banking metaverse’s developing economy as a source of growth.

Digital payments: Secure wallet functionality and payment rails for metaverse products, services, and economies are made possible by digital payments.
Digital assets: Banks can expand their function as custodians of their customers’ assets into the metaverse by safeguarding, insuring, and lending against bitcoin, NFTs, and virtual real estate.
Digital twins: The creation of a virtual twin for an asset or property, such as a home or a bank branch. Instead of viewing 2D photographs and video, imagine touring a flawless VR simulation of a home you might be interested in purchasing. A bank representative may utilize the digital twin to underwrite the loan.

To conclude,

The banking industry is in a unique position to take advantage of metaverse technology. If you are interested in learning more about how your institution can benefit from this exciting new frontier, please do not hesitate to contact us for more information. Our team would be happy to discuss the possibilities with you and answer any questions about the banking metaverse that you may have. Thank you for reading!

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Hannah Nguyen