Banking in the metaverse unlocking new possibilities?
The metaverse continues to see more use cases being developed for it. While it was initially meant as a virtual area for remote working, gaming seems to be the main focus currently. However, other use industries are also developing their products to be a part of the metaverse as well.
For example, the real estate and fashion industry are already looking into how they can market and sell their products in the metaverse. Some clothing brands are even selling virtual clothes which users can purchase for their avatars.
According to a report by McKinsey, over $120 billion has already been invested in the metaverse so far in 2022. The metaverse also has the potential of generating US$5 trillion in value by 2030. In fact, 79% of active customers have also made a purchase on the metaverse.
Despite concerns by some large companies like Meta on their spending on the metaverse, the reality is the opportunities in the metaverse are just too big to ignore. As such, more industries will want to be part of it.
Banking in the metaverse is now becoming the next big chapter in the metaverse. According to an article by Accenture, banking in the metaverse are in the best posting to add value to the emerging metaverse economy. Apart from enabling Augmented Reality and Virtual Reality technologies to reimagine the banking experience, banks could also deliver advice and build relationships at a time when banking has become commoditized and drained of emotional salience.
“The metaverse could put humanity back into the conversation in ways that would simply not be possible with in-app alerts or text messages. Banks in the metaverse will benefit from a host of new opportunities—from providing the payments rails that power transactions in the virtual world and reimagining transactions for a 3D world to engaging with employees in new ways, attracting young talent, and finding new, more human ways to connect and engage online with their customers,” stated Accenture.
So how does banking in the metaverse work?
In February this year, JPMorgan Chase became the first bank to open a lounge and office in the metaverse. In May, HSBC announced that it would be the first global financial service provider to enter the Sandbox metaverse. In Southeast Asia, DBS Bank has partnered with the Sandbox to create DBS BetterWorld, an interactive metaverse experience showcasing the importance of building a better, more sustainable world, and inviting others to come alongside.
Several banks in India have also launched services in the metaverse, with some offering a fully immersive banking experience to customers. The state-led Union Bank of India launched a Metaverse-based virtual lounge where it will showcase its products to customers virtually, it said in a release. The lender is the first Indian bank to open a virtual shop for publicity.
Now, to ensure a seamless immersive experience for banking in the metaverse, the design and concept would need to use cutting-edge technology. As such, banks would need to work with tech vendors that are able to help them achieve this.
Kiya.ai’s kiyaverse platform for example empowers banks to have their own metaverse that can personalize customer interaction. The kiyaverse pioneers use cases of merging real-world banking with metaverse banking through an avatar. Simply put, it is not just a lounge in the metaverse. It allows banks to extend their own metaverse to their customers through various services.
Technology like these can only help banking in the metaverse provide a full banking experience to customers. Perhaps then, banking in the metaverse may have a proper use case and will see increased usage and demand by customers.
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