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How Banks will operate in Metaverse?

Decentraland, The Sandbox, and Somnium Space are among the virtual reality spaces that make up the so-called “metaverse.” Some of them are primarily used to host video games. Others, such as Decentraland, are virtual worlds in which users create avatars that reflect themselves and engage in real-world activities such as house hunting and wedding planning. One of the first of these was Second Life, a virtual environment created by Linden Lab in the early 2000s. A few banks opened branches there at the time to assist consumers in managing their money while in the environment. The metaverse blockchain is a hit! There’s been a huge demand for certification in blockchain lately.

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Adding 3D functionality to your existing functionality

It took 15 to 20 years for the internet to make its way into banking. It took five to six years to develop the mobile phone. We can create a vast universe with the power to immerse clients as we move from 2D to 3D. Banks should think about how banking might work in a 3D environment.

It’s no surprise to see early industry explorers in this area, with 47 percent of bankers believing that clients will use augmented reality (AR) / virtual reality (VR) as an alternate channel for transactions by 2030. BNP Paribas has built a virtual reality software that allows clients to use VR in their banking processes, such as account opening, while Citi has tried holographic trading workstations.

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We also see tremendous opportunities to improve the employee experience. Employees are crucial in amplifying a bank’s brand and driving meaningful client connections. Immersive training, such as Bank of America’s implementation of virtual reality training for 50,000 employees, allows branch staff to recognize emotions and change behavior in a risk-free setting.

Creating fresh and meaningful ways to interact with your customers

While banking has gotten more utilitarian, it is still too emotionally disconnected. Ironically, the metaverse provides banks with a much-needed means to reintroduce humanity into banking and strengthen existing customer relationships by meeting them in more meaningful ways.

The metaverse also opens up new avenues for reaching out to new audiences, such as a younger, NFT-savvy generation. Banks will have to find new ways to connect with this demographic. We all recall going to a branch with our parents to have our bank books stamped. What will the next generation’s metaverse equivalent be?

Customers may be able to visit virtual branches for high-touch customer care, have a real-time property tour with a mortgage broker, discuss retirement plans with an avatar advisor, attend an investment event, or engage in a bank-sponsored community initiative.

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New product development and market expansion

Digital assets have exploded from the crypto community and are now traded and valued on a market. In other words, real money is already being spent to acquire virtual assets. They’ll want to put their virtual money to good use in the real world.

The metaverse’s developing economy is an untapped source of growth, with banks able to insure and lend against cryptocurrency, non-fungible tokens, and virtual real estate. Banks must decide what role they will play and how they will leverage this chance to expand their brand.

Wrapping up

For banks, this new frontier has a lot of promise. While many aspects remain unknown, the bottom line is clear: if you haven’t already begun to explore the metaverse, now is the time to do so. Inform your employees about the technology and its potential. Enroll in the best blockchain courses and get started with your journey as a Blockchain expert.

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Smita Verma

Smita Verma

Blockchain enthusiast and cover everything that goes on in the crypto ecosystem. I love researching and producing technical content on blockchain.