Metaverse in the banking industry — financial services to go virtual in the Web3 space
The metaverse is an experience that everyone looks forward to. They have a wide range of opportunities catered toward a Web3-focused future. One of the exciting opportunities is for banks to enable loans, investments, insurance, and payments in the metaverse economy. Like the real world, the virtual world will also require financial services to help people transact, buy, sell, or rent digital assets. The virtual world also allows banks to bring the human element back into banking so that the potential doesn’t stop.
For instance, consider when your parents took you to the bank to pick up your first card or savings book when you were a young child. That thrilling encounter might have ignited a long-lasting relationship with your bank. The conversions might be long gone as time has passed. But, here, it offers a chance to revive the conversations lost in digital channels.
How can banks benefit from the metaverse?
According to Goldman Sachs & Morgan Stanley, the metaverse economy may be worth up to $8 trillion. Banks are among the businesses best suited to meet the metaverse’s growing need for digitally native identity and currency. However, banks have the chance to use AR/VR and other technologies to completely rethink how they interact with clients and employees, in addition to the financial value of the growing metaverse economy.
By 2030, 47% of bankers predict that customers will switch to using AR or VR for transactions.
It could provide guidance and foster relationships in the virtual world when banking has become commoditized and emotionless.
What are the advantages of banking in the metaverse?
In the virtual world, banks will gain access to a variety of new opportunities. Those opportunities make people reap a lot of benefits.
Reinvent existing customer and employee experiences
- Banks will be able to create 3D customer and employee experiences using AR and VR technologies.
- Metaverse banking allows customers to check balances, pay bills, transfer money, and conduct business using AR and VR channels.
- They can deliver immersive experiences in the security of simulated customer environments or onboard remote workers in ways that foster enjoyment, connection, and a sense of community, which are excellent employee experiences.
Engage with customers in new ways:
- Banks can rethink how they interact with customers by providing individualized guidance, sympathetic support, and trust. Users engage using avatars or go to a physical location that provides metaverse experiences.
- Virtualizing common brand interactions, like taking money from an ATM, branch placement, branding, and endorsements are examples of marketing and brand extension.
Creating new products & services
- As a source of growth, banks can leverage the booming metaverse economy by offering cutting-edge banking products and services.
- Digital payments make secure wallet functionality and payment rolls possible for metaverse goods, services, and economies.
- Banks could expand their role as custodians of customers’ purchases to the metaverse by safeguarding, securing, and lending against cryptos, NFTs, and virtual properties.
Banks and their customers: how will the metaverse change things?
Digital banking experiences could be made more personal by adding a third dimension and a sense of presence. For instance, a customer might find a realistic avatar of a service agent or advisor more engaging than a chat application or a video screen. Banks can use the metaverse to encourage a sense of community and cooperative engagement among their customers, which connects entities from both virtual and physical worlds.
To increase trust and foster engagement, banks should anticipate entering the metaverse, setting the rules of engagement, and making money from it. Innovative banks will strive for transparent two-way relationships where customers can provide feedback and be aware of the goals & intentions of the bank. The traditional value exchange between an institution and a client is no longer effective as the relationship with the consumer shifts to one of a closer partnership. Banks will have to work to restructure how they create and share value if they want to build and maintain trust.
Conclusion
The digital sector works more on improving banking to make a mark in the industry. Metaverse banking is the right way to indulge in financial services in the virtual world. Building a business in the metaverse will increase the need for banks. So, get ready to witness banking in the virtual world very soon. So, start to build your metaverse now because banks make things better in the virtual realm.
