October 16, 2022
The world is transforming at an accelerated pace, and the banking industry is no different. While the digital space offers a plethora of endless possibilities for business transformation, the Metaverse seems to be one of the most promising digital experiences by far. With the metaverse gaining more and more momentum across multiple industry verticals, analysts believe it could be an opportunity worth $8 trillion.
The financial industry is already being revolutionized by this. Even though the new business landscape is complicated, financial institutions can't pass up the opportunities it brings.
But how will the metaverse impact financial services? While banks are starting to realize the potential of the metaverse, they need to consider the basics as well as how this will change the future of business. Let’s look at three ways Metaverse can be used in the banking sector and the promising opportunities it offers.
1. Migrating your banking capabilities to 3D
It is not surprising to see innovators in this field given that 47% of bankers believe that clients will use AR/VR as an alternate channel for digital transactions by 2030. With all the buzz around the metaverse, there are great opportunities for enterprises to elevate their employee experience as well. Let's take the example of the Bank of America, which deployed a virtual reality (VR) training system for all of its 50,000 employees to help them better understand how to perceive customer emotions and respond aptly in the face of difficult scenarios.
Banks looking to gain a competitive edge in the metaverse will need to enable 3D interactive experiences for their employees and customers alike. The next step is to start reimagining how you could engage with customers, provide them insights, and establish relationships with them digitally over new virtual reality channels.
2. Discovering new customer engagement strategies
What does the metaverse mean for the banks of today? While banks have now become fully functioning, there are still some factors that make them emotionally distant. Interestingly, the metaverse presents a unique opportunity for financial institutions to reconnect with their customers on a more personal level.
Apart from that, the metaverse also provides fresh avenues for reaching new demographics, including the youth of today, who are quite interested in NFTs and the constantly evolving virtual space.
This means that now, with the metaverse around, banking customers can avail services by visiting virtual branches that can offer them immersing banking experiences. They can conduct a virtual home tour with mortgage brokers or even attend an investor event from the comfort of their home.
In order for banks to leverage this possibility, they should start preparing teams for exploration. Create working models quickly so that top-level managers can grasp the possibilities of the metaverse. Demonstrate to decision-makers how the metaverse may inspire a feeling of community and motivate individuals to work together by connecting their virtual and physical worlds.
3. Bringing new digital products into the market
After exploding in popularity among crypto enthusiasts, a market has emerged for buying, selling, and appraising digital assets. That's right; individuals are already shelling out hard cash to acquire digital possessions. A lot of them will want to put their virtual cash to use in the real world.
Banking institutions may want to capitalize on the growing cryptocurrency, NFT, and virtual real estate markets in the metaverse by insuring and lending against this class of digital assets. Financial institutions must choose how they will participate and make use of this chance to broaden their brand's reach
Traditional bank services, like cash transactions, branch shops, and sponsorships for digital events, will all be available in virtual form. Imagine walking over to the ATM, entering your PIN, and walking out with virtual cash that you can use to purchase a virtual iPad from the store right next to your house.
Interested in booking a demo with our metaverse experts for your bank and exploring a world of endless possibilities? Get in touch with us today.