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June 28, 2024
The Metaverse ecosystem is the next stage of the internet evolution and an essential part of Web 3.0 technology. It blends the concepts of Blockchain, AR, VR, Artificial Intelligence, and Machine learning to make the user experience on the internet immersive. Users are part of an interactive Virtual world where they can play, buy, sell and even avail banking services.
Analysts project that the Metaverse economy is set to boom in the coming years, and there are strong reasons to make this calculated assumption.Reducing Technology Costs:
Hardware manufacturers are achieving economies of scale, thereby reducing the costs for producing Augmented reality and Virtual Reality equipment. When Facebook acquired Oculus, the price of an Oculus VR headset was roughly $600. But today, high-quality VR headsets from Oculus can be bought for less than $100. Technology will be within mass reach with dropping prices, and this can be a boon to the banking industry.
Change in Banking Experience:
Banking through the Metaverse will be a stimulating experience, unlike the current banking experience which is mostly transactional. The experience of transposing into a virtual world for day-to-day activities would be exciting for most of us, as we only get this experience while watching a film or playing a game.
Access to Talent and Customers:
Banks are currently limited by borders to run their operations. Banks often set up workspaces in markets where they intend to provide services.
Metaverse provides an unlimited potential to access customers and talent from all over the world. Imagine this, an Indian bank could have a relationship Manager from Europe who could be speaking to a customer from Australia through the Metaverse.A Branding Arm for Banks:
Banks who have the early mover advantage in this space will grab customer attention and pave the way for the rest to follow. Adopting new technologies would be a great way to position the brand for the current youth who will be potential customers in the future.
With more youth showing interest in NFTs, Cryptos, and Metaverse, it is not far-fetched to assume that these youth will have a strong brand recall to the banks that position themselves effectively.Present-Day Adopters of Metaverse:
BNB Paribas, JP Morgan, HSBC, and Bank of America are some of the banks which are currently making leaps in this space.
BNB Paribas has launched a Virtual Bank for customers to access their account information. JP Morgan set up a virtual space called Onyx in Decentraland. HSBC is tapping into the Sandbox Metaverse to invest in a piece of land.
Once the adoption of Metaverse picks up pace, more banks are set to follow.Conclusion :
Metaverse is set to shape the future of banking. Close to 70% of bankers believe that Virtual Reality services could be a differentiator for banks according to an Accenture Report.
The Metaverse radically reduces the bottlenecks in today’s banking services, and it is practical for banks to adopt this new age version of banking to create a competitive advantage. It could be a reality that sooner or later, you might find yourself wearing flashy eye gear and visiting a bank in a Virtual space.Share This Post
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