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Currently, the Metaverse is being used by most of the world, resulting in individuals living digital lives connected to their real lives as well as constantly living virtual realities. People can increasingly use virtual technology in areas related to social networking, work, and play. Essentially, everything and anything in the real world can be done by people. The Metaverse will be like digital twins, identical in the world, with whom you may be able to interact without leaving your home. Furthermore, in practical terms, the metaverse has opened up a vast array of opportunities in every other industry.
Let us, through this blog, explore the scope of the metaverse in the banking industry, and how technology serves in enabling banks to innovate as well as change the way they interact. Also learn about how switching to clean energy would improve Bitcoin mining.
Evolution: What Caused the Metaverse in the Banking Industry?
The banking industry is in the fourth stage of development, where crypto and NFTs are the first. However, a handful of banking institutions are in the fifth stage – the Metaverse. Let us see, what are the stages of development of Metaverse Bank and the issues related to it.
Traditional Banking: Talking about traditional banking, it was governed by central banks which was a two-tier banking stage. Seen in a physical location, it was supposed to rely on face-to-face interaction with bank customers. The platform was known for being heavily manual and paper-based, with an absence of financial product personalization and customization.
Open banking: Looking through the banking industry, APIs have opened themselves up over the last three to five years to connect with third-party services. Due to this, many neo-bank, cross-industry marketplace offerings by banks can be seen in existence. Like, buying and selling energy services, health, automotive and services, etc.
Internet banking: Digitalization of the banking business that began somewhat recently. Which was later divided into two categories – one where existing processes were accessed through the internet and mobile to digitizing and the second phase was new customer journeys of customers to meet digital-first demand.
Future of Banking in Metaverse
During the introduction of the Metaverse ecosystem, the upgraded version of Internet expansion explodes and is also known as the new version of 3.0 technology. However, it mixes the concept of blockchains, VR, and Artificial intelligence along with machine learning as well to make an immersive impression on the customers on the internet. Due to this, customers become the factor of this virtual world and they can directly play the role of sale, purchase, or exchange in banking services.
Development in Banking Sector
As the banking sector is limited with its starting days and has grown over periods. If we consider the initial time when banking was invented in the 20th century, all the banks were able to operate only with customer capital. After that, the banking sector developed with the technology revolution and this became highly process driven.
Benefits of Metaverse in Banking
The traditional banking sector has benefited in numerous ways from the metaverse. Which brings benefits that impact the customer experience while also opening up new financing models.
- Multidimensional Customer Engagement: It gives banking institutions in the metaverse an opportunity to see how they can interact with their customers and get empathetic service through avatars. Here’s an experience-focused answer to how the metaverse could impact financial services:
- Personalized Connect: In the metaverse, banks can provide high-touch service to customers by making strategic product recommendations by conducting well and virtual financial planning sessions, with a virtual look at customers’ expense revenues and portfolios.
- Brand extension: Banks can assume an imperative part in growing their actual involvement with the virtual world by imitating occasions like ATM cash withdrawals, format, and branch placement. In this way, customers can be helped to feel connected with the bank.
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