Tech giants like Meta, Microsoft, Tencent, and others have made big moves in the metaverse over the past year. Banks are starting to pay more attention to this new part of the internet. For banking, metaverse means changing the way we do online banking now into a virtual space in metaverse that feels like walking into a real bank.
The digital banking of today works well, but there is no emotion there. People will be able to do more than just bank online when they bank in the metaverse. It will be made with AR (augmented reality), VR (virtual reality), and blockchain technologies, and it will let people meet and talk with banks virtually.
What kinds of banking services will be possible through the metaverse?
Goldman Sachs and Morgan Stanley say that the economy of the metaverse will grow to be worth USD 8 trillion. It is likely that banks and people who use banks will contribute a lot to this economy.
Immersive experiences for both customers and staff
AR, VR, and blockchain technology will be used in the development of the "Metaverse" for banking. This will give customers and employees 3D experiences. On virtual kiosks, customers will be able to talk to employees, check their balances, pay bills, and make transfers. Even bank employees who work from home will learn a lot from these simulated customer experiences.
Customer engagement
Metaverse will link customers to bank employees so that customers can get personalized advice. In a banking metaverse, both customers and employees will have a virtual version of themselves. AR/VR technology can help customers who want to buy high-end products like mortgages and financial planning sessions.
Also Read Here: Everything You Need To Know About Metaverse NFT Marketplace
Banking brand extension
With metaverse, banks can give customers virtual brand interactions like getting cash from an ATM, where a branch is located, and recommendations. It will also show customers how socially responsible and well-run a company is.
Digital asset management
Now that crypto assets are becoming a part of the global economy, banks need to change their role and build the infrastructure they need to act as custodians of digital assets. This would mean offering services like securing crypto assets, borrowing against crypto assets or NFTs, and lending against them. This can be done by making a copy of the crypto asset's virtual twin.
How have some large banks begun to look into the metaverse?
Some of the biggest names have already started to look into the development of the metaverse:
JP Morgan
JP Morgan has been one of the most vocal supporters of blockchain and the ways it can be used in banking. So, it was pretty clear that JP Morgan would go into the metaverse.
In 2022, JP Morgan bought a spot in Decentraland's virtual commercial space. If you go to JP Morgan in Decentraland right now, you'll be greeted by a tiger and a portrait of the company's CEO smiling. JP Morgan wants to bring business opportunities worth more than $1 trillion to the metaverse in the future.
HSBC
In 2022, HSBC bought a piece of virtual land in The Sandbox. At the moment, this online space only has a video showing that HSBC has taken over this land.
Standard Chartered
Standard Chartered said in May 2022 that it had bought a piece of virtual land on Decentraland. So far, though, no development work has been done on it.
All of these banks want to be a part of the metaverse's growing economy. Banks can offer services like insurance and loans against cryptocurrencies, non-fungible tokens (NFTs), and virtual real estate. This is an untapped source of growth. It's up to each bank to decide what role they'll play and how they'll use the metaverse to grow their market presence.
Is there any risk about metaverse banking?
Metaverse for banking would change the whole playing field and could put banks at risk in terms of their reputation and the law. Before using metaverse-enabled services, banks must use a lot of checks and balances to make sure they are safe.
Final Words
Over time, traditional banking and crypto banking might come together to give users a new level of banking. Banking in the metaverse will become a way to get ahead of other people in the space race.
Whether you want to create a metaverse experience for banking or any other industry, like real estate, entertainment, social media, fashion, or more, Suffescom Solutions Inc, a reliable Metaverse Development Company, can help you reach your business goals with customized metaverse development solutions.
