Earlier this year, JP Morgan became the first embrace Metaverse in banking with much fanfare. The US investment giant took a large plot in Decentraland and boasts a prowling tiger as a feature in its Onyx Lounge. Goldman Sachs has predicted that the metaverse will be an $8 trillion industry in the near future. sensing the growing opportunity, banks and financial institutions are exploring metaverse and blockchain technology. Till date, JP Morgan is leading the pack in terms of banks venturing into the metaverse. However, it remains to be seen how other banks will make their presence felt in this new and exciting realm.

Metaverse in banking – how banks embrace the change?

As we move into a 3D world, banks will need to consider how to enable banking in this new environment. Customers may use augmented reality or virtual reality as an alternate channel for transactions by 2030. Bank of America is already using VR training for 50,000+ employees to simulate real-time customer service scenarios and help them detect emotions and modify behavior in a risk-free environment. This type of training and planning will be essential for banks as they adapt to the changing landscape.

Three approaches of Metaverse in banking

AR and VR

As the world increasingly moves online, so too do many business operations. Banking is no different, with more and more customers taking advantage of online banking services. But banks are also looking to the future, and exploring how they can use new technologies like augmented reality (AR) and virtual reality (VR) to enhance the customer experience.

AR/VR can be used in a number of ways in banking. For example, banks can use VR to create immersive experiences that give customers a realistic view of products and services. This can help customers make informed decisions about financial products, and understand how they work in the real world. AR can also be used to overlay digital information on the physical world. Ultimately, this can be helpful for things like providing directions to a branch or ATM, or displaying account balances and transaction history.

In addition to enhancing the customer experience, AR/VR can also be used to attract and retain talent. Banks can use VR to create virtual work environments that allow employees to get a realistic view of what it would be like to work at the bank.  By this way, it  can help banks identify potential recruits, and give them a better idea of what they would be doing day-to-day. AR can also be used in training programs, to provide employees with interactive and engaging learning experiences.

Till date, only a few banks have started using AR/VR, but it is clear that this technology has great potential in the banking sector. those looking to gain early advantage will need to start enhancing capabilities now.

More personalized interaction

In order to better serve their customers, banks want to establish new methods of communication. This could involve setting up virtual branches where customers can receive high-touch customer service. By this way you can take advantage of real-time mortgage broker house tours, or participating in sponsored community programs. By establishing these channels of personalized communication, banks will be able to provide their customers with the level of service they need and deserve.

This includes things like virtual branches, where customers can receive high-touch consumer service; real-time house tours with mortgage brokers; avatar advisors for discussing retirement plans; attending investor events; or participating in bank-sponsored community programs. All of these options provide a more convenient and personal way for customers to bank, without having to physically go into a branch. By exploring these new opportunities, banks are able to stay ahead of the curve and provide their customers with the best possible experience.

The metaverse provides banks with a new avenue to reach customers and deepen connections with them. By meeting them in more meaningful ways, banks can bring human interaction back into banking and create new opportunities to reach new audiences. This includes a younger, NFT-savvy generation that is looking for ways to use their digital assets.

Know appICE can help in developing Personalized Customer Engagement 

Creating New market opportunities

As digital assets grow in popularity and value, more and more people are looking for ways to spend them in real-time. This presents a unique opportunity for banks to get involved in the metaverse economy and extend their brand. By offering services like insurance and lending against NFTs, crypto currency,  and virtual real estate, banks can tap into this untapped source of growth and capitalise on the trend. Moreover, few banks have taken benefit of this opportunity but those that have are well positioned to benefit from the continued growth of the metaverse economy.

As the metaverse economy continues to grow, banks that don’t get involved will miss out on a huge opportunity. Now is the time for banks to decide on the role they want to play in this growing market. At its current rate of growth, the metaverse economy is estimated to be worth $100 billion by 2025. This presents a significant opportunity for banks to get involved and extend their brand.

By offering services like insurance and lending against crypto currency, NFTs and virtual real estate. Therefore banks can tap into this untapped source of growth and capitalise on the trend. Moreover, few banks have taken advantage of this opportunity but those that have are well positioned to benefit from the continued growth of the metaverse economy.

Also Read – Metaverse: The Future of Banking

Now is the time for banks to decide on their role in this growing market and take advantage of the opportunities it presents.