Over the past year, big tech companies like Meta, Microsoft, Tencent, and others have made big moves in the metaverse. More and more banks are paying attention to this new part of the internet. For banking, metaverse means changing how we do online banking now into a virtual space in metaverse that feels like walking into a real bank.
Digital banking works well today, but there is no feeling there. When people bank in the metaverse, they will be able to do more than just bank online. AR (augmented reality), VR (virtual reality), and blockchain technologies will be used to make it, and people will be able to meet and talk with banks virtually.
What kinds of banking services will the metaverse be able to offer?
Goldman Sachs and Morgan Stanley say that the metaverse’s economy will grow to be worth USD 8 trillion. There is a good chance that banks and the people who use them will do a lot for this economy.
Immersion for both customers and employees
The “Metaverse” for banking will be built with AR, VR, and blockchain technology. Customers and employees will be able to use this to have 3D experiences. Customers will be able to check their balances, pay bills, and make transfers at virtual kiosks. Even bank employees who work from home can learn a lot from these simulated customer experiences.
Metaverse Development will put customers in touch with bank employees so that customers can get advice that is just right for them. Both customers and employees will have a virtual version of themselves in a banking metaverse. Customers who want to buy high-end products like mortgages and financial planning sessions can benefit from AR/VR technology.
Banking brand extension
With metaverse, banks can give their customers virtual brand interactions like using an ATM to get cash, finding out where a branch is, and getting suggestions. It will also show customers how well a company cares about the community and how well it is run.
Digital asset management
Now that crypto assets are 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 providing services like securing crypto assets, borrowing against crypto assets or NFTs, and lending against them. You can do this by making a copy of the virtual twin of the crypto asset.
How have some big banks started to look into the metaverse?
Some of the biggest names are already looking into how to make the metaverse better:
JP Morgan has been one of the most vocal backers of blockchain and the ways it can be used in banking. So, it was pretty clear that JP Morgan would go to the metaverse.
In 2022, JP Morgan bought a spot in the virtual business area of Decentraland. Right now, if you go to JP Morgan in Decentraland, you’ll see a tiger and a picture of the company’s CEO smiling. In the future, JP Morgan wants to bring business opportunities to the metaverse that are worth more than $1 trillion.
HSBC bought a piece of land in The Sandbox in 2022. Right now, this online space only has a video showing that HSBC has taken over this land.
In May 2022, Standard Chartered said it had bought a piece of land on Decentraland. But so far, no work has been done to improve it.
All of these banks want to take part in the growing economy of the metaverse. Banks can offer services like insurance and loans in exchange for cryptocurrencies, non-fungible tokens (NFTs), and virtual real estate. This is a way to grow that hasn’t been used yet. Each bank has to decide what role it will play and how it will use the metaverse to grow its market share.
Does metaverse banking carry any risk?
Metaverse banking would change everything and could put banks in trouble with the law and their reputation. Before using metaverse-enabled services, banks have to make sure they are safe by using a lot of checks and balances.
Traditional banking and crypto banking might merge in the future to give users a new way to bank. People will be able to get ahead in the space race by banking in the metaverse.
If you want to make 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 customised metaverse development solutions.