The metaverse is still reigning as the topic with diverse articles and hypes, still we haven’t understood the full concept yet, as the picture continues to be clearer each day.
The metaverse is a virtual replication of the real world, where interaction and fun can be taken to the next level. The issue of the metaverse is not in blockchain alone but in realities, social media, cryptocurrencies, etc.
Understanding the metaverse was really easy using 3D game halls and studios, but picturing a bank in the metaverse left everyone cold.
We have heard about different people and institutions venturing into the metaverse, even educational sector and the social media giant(Facebook known as Meta) followed suit. However, the principle of the formal can be pictured, as the principle is feasible. Not until JP morgan, an American bank announced it’s positive move into the metaverse earlier this year. JP morgan’s metaverse movement was confirmed by the purchase of their metaverse land in decentraland. How could this be?
What can a bank gain entering into the metaverse?
So many questions came into the mind of everyone, but who could really answer these questions?
We were still trying to comprehend the latest development, and our shock gained more momentum when South Korea’s Kookmin Bank followed the trend to launch it’s customer services options by featuring one-to-one dialogue in the metaverse.
Since then other banks like HSBC, UK-based payments, fintech Sokin have shown great interest in the metaverse.
So, why all these? Is it another issue of FOMO(Fear of missing out)?
In this article, we are going to understand the role of the metaverse to a banking institution or the reason why a bank should move into the metaverse.
The metaverse will change and enhance banking operation through the following ways;
Metaverse banking, how possible will it be?
Enhance customer’s 3D vision
Just like the transition of web2 into web3, it was not convincing at first not until it came into mainstream. The metaverse could create a 3d environment to increase the interaction of customers. Putting customers in an immersive environment will increase customer interaction. We have seen high report of people who believe that 46% of bank customers will use AR devices for interaction by 2030. This alone could be the reason while different banks are rushing into the metaverse to harness these technical features.
Some banks have already launched a VR application, making customers to be able to use VR to do some banking operations like account opening, and customer complaints medium.
Customer Interaction on another unique level
The physical banks are slowly losing customers. Even after creating online banking services, and bots chats, customers aren’t still satisfied as they expect more.
The communication gap between customers and their banking institutions can be bridged through the metaverse.
Thinking about the stress felt during complaints in a physical bank, and the issue of a bot telling you to visit the bank, because of its incompetency. All these are problems the metaverse can solve. It obvious that the metaverse can come into play to fix the broken customer relationship with banks. As we are having much adoptions of NFts, digital currencies, blockchain technologies, etc. The banks banks zooming into the metaverse is like creating a trend to reach the new digital generation customers.
The metaverse can make the customer service departments of banks to be top notch. Instead of going to a bank, you can plug in your VR device through the particular bank VR app, and discuss face to face with an official who is willing and ready to help you.
With this, the metaverse will create more jobs to be joined with the ones mentioned in this article;
Mind you, the metaverse cannot do away with the physical world, as we can have the combination of VR and AR in the banks. Where the ones who feel its convenient for them to visit the physical can come, and the ones who feel its better to use their VR can also stay in their comfort and get their issues solved.
New money management
Digital money is the trend of the world currently, and people are willing to use their real money for digital currencies, arts, and lands. A bank with a good foresight can take this opportunity to join the digital trend. This can involve the exchange of digital currencies and assets, through a metaverse banking network. A bank can also be an exchange point for NFTs, digital currencies and assets. This will extend their customer margin and their technological approach.
Banks will see a new money withdrawal and transfer approach through virtual ATMs. With the digital generation, these technological approaches will be greatly accepted. As technology is stretching, so are the technological brains of young and old ones.
The metaverse is far from the mainstream, so the bigger picture might not be felt by everyone. Just like how the first NFT minted on Ethereum blockchain raised the hunger and thirst for NFT’s in the world today, so will the metaverse clinch it’s ground. The gaming world made the metaverse to look sophisticated, but the innitial metaverse is simple, and will change in no distant time.
FOMO(fear of missing out) has been a tool for several digital adoptions in this current digital world. Many firms are drifting to different events, because of the fear of missing out. Having your competitor creating a metaverse land, will slowly pressure you to create one too. Also, new opportunities favors early adopters the most. So, the first set of banks venturing into the metaverse will create a better audience and rewards for themselves. That’s also the reason why different banks have taken the bold step to join JP morgan in this metaverse race.
Banks entering the metaverse is also a medium of gaining relevance in the present digital society. As if you are not talking digital today, you are seen as an old fashioned person or institution.
Finally, the metaverse will strengthen the grounds of all banks that venture into it, apart from the financial reward that will come.