Metaverse is known as the next internet. It has the potential to build the gap between the virtual and real world. People were unaware of this concept until Facebook announced its new name, “Meta.” The benefits of Metaverse are such that businesses can accomplish their goals. In the future, we will see many impossible things becoming possible.
With applications in various industries, Metaverse has now stepped into the banking sector.
No one feels excited about bank visits. It is a tiresome task and often time-consuming. Visiting local banks are a synonym for long queues, delayed support, and tedious application forms. The good thing is Metaverse can change it all. Meeting a banker from the comfort of your home, consulting an investment banker, and getting personalized products from your bank might seem like future things. But you can make it happen by integrating Metaverse with banking. For example, a pair of Virtual Reality glasses can offer contactless banking. This post will explain how Metaverse is re-shaping banking into virtual banking.
Before getting into this, you should have a clear understanding of Metaverse.
What is Metaverse?
Metaverse is an ecosystem where people traverse a virtual world that behaves like a real world. They can use avatars that represent them to interact in the virtual world. It is also described as the first web 3.0 technology that brings concepts of AR, VR, Blockchain, and Artificial Intelligence together. Do you know Blockchain technology with Metaverse can bring new possibilities to the world? It is no wonder Blockchain development companies have started to focus on the Metaverse. Let us understand the relationship between Blockchain and Metaverse in detail.
As mentioned already, Metaverse converge physical and virtual reality. It leads to an independent virtual economy empowered by NFTs and digital currencies. That means it does not rely on a vendor monopoly. Thus, people can use Metaverse for various activities meeting people, attending a concert or event, and selling products.
On the other hand, Blockchain platforms use NFTs and cryptocurrencies in many services. So, without Blockchain, Metaverse is incomplete because it will be decentralized. Otherwise, it will struggle with several centralized data storages.
Some examples of Blockchain in the Metaverse are gaming apps, real estate, etc. If you are looking for a similar project, hire one of the top Blockchain development companies.
We assume you have a basic knowledge of Metaverse and its applications. Now, we will learn what Metaverse in banking has to offer.
Banking in the Metaverse: How does the future look like?
Given the countless opportunities, the future of Metaverse looks flourishing. This virtual space provides users with a more immersive experience. They can interact, play, sell, buy, and leverage banking services. But have you ever wondered why we need Metaverse in banking?
Over the years, the Fintech industry has evolved significantly. It was a time when banks relied on the pen-and-paper model, which was time-consuming. The banking system uses online solutions like mobile and web apps thanks to the digital revolution. Undoubtedly, it made the lives of users convenient. But it has some downsides.
Firstly, banking has become more like a transactional thing with little-to-no emotional quotient. Plus, funds in the current banking system are centralized. That means authorities have control over it. Fortunately, Metaverse can bridge these gaps and make banking contactless, interactive, and decentralized. The decentralized nature ensures faster fund (in the form of NFTs) transfers between banks. Moreover, customers can consult bank investors using a pair of VR (Virtual Reality) glasses from anywhere. The following are the benefits of using Metaverse in banking.
- Technology costs reduction
The primary advantage of using Metaverse in banking is saving money to manufacture AR and VR equipment. It is because manufacturers achieve a wealth of demand for this. Initially, the cost of an Oculus VR headset was around $600. But you can get your hands on high-quality headsets at less than $100. Thus, dropping prices means the banking industry can access the technology without spending a fortune.
- Better banking experience
Banking with the Metaverse offers a stimulating and immersive experience to users. As we learned, the current banking system is more transactional without emotional quotient. But users can have an immersive experience if they transverse into a virtual world for daily activities.
- Unlimited access to customers and talent
If you look at the current banking system, the bank operations are restricted by borders. Banks have their set up to places where they want to provide services. But Metaverse can resolve this issue. It is because this virtual ecosystem offers access to unlimited talent and customers across the globe. For example, an Indian bank can have a relationship manager from Australia interacting with customers from Canada using Metaverse.
Metaverse has the potential to turn banking into something unimaginable. Leading banks like HSBC, the Bank of America, and JB Morgan are early adopters of Metaverse to offer new-age banking experience. If you are in the banking sector and want to adopt this concept, hire a reliable Blockchain development company.
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- Does Metaverse have any risks attached?
Indeed, Metaverse offers numerous opportunities for growth. But it comes with some risks too. These are related to online fraud, like data theft, phishing attacks, and false chargeback on transactions.
- Is Metaverse a Virtual Reality or Augmented Reality?
The Metaverse is a virtual space that brings technologies like Virtual Reality and Augmented Reality. As a result, it will mimic the real world.