Home » Impacts of Digitization Wave Hitting the Banking Industry: Is Metaverse Next?

Impacts of Digitization Wave Hitting the Banking Industry: Is Metaverse Next?

by Ankit Singh
Banking Industry

We have left behind the days when people had to visit the banks to deposit and withdraw their money physically. Soon after, debit and credit cards came into the picture followed by digital transactions that eliminated the need to carry cash at all. 

Did you notice how the phases of digitization impacted the banking industry? 

What do you think could be the next big change for the domain? 

Okay, here’s a situation for you! 

Imagine being able to enter a bank virtually and deposit money. Or getting assistance from the rep avatars? 

Fortunately, it no longer happens in a fantasy world! All the above mentioned activities have now crawled to reality, and the entire credit goes to the banking in the Metaverse

So, how interested are you in learning the role played by metaverse in banking industry? 

If you’re equally thrilled as we were while getting to know the theory, this article contains all the important pieces of information you must swallow. 

So, let’s get started.

What Paved the Way for Metaverse in the Banking Industry? 

The banking industry moved to the metaverse stage after getting through other phases of evolution. Therefore, it is vital to understand each of these stages. Thus, we have lined them below to make it easier for you to know:

– Traditional Banking

This banking phase was dominated by central banks entirely dependent on direct interactions with the customers in a physical institution. The phase involved all the manual and paperwork, while the personalization and customization remained unknown. 

– Online Banking

The last decade witnessed a massive transformation of the banking industry when digitalization was introduced. Therefore, two stages came into the limelight- one where traditional banking institutions adopted digital modes of banking with the help of the internet and smartphone, and the other involved the development of fintech apps that directly addressed customer queries. 

How about getting in touch with a fintech app development company for further assistance on the fintech app idea? 

– Open Banking

In the past few years, the banking industry started roping in third-party services via APIs. Thus, it led to the existence of numerous neo-banks, cross-industry offers by banks, and more. 

– Digital Finance Banking

Blockchain came up with another secure and fast banking mechanism with the introduction of Web3, and NFTs and Cryptos have a significant role to play in the same. They have now added assets like gaming, art, and real estate to the financial market. 

– The Amalgamation of Metaverse and the Banking Industry

Metaverse acquired the tremendous limelight in the past two years and became a vital tech for a number of industries, banking being one of them. With the adoption of bank in metaverse, the industry made a remarkable move toward revolution.

Did you know which is the first bank in metaverse?

The first bank to open in metaverse was JP Morgan! 

To know more about the concept, continue reading! 

The Coming Together of Metaverse and Banks 

Indeed, metaverse use cases in banking comes with a truckload of benefits that opens the door wide open for new financial opportunities and enhances customer experience. 

Some of the noteworthy benefits are as mentioned below: 

1. Upgradation of Existing Mechanisms in 3D

Now that AR/VR is gaining massive traction, many banks are opting for these technologies as a substitute transaction options. For instance, Bank of America has now integrated a VR training program for its employees that would imitate real-life consumer scenarios. 

The two best advantages of using 3D for banks include an immersive learning experience and a frictionless banking experience for customers. 

2. Multidimensional Customer Engagement

Metaverse banking enables institutions to reconsider their methods of keeping in touch with their customers, and the answer to the same is multi-faceted: 

– Brand Expansion

Banks can now use metaverse to extend their physical space in the virtual world by imitating activities, including branch placements, cash withdrawals, etc., to help customers feel closer to the institution. 

– Personalization

Metaverse enables customers to take a virtual look into the portfolio and expenditure revenue along with virtually planned financial sessions and strategized product counseling. 

3. Originate New Products

Metaverse banking offers multiple opportunities, including:

– Digital assets like crypto and NFTs

– Digital twin

– Digital payments

These mechanisms build a robust connection between virtual and physical banks and pave the way for new revenue sources for banks. 

So, mentioned above the top-notch benefits of banking in the metaverse; however, not to forget mentioning that the industry needs to strategize and lay down accurate milestones for obtaining the desired results. 

Parting Words!

Undoubtedly, banking is brimming with opportunities that can lead to a massive transformation, and the metaverse tops the charts. It is a platform that can enable financial institutions to build exceptional connections with their customers and personalize their experience. 

What is your feeling about entering the new space? 

If we are on the same page, it is time to reach out to the best app development company to build a platform that would give birth to a hassle-free financing experience. 

Get, Set, Go!

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