JPMorgan adds the metaverse to its banking channels

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The news: JP Morgan opened a living room in the blockchain-based virtual world Decentralized and claims to be the first major lender to enter the metaverse.

The Onyx lounge is named after JPMorgan’s Onyx block chain unitwhich offers a suite of Ethereum-based services.

More on this: Gadgets in the investment bank’s new virtual lounge include a roaming tiger welcoming visitors and a portrait of CEO Jamie Dimon.

The news coincides with the release of a JPMorgan report on the growth opportunities related to the metaverse in which it:

  • Label the metaverse market opportunity at “over $1 trillion in annual revenue.”
  • Emphasizes that the average virtual land price doubled $6,000 to $12,000 over six months last year.
  • Acknowledges “explosive interest in the metaverse”.
  • Predicted that the metaverse would be “accelerating the shift “from cash to crypto.

Publicity stunt or signal of intent? This decision underscores JPMorgan’s ambition to modernize your brand keeping abreast of market trends and targeting a younger clientele.

  • The banking giant said the risk “of being left behind is worth the extra investment needed to get started” in the race to build a presence in the metaverse.

But the tangibility of JPMorgan’s new metaverse presence seems negligible to its clients:

  • No banking services are currently offered.
  • Decentraland range is minimal. It only has around 300,000 monthly active users and just 18,000 daily users, according to Yahoo Finance, although those numbers are growing rapidly.

What’s next for the banking metaverse?

  • Other investment banks will enter the metaverse: While no other major incumbent bank has dipped their toes into the metaverse, some have recently spoken of its enormous potential. Morgan Stanley put the future market value of the metaverse in China at $8 trillion, the same amount Goldman Sachs forecast for the global market.
  • Bank branches are here to stay: Consumers are still waiting 39% of their banking activity to direct human assistance by 2024. The number of bank branches may be declining, but while customer expectations of them remain, they will not completely disappear.
  • Consumers wary of virtual banking services: About 20-30% of people cite concerns about data security and fraud as a reason for not going digital-only with their banking services. The Metaverse itself is unlikely to allay concerns, as 50% people fear that it is too easy for hackers to impersonate others.
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