Ever since Mark Zuckerberg changed his company’s name from Facebook to Meta, the word on everyone’s lips has been “metaverse.” Since the announcement, the metaverse has experienced unprecedented acceleration. According to Goldman Sachs, in the near future, the metaverse will be an $8 trillion industry on the revenue and monetization side.
Sensing the opportunity, banks are also jumping on the bandwagon and have started exploring metaverse and blockchain technology.
Test the metaverse
JPMorgan claims to be the first bank to move into Decentraland, a virtual world where users can buy digital land. Created by Onyx, the bank’s blockchain unit, JPMorgan’s “lounge” features a digital portrait of CEO Jamie Dimon and a roaming tiger.
HSBC Holdings also recently launched a fund called the Metaverse Discretionary Strategy Portfolio which will focus on investing within the metaverse ecosystem.
Similarly, American Express has hinted at its metaverse ambitions and plans to provide card payments, ATM services, banking and fraud detection to customers in the augmented reality space.
The metaverse has the potential to bring huge improvements to the banking industry, changing the way banks interact with their customers, invent products and enable services.
Engage with customers
The metaverse creates opportunities to reach new audiences, especially a younger, NFT-savvy generation. In the Metaverse, customers can visit virtual bank branches, discuss investment plans with an avatar advisor, and even take a home tour with a real-time mortgage broker.
The South Korean bank Kookmin Bank has already implemented consultations between customers and employees via avatars in its virtual bank.
In the booming metaverse economy, banks have the ability to lend and insure against cryptocurrency, NFTs, and virtual real estate. They may also engage in creating virtual interactions with customers, such as cash withdrawals from virtual ATMs.
Engage in 3D
The metaverse could help banks attract new customers who would otherwise be opposed to traditional banking systems. With banks offering customers the opportunity to benefit from financial products and services in an online virtual space from the comfort of their own homes, banks are likely to attract a new generation of users.