We can work together and create mutually beneficial relationships in the metaverse because it includes both real and virtual worlds.
There is a place where people can meet and interact, where avatars can be made, and digital assets (land, buildings, items, non-fungible tokens [NFTs]) can be purchased and sold thanks to the unique convergence of augmented reality (AR), virtual reality (VR), and blockchain.
It will eventually develop from a disconnected variety of sites and apps into a unified 3D setting. Data frameworks that generate authenticity and trust are the foundation of the next generation of digital technologies, allowing users to feel fully immersed in digital worlds.
Goldman Sachs and Morgan Stanley place a value of $8 trillion on the metaverse economy, while Citi puts that number at $13 trillion.
How will Banking Firms Plan to Capitalize on this Metaverse Opportunity
- Banks have a strong position
Entities like banks are well-positioned to meet the growing need for metaverse-based digital currency and identity.
They can reconsider how they communicate with customers and workers. By 2030, 47% of bankers anticipate that customers will adopt AR/VR as a secondary transaction channel.
To demonstrate this, let’s look at some other news.
- The future of customer service is virtual
Kookmin Bank, a South Korean financial institution, already provides a virtual banking platform that facilitates personal interactions between customer and staff avatars.
BNP Paribas has released a virtual reality app for account opening and other banking services.
For financial trading, Citi has experimented with holographic workstations. HSBC has established a metaverse investment fund for its ultra-wealthy clients in Asia.
Imagine that the mainland platform is live for the 3.7 million customers of CaixaBank’s digital-only bank.
In addition, a live concert was filmed with 360 degrees of cameras.
- Safety of cryptocurrencies and other digital assets
The Metrobank in Sweden is testing out a service to store digital assets.
Commerzbank, a German financial institution, has applied for a license to provide cryptocurrency safekeeping services to its customers.
- Computer-based role-playing exercises for staff training
Bank of America is using virtual reality (VR) to train 50,000 employees to better serve customers by allowing them to practice recognizing customers’ emotions and adjusting their behavior in safe, simulated situations.
- Technology on a grand scale
Facebook’s proposed virtual token for the metaverse, Zucker Bucks is developing (seriously).
The digital token is designed to be spent exclusively on Meta sites, discouraging users from leaving for competing platforms like TikTok.
Like Fortnite and Roblox’s virtual currency, Zuck Bucks would be directly managed by Meta.
In addition, Meta is considering charging for NFTs and incorporating advertisements.
The ability to issue one’s own stablecoins and convert mortgages into NFTs are just a few services that some tech companies provide in the metaverse via payment cards and loyalty programs.
- Patents and the Art of Innovation
As part of a broad strategy to bring its payment processing system, straplines, and branding into the new virtual economy, Mastercard has filed 15 trademark applications in the NFT and metaverse spaces.
Patent applications are also in the works at American Express.
In addition, the New York Stock Exchange has applied for a patent on a non-traditional trading platform.
- Internet property
The investment firm HSBC is buying up virtual land in the online gaming and sports community known as The Sandbox.
Land in The Sandbox’s Mega City district, an art and entertainment mecca influenced by Hong Kong’s creative community, has also been acquired by Standard Chartered.
In addition, with the launch of Onyx, a virtual lounge in the blockchain-based world of Decentraland (with an increase in users from 40,000 in 2021 to 800,000 this year), JPMorgan has entered the metaverse.
Like its real-world counterpart, the bank can act as a conduit for monetary transactions across national boundaries and the issuance, trading, and storage of various types of financial assets.
How do Payments Work in the Metaverse?
It’s still early in the metaverse, so no single method of making transactions has gained widespread acceptance. However, the great majority of payment systems are compatible with both cryptocurrency and traditional fiat currency.
1. Metaverse monetary systems based on fiat currency
Games like Fortnite make billions of dollars yearly from in-game microtransactions on online gaming platforms by selling digital goods to their players.
Most of the time, fiat currency is used in these kinds of exchanges.
There are primarily two varieties of virtual economies that use fiat currency.
People who use widespread credit card networks like VISA and Mastercard are the first type.
But some games, like EA Sports Soccer, have virtual currency that can be purchased with real money (through the same channels as above) and used within the game itself.
The first kind is the simplest to understand and implement, and it functions similarly to other forms of electronic payment.
The second type adds an extra step because you’ll need real money to purchase the game’s virtual currency.
As a result, the developers and publishers don’t have to worry as much about the ups and downs of real-world currencies, which is reflected in the virtual currency used in the game.
2. Metaverse monetary systems dependent on cryptographic currencies
Cyber currency is the flip side of the payments coin in the metaverse.
This is the most well-known application of blockchain technology.
Cryptocurrency transactions are much more secure than fiat-based payment methods, both in terms of how hard the network is to hack and in terms of personal data privacy, and offer many advantages when buying and selling digital assets.
3. What is an HNI customer in a bank?
The term “High Net Worth Individual” (HNI) refers to people who have more than $1 million in liquid assets (not counting their primary residence, any personal collections, or any consumables or durables).
Bringing the People Back into Banking
Modern banking may be more automated, but it still lacks human connection.
However, the metaverse also presents a unique opportunity for financial institutions to reconnect with their customers on a more personal level.
In a time when banking has been dehumanized as a commodity with no emotional resonance, banks could provide advice and cultivate relationships.
In a way that is impossible with app notifications or text messages, the metaverse has the potential to restore humanity to the conversation.
Customers could visit virtual branches for personalized service, go on a virtual house tour with a mortgage broker in real time, easily have retirement planning discussions with an animated advisor, or participate in a virtual investor conference, all without leaving their homes.
After finishing up with your avatar consultant, you could exit the room, stop by an ATM, withdraw some virtual cash, and then head next door to purchase a virtual purse.
It’s already the case that people are willing to part with real money in exchange for virtual possessions.
Many will want to put their virtual cash to use in the real world.
For instance, 2021 saw real estate sales in the metaverse surpass $500 million, and experts predict that number will double in 2022.
Additionally, you may encounter individuals with similar characteristics to yourself in your virtual environment.
Therefore, banks can promote diversity and inclusion by employing virtual assistants that reflect various cultural and ethnic backgrounds.
The significance of this needs to be clarified because a more personal setting between a client and their advisor, broker, or teller will lead to better relationships, higher retention rates, and higher profits. Unfortunately, that time has yet to come.
True, but that’s the point. Magic could happen if banks used it to reconnect with their customers and start talking to them again.
To accommodate customers with the new identities and modes of participation made possible by the metaverse, financial institutions will need to develop novel approaches to customer service.
Interestingly, banks will be successful if they return to the personalized service and intense emotional engagement that defined branch banking before the advent of digital technology.
How can Banks Benefit from the Metaverse
- Involving customers in inventive ways
It will be possible to check their bank accounts, make deposits and withdrawals, and handle other financial transactions while they are in the Metaverse.
But more than a metaverse branch experience is required.
For example, Digital Financial guidance, such as portfolio evaluations once a year, will be provided by virtual characters.
And suggestions for related products, all within an immersive 3D setting that significantly shifts the balance of power in an interaction. Currently, we’re collaborating with a client on this issue.
Find applications with low costs and risks: 23 million new jobs are expected to be created by 2030. training purposes across the globe.
Present in-depth, Gaining expertise with fictitious clients in a risk-free environment space, or facilitate social interaction among dispersed employees like Accenture’s Nth Floor, which emphasizes teamwork and camaraderie.
In addition, low-code Metaverse projects can be launched with the aid of no-code platforms.
- Development of Brand-New Products
Safeguard the online-payment system capabilities and a monetary system for virtual goods in the metaverse, services. Protect, insure, and lend against crypto, NFT, and traditional asset values. Also, Blockchain Technology is playing a vital role in Insurance Industry.
Land in cyberspace. Produce a digital duplicate of a physical asset, such as a building, to a home or a bank branch.
Think about visiting a virtual reality (VR) attraction that is a replica of the house you might be interested in purchasing instead of just looking at media files (photos and videos).
The bank could use this digital duplicate to approve a loan for funding.
- Practical Knowledge
The bank’s employees will have access to a wide variety of incredibly lifelike digital consultants and helpers to supplement their efforts.
The chief economist at UBS already has a digital double.
How teams work together will become more immersive onboarding.
A digital coach will allow for more efficient and effective training growth and progress.
There will be a wide variety of new occupations, such as Artists skilled in 3D modeling, video game development, platform management, cryptocurrency professionals, and experts fluent in multiple blockchain languages.
Examine the right state of the market and the available technologies to determine if they are “technology ready.”
Landscape to grasp its dynamic development and the resources at possibilities and collaborators.
An established cloud deployment strategy is essential; perhaps there’s room for more specialized funding of virtual reality, augmented reality, virtual marketplaces, and distributed ledgers.
It’s possible, though, that this challenging and requires extensive system integration and physical support capabilities.
- Promoting and establishing fame
Develop targeted, interactive marketing strategies to put it somewhere in the metaverse.
Promote your company by establishing your commitment to environmental, social, and governance (ESG) brought more vividly and emotionally to life.
What if they could see what we do? Estimate energy savings from installing solar panels on their roof scenarios for production, aesthetic impact, and financial outlay in light of green Home loan interest rate reductions.
What Can We Do to Assist
For its customers, SDLC is envisioning alternative futures in the metaverse.
For banks to hold hybrid employee events, an immersive world where virtual, augmented, and physical elements blend; a strategic vision for wealth management in the next decade; or a secure metaverse payment and infrastructure.
Don’t hesitate to contact us for assistance with Mixed Reality Capture capability development.
Virtual reality (VR), augmented reality (AR), desktop computers (PCs), laptops (Macs), and mobile phones can all work together in a unified holographic virtual environment.
Our parent company, Accenture, has launched a new initiative called the Metaverse Continuum, which provides the resources necessary to design, develop, and manage metaverse applications.