MetaverseAs Metaverse banking opens new arenas, banks should explore new ways to engage with customers.

The one image that comes to mind when an average person thinks about Metaverse, is extended reality. Metaverse touted as the next iteration of the internet, or Web 3.0 is more than about having a virtual, alternative world. Facebook was the harbinger of targeted advertising and brand building, because of which companies would invest significantly in engaging with it. Now, as its virtual version is knocking at the door, many business houses find it inescapable. Why do we need metaverse banking at all? Imagine playing games on metaverse, buying a virtual costume, or a home. All the engagement including watching movies, clubbing, and real-time shopping, needs a solid banking system and transaction channel that includes taxation, regulation, and international compliance. But how to build a comprehensive metaverse banking service? Here is a practical and progressive schema for banks to adapt to plunge into the metaverse.

Create a 3D version of existing products

Every time a new technology is introduced, critical industries such as finance and banking take time to adapt because of the perceived risks. According to a report, nearly 34% of users would be using AR and VR technologies by 2030. One better way to test the waters of new technology without having the FOMO is tapping into potential users of 3D technology, developing a virtual version of the existing infrastructure such as products, services, employee training, etc. Few banks like BNP Paribas, GTE Financial are using these technologies with VR-enabled apps and 3D versions of their services respectively. Bank of America has recently deployed VR training modules to train nearly 50,000 of its employees in immersive technologies. Through this training module, an employee will be able to detect emotions and adjust the behavior accordingly.

Level-up customer engagement

As Metaverse banking opens new arenas in personal communication, banks should explore new ways to engage with customers. Metaverse holds huge potential for banks to bring into its fold a new generation of money minters a.k.a Crypto traders, NFT players, etc. Hatton National Bank, located in Srilanka generates awareness about their banking products using immersive technologies such as Oculus Rift System. Their intention is to make the very dull and boring to learn banking procedures sound interesting to potential as well as existing users. JP Morgan, as the first bank to use Metaverse, has launched an Ethereum-based suite, named Onyx lounge. KB Koomin Bank, South Korea’s largest bank is leading in user engagement with its KB VR Testbed, which enables customers to engage with its services using a VR headset.

Invent products for new markets

Web 3.0, with its seamless adaptation to immersive technologies into every aspect of the digital world, holds infinite potential to take the business into never seen horizons. With the burgeoning crypto market, banks can very well capitalize on crypto-trade. Banks can consider lending against NFTs and virtual real estate, all while rebranding themselves as crypto facilitators. When virtualizing is the name of the game, what should stop banks from virtualizing their transactions, such as setting up virtual ATMs, creating avatars for financial advice or counseling? Marketing in Metaverse is not about selling products to users but engaging them actively by taking proactive steps. Recently, HDFC, a major player in the housing industry bought virtual land in the metaverse. The interest shown by major industrial players demonstrates why Metaverse banking is considered an inevitable building block for financial transactions.