Digitalization in Banking Sector- Metaverse

18 February 2024 | By - Krishna Mohod

Considering the olden days, banks were used to deposit and withdraw banknotes. Then ATMs came into existence with services like debit and credit cards, and UPI payment soon followed, crashing the need to go and visit ATMs or even risky methods to carry cash. The banking industry has been observed as one of the primary sectors that are getting affected by every wave of digitalization, this time it changed with the superior version of it i.e., Metaverse.

Just Imagine virtually entering a bank branch with the help of customer rep avatars to enter the digital vault and deposit or take out money. All of these are going to head the banking sector and it will turn into digital currency through tokens from a digital wallet like Ethereum. In this article, we are going to dive deep into the facets of business opportunities for the metaverse in the banking sector and how banks should plan out the entry of the metaverse with giving the finest examples.

Metaverse in the banking sector:

The report of last one-two years stats that the metaverse has occupied massive traction in all industrial sectors with banking being one of them. With virtual banking experience taking center stage, the industry is set for another large revolution. Although, Customers are facing some sort of issues using this technological trend, the bank that has consumed this new way of banking are still finding solution. Let me illustrate you giving examples of the recent metaverse use cases in banking sectors.

JP Morgan-

One of the leading companies JP Morgan has opened an Onyx lounge in Decentraland metaverse where they have given few-metaverse services to their customers. The services include cross-border payments, financial asset creation, safekeeping, and trading.

HSBC

they have invested a lot in a plot at The Sandbox metaverse, that will be designed for engaging with gaming and esports fans.

Standard Chartered

Standard Chartered also plan to give a metaverse experience to their customers. They acquired land in Sandbox and will use that place to experiment and create a new diversion for clients on the metaverse.

Banking is on the path of a digital transformation to facilitate their customers a lot more with the upcoming time. This advanced method of metaverse will helps bank to reconnect with their customers and build a new space full of emotional, personalized engagement with them.