Virtual Banking in Metaverse

New-generation technologies have completely transformed the way we live. One of the new-generation technology Metaverse is creating a lot of buzz in the tech industry. The Metaverse is a progression of Web 2.0., the period of SMS, Web, and Mobile from where we have come. It will give decentralized and collaborative brand experiences to many industries.

Metaverse is invading every industry including the banking and fintech sectors. Banks were once the place where money was deposited and withdrawn. The requirement of visiting ATMs or even carrying cash was eliminated with the introduction of debit and credit cards, followed by digital payments, specifically due to pandemic.

What is Metaverse Banking?

Metaverse Banking is an amalgamation of multiple new-generation technologies. It integrates traditional banking and financial activities within the Metaverse. Shortly, people will be able to access and manage their financial assets, carry out transactions and take part in a variety of banking activities all within an immersive and connected virtual world.

In Metaverse banking, users could have their digital wallets, virtual assets, and virtual versions of their real-world financial accounts. They may be able to access these accounts, check balances, initiate transfers, make payments, and engage in investment activities in the Metaverse.

What does the actual Metaverse offer Banks?

According to the survey by Morgan Stanley and Goldman Sachs, the Metaverse is expected to grow to a size of $8 trillion in the future. Banks play a major role in today’s current market valuation.  They will completely reinvent how they interact with consumers and with products by using technologies like cryptocurrencies, AR, and VR.

Banks which are leveraging Metaverse

1.JP Morgan

The Onyx Lounge was first attributed to the growing amount of interest from customers in the Ethereum-based services. The bank is trying to provide the same banking services virtually as it provides in its physical offices. Metaverse financial market is a sign of the Metaverse’s potential.

2. HSBC

HSBC tried to purchase a piece of land at the Sandbox Metaverse. The area will be used by HSBC to meet e-sports and gaming fans.

HSBC is entering in to Metaverse through the collaboration with the Sandbox, opening the door to developing fresh brand experiences for both existing and potential clients. HSBC, Gucci, Adidas, and Warner Music Group have teamed up with Sandbox to provide customers with immersive experiences.

3. Quontic

It was the first bank to launch its outpost in Decentraland. It was the first bank to offer Bitcoin rewards to its account holders. By providing a more individualized experience, Quontic strives to close the gap between online and offline banking processes. The Metaverse now offers both the human connection of offline banking and the convenience of online banking.

4. Kookmin Bank

It is a South Korean bank that partnered with Share box to launch the KB Metaverse VR branch testbed in 2021. Through Share box VR gear, their users can now access banking services in the Metaverse.

The central hall and VIP lounge are both features of the Metaverse branch of Kookmin Bank. Customers receive an avatar as soon as they enter the virtual branch. Customers can move around the branch as they would be in reality. Through the virtual teller window, they can carry out straightforward transactions such as withdrawing and depositing money. They can enter the VIP lounge to access additional services.

Punjab National Bank -Virtual Banking

PNB has recently inaugurated PNB Metaverse, virtual bank that provides a distinctive banking experience. Customers can explore variety of services and products including bank deposits, loans, digital goods, and government schemes though their mobile phones and laptops.

Digital avatars can be used to do conventional banking tasks while offering a 3D experience with exclusive access to virtual environment.

By utilising this technology, PNB aims to improve client engagement, speed up customer acquisition, and provide highly customised experiences.

Conclusion

Metaverse banking has the potential to significantly alter how people interact with financial services in the virtual world. Banks and financial organizations set up a seamless integration with the Metaverse, enabling users to manage their assets, access their real-world financial accounts, and carry out transactions without ever leaving the virtual reality.

Strong security precautions are essential as the number of financial transactions and assets within the Metaverse grows. Banks may incorporate modern security technologies like biometric authentication, encryption, and block-chain based solutions to protect consumers’ virtual assets and guarantee secure transactions.

It is vital to emphasize that collaboration between financial institutions, technology companies, regulatory authorities, and users will be essential for the future of banking in Metaverse.

Sapizon Technologies is a leading Metaverse development company that delivers Metaverse and custom XR solutions to banking and financial sectors.