Banks Enter Metaverse, Unlocking New Financial Possibilities
• Financial institutions have begun setting up shop in virtual worlds, such as the metaverse, to attract a young, tech-savvy audience.
• Banks are looking to build relationships with these new consumers and tap into this pool of talent for future hiring.
• JPMorgan, HSBC, Kookmin Bank and DBS are some of the companies leading the way in offering financial services in the metaverse.
What is the Metaverse?
The metaverse can be broadly defined as a blockchain-fueled, all-encompassing virtual world that offers new human and socio-cultural experiences. It consists of decentralized and immersive social experiences that often involve virtual reality (VR) and augmented reality (AR), opening up entirely new sets of opportunities for social interaction. No single company or application defines the metaverse, and users can use a single, portable identity among metaverse apps.
Big Banks Entering the Metaverse
Leading institutions from different parts of the world have begun to set up shop in the metaverse. JPMorgan arrived in Decentraland under their Onyx brand, which is „a blockchain-based platform for wholesale payment transactions.“ Additionally, HSBC has purchased land on The Sandbox to engage with clients and offer them novel experiences through emerging platforms. Kookmin Bank from South Korea also has its own native metaverse-based financial services as well as one-on-one customer service; while DBS Bank from Singapore purchased land on The Sandbox to develop interactive experiences aimed at promoting financial literacy.
Reasons Behind Banks‘ Move Into Virtual Worlds
Banks are eager to get into virtual worlds because it allows them access to a user base and audience that are young, tech-savvy and just beginning their financial lives – making it an ideal way to introduce new customers to banking products and services. It also provides banks with an opportunity to tap into this pool of talent for future hiring purposes.
Benefits for Customers
Customers stand to benefit from banks entering the metaverse too – they will have access to innovative banking services like never before – including interactive tutorials on finance topics such as budgeting or investing – which could help them make more informed decisions about their finances. They will also be able to engage with banks directly through VR/AR technologies; providing a more personalized experience than ever before.
By entering virtual worlds such as the metaverse, big name financial institutions like JPMorgan, HSBC Kookmin Bank and DBS are creating exciting opportunities for both themselves and customers alike – allowing them access to younger audiences who may not have been exposed traditional banking products before now; while providing customers with innovative banking services that can help them learn more about managing their money responsibly