Metaverse: The next frontier of innovation in banking

Our research 16. January 2023.

There is no doubt that the Metaverse is the new buzzword in the world of business. It promises to transform customer engagement and deliver a captivating and immersive experience to customers. But what does this mean in the banking industry?

 First things first…Why the hype?

Since 2021, when Facebook changed its brand name to Meta, the word “metaverse” became mainstream, with many industry experts considering it the next paradigm shift in technology. Being the future of the Internet, a massive scale of money flowed into metaverse-related investments, with more than $120 billion being spent over the first half of 2022. With its prospect to reach up to $5 trillion in value creation by 2030 according to analysis by McKinsey & Company, the metaverse is too big for companies to ignore.

The potential of this possibly world-changing technology is also recognized by consumers who by 2026 are projected to spend at least one hour a day in the metaverse for work, shopping, education, social media, and/or entertainment, according to analysis by Gartner.

The potential of banking in Metaverse

Banks are no exception to sweeping digitalization: the Metaverse will transform them, too, becoming the new medium to further humanize the digital banking experience. By bridging the gap between the real and the virtual worlds, banks can deliver empathetic and personalized services and build trusted relationships with customers.

Three ways to best approach the market

To make their presence felt in this new and exciting realm, banks can take adopt three different go-to-market approaches:

  • Digital assets

As digital assets like NFTs, crypto currency, and virtual real estate are growing in popularity, banks should tap into this growing market by processing payments and offering custody services against them.

  • AR & VR technologies

As the world increasingly moves online, banks should integrate AR and VR technologies to create immersive customer experiences and overlay digital information on the physical world.

  • Metaverse payment platforms

As the Metaverse and its shopping options grow, banks should provide customers digital platforms to process these financial transactions, allowing users to connect their bank accounts to existing payment apps.

Tap into the metaverse – Choose the right partner!

One of the best ways to unleash the full potential of the metaverse and reap its benefits is to leverage FinTech scaleup innovation and actively engage in startup-corporate collaborations (Corp-Up).

As the selection of the right partner is key to a successful collaboration, banks should pay attention to a series of factors:

  • Identity management: Maintain the linkage between the virtual avatar and the real customers’ identity
  • Security and privacy: Secure data flows between AR and VR devices and ensure data protection
  • Fraud and risk management: Enhance fraud management and risk controls in a decentralized model
  • Integrated CRM: Store and manage customer context and use it effectively in customer management

Looking for your bank’s key to the Metaverse? rooom checks all boxes

MMV portfolio scaleup rooom provides a self-service all-in-one platform for creating, managing and sharing interactive virtual experiences in 3D, AR and VR enabling higher consumer engagement and new revenue streams.

Join our webinar to learn how to create value in the metaverse

On January 18th 17.30 CET Match-Maker Ventures will explore the key success factors of startup-corporate collaborations (Corp-Up) in banking, together with industry experts from RBI, Elevator Ventures and rooom.

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