Metaverse Bank – The Next Big Frontier in Finance Sector
Metaverse bank facilitates customers to perform all banking operations in a 3D virtual environment that offers an immersive experience. In recent years, Metaverse is the buzzword in the technology world and starts to enter almost all industries. Banking and other financial services sectors have always been rapidly adapting to emerging technologies and the Metaverse is no different. Banks started to incorporate their services into the virtual world to keep their customers engaged. Build your own Metaverse bank with the guidance of the best Metaverse banking development company like Shamla Tech.
What is Metaverse Banking?
Metaverse banking is a method of performing banking services in the virtual world with a personalized and immersive experience. Banking metaverse can make them in a big way in the digital realm. Metaverse offers a diverse range of opportunities for the banking sector to leverage its potential to transform the way of banking, provide new goods and services, and open up new markets. It also has a lot of opportunities to reach new client segments, given the demographics of anticipated Metaverse users. Banking in the Metaverse provides various additional benefits for businesses, customers, and employees in the inviting virtual space. Develop a Metaverse Finance platform that facilitates customers to buy, sell, store, and trade digital assets efficiently.
Evolution of the Banking Sector
Banking is one of the domains that always innovate its services with new technologies. Over the past few decades, the digitalization of banking is tremendous in the digital world. Here is the evolution of the banking services which lead to the Metaverse financial services.
- Traditional banking
- Internet banking
- Open banking
- Digitalized finance banking
- Metaverse in banking sector
1.Traditional banking
It was a two-tiered banking system dominated by central authorities that depended on in-person transactions with clients. The procedure was infamous for relying on paper, being time-consuming, and lacking in financial goods that were individually tailored to each customer.
2.Internet banking
In the past few years, the banking sector has undergone complete digitalization. It was separated into two categories: the first involved digitizing current processes so that they could be accessed via mobile and the internet, and the second involved creating new consumer journeys to meet the desire of customers for a digital-first experience.
3.Open banking
The banking sector has made itself available to be linked with third-party services via APIs over the period. As a result, a number of neo-banks and cross-industry marketplaces offered by banks (such as health services, purchase and sell automobiles, energy services, etc.) have emerged.
4.Digitalized finance banking
With the introduction of Web3, the blockchain has spawned a brand-new, quick, secure, and global banking industry. NFTs and cryptocurrencies, which have completely new assets like art, gaming, and real estate to the financial system, play a significant part in this.
5.Metaverse in the banking sector
The Metaverse has exploded in popularity over the past few years across a variety of businesses, with banking being one of them. With virtual banking experiences gaining center stage, the sector is poised for yet another enormous revolution.
Leading Banks investing in the Metaverse
There are many investment giants starting to make a move in the Metaverse. Banks can revamp the way they interact with their customers using these advanced technologies.
JP Morgan
JP Morgan has become the first bank to enter the Metaverse by opening an Onyx lounge in the Decentraland Metaverse. They facilitate various services like trading, cross-border payments, financial asset creation, and safekeeping.
HSBC
HSBC is another bank that has acquired a plot at The Sandbox Metaverse with its own immersive technology portfolio. It plans for creating a new experience for custo mers engaging with gaming fans.
Standard Chartered
Just like HSBC, Standard Chartered bank has also invested in the plot in The Sandbox. It will be developed for experimenting and creating new experiences for clients in the virtual world.
Siam Commercial Bank
Siam Commercial Bank has become the first banking group to build a headquarters in The Sandbox. The virtual space comes with 3 zones,
- Virtual hub – A space for events and knowledge sharing
- Virtual land: A space to connect with partnered businesses over project development activities
- Hub: It supports local artists through the NFT gallery, NFT marketplace, and virtual concerts.
These are just some of the top names in the virtual banking space, there are many other banks that are showing great interest in entering the Metaverse.
Implications of the Metaverse on Banking
The banking industry can learn from JP Morgan’s expectations for the Metaverse as a whole. This immersive platform enables clients to transact, socialize, create, own, and experience in unprecedented ways. Metaverse will become the future of banking, here are some of the implications of this immersive technology.
Cryptocurrency transactions
Every transaction decision in the Metaverse is based on a cryptocurrency system as it is built on distributed ledger technology or blockchain. As a result, banks and other financial institutions will need to adjust to cryptocurrency transactions and support the main digital wallets that clients may be using.
NFTs as regularized assets
Banking consumers will want to invest in NFTs in addition to making deposits, policy payments, and mortgage payments in cryptocurrency. Customers may wish to invest in both NFT art and virtual land since this will eventually function similarly to how real-world property does today. Banks will become a common asset class through collaborating with regulatory organizations.
New Platform
As the integration of this advanced technology increases, customers will anticipate the digital presence of the bank to extend to the Metaverse. In coming years, the need for virtual banking could become a business imperative just like a mobile app, a chatbot service, and an online banking platform are used today.
Web 3.0-compatible banking systems
Financial institutions will require new core banking systems that are Web 3.0 compatible in order to adapt to the Metaverse. Web 3.0 will be infinitely more democratic and decentralized than Web 2.0. This necessitates a total rebuilding of back-end systems, similar to the transformation seen in banking during the social media age.
How Shamla Tech helps you build a Metaverse banking solution?
Shamla Tech is a leading Metaverse development company that helps you create advanced Metaverse banking solutions. We help you create a Metaverse banking platform with emerging blockchain technology to ensure a high level of transparency and security. Our team of Metaverse developers helps your business to offer a fascinating virtual experience for your customers and employees as per your business objectives. We assist you in developing a Metaverse banking solution that can be customizable, and compatible, and also provides financial value for your business. Metaverse will revolutionize the banking sector in the future and becomes mainstream.
