The Metaverse Revolution in Banking
Introduction
The metaverse is a virtual space where users can interact and engage with each other in a shared, immersive environment. In the financial services industry, it presents an opportunity for banks to connect with employees and new generations of consumers who are comfortable with digital interactions and expect seamless experiences across all touchpoints.
Banks Embracing the Metaverse
Banks in the GCC region are already exploring the metaverse as a new channel for their services and connecting with the wider ecosystem. For example:
- Emirates NBD: Launched a campaign in the metaverse for a startup accelerator.
- Commercial Bank International (CBI): Plans to launch a virtual branch in the metaverse to provide banking services to customers in the virtual world.
Opportunities and Benefits
The metaverse can be used as a sales and marketing solution by banks, offering innovative ways of interaction with clients through:
- Gamification: Engaging users through interactive games and challenges.
- Virtual events: Hosting webinars, conferences, and other events in the virtual space.
- Virtual banking assistants: Providing personalized assistance to customers in the metaverse.
The metaverse can also help build trust and loyalty with customers who may be more likely to use banking services if they are presented in an engaging and interactive manner.
Expanding Product Portfolio
Banks can leverage their expertise in products and services to introduce them to metaverse users, expanding their current product portfolio to meet new customer needs. Examples include:
- “Buy now, pay later”: Offering financing options for digital assets related purchases.
- Lending and insurance: Providing loans and insurance with a digital asset flavor (accepting NFTs as collateral, insuring a digital wallet).
Facilitating Crypto Adoption
Banks can play a role in the metaverse ecosystem by providing:
- Digital wallets: Allowing users to store, send, and receive cryptocurrencies and NFTs.
- Custodial services: Helping corporate clients manage their digital assets.
By bridging the metaverse with “in real life” (IRL), banks can enable fluid payment experiences in the metaverse, offering means of payment that can be easily linked to real-world bank accounts. This would facilitate seamless transactions between the virtual and physical worlds, providing a comprehensive banking experience for customers across both realms.