All You Need To Know About Banking In The Metaverse

Satya Nadella, CEO of Microsoft said, ‘The metaverse is here and it’s not only transforming how we see the world, but how we participate in it.’ To understand metaverse banking, it is first important to make sense of the metaverse, which everyone interprets differently. Put simply, it is the internet experienced in 3D, where you can socialise, have fun and conduct business in the virtual world.

Now, there’s no denying that digital banking and FinTech have become widely prevalent in the financial ecosystem across the world today. In India, Covid-19 was the real accelerator, which forcefully propelled both businesses and individuals to adapt to digital ways of transacting with money. The Government of India has also backed initiatives in banking, with digital and neo banks emerging as dynamic solutions. While other demographics are hopping onto the digital-only bandwagon, it is Gen Z that has truly embraced this way of living life. The metaverse has the newest tool to take banking services to the next level for them.

As per a report earlier this year by Morgan Stanley and Goldman Sachs, metaverse is set to be an $8 trillion huge market, with banking playing a pivotal role. ‘Metaverse banking provides a virtual and immersive environment for banks to create customer experiences that are akin to walking into a branch and transacting,’ says banker Nethra Jagan. ‘They marry the best of the digital and the real world. Banks ideally need to tie up with FinTech companies offering this service, to maximise the customer experience. In India, the Union Bank of India opened a virtual lounge called Uni-verse last year, making it the first to foray into the metaverse. Since then, other banks like the PnB and Bank of Maharashtra have taken baby steps into this domain. But India’s first complete banking metaverse called Kiyaverse was launched by Kiya.ai this year.’

Adds Nethra, ‘With metaverse banking, a lot can be done. It’s different from digital banking because it is built on block chain movements. The pressing question is – doesn’t digital banking satisfy all your digital needs? Why do you need metaverse banking as well? It has a more customised approach to serving customers which also includes personalised product recommendations that can really help them make good financial decisions. Customers can also choose their own avatars and customise them. Rather than engaging with a chat bot or a flat screen, the avatar of a bank teller might be more exciting. Or even meeting your bank manager’s avatar in person using VR/MR.’

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