Although we all have been using online banking since the last two decades , the metaverse might significantly bring something new to the banking industry. It’s possible that metaverse may radically transform the way large banks interact with their consumers, provide unique services, and open up new markets. Furthermore, it has enormous potential to attract new types of consumers, given the profile of typical Metaverse users.
JP Morgan, the largest US bank, has already accepted metaverse and is utilising the innovative blockchain technology of the metaverse in financial transactions. Therefore, we can anticipate that the metaverse will be the future technology for the fintech industry. Let’s highlight how it was before the advent of metaverse and then compare how it has revolutionised the banking sector.
Finance Before the Metaverse
Customers and lenders used to have to physically meet in a two-dimensional environment to use a bank’s services or borrow money. The transactional procedures relied substantially on physical work. The bank’s services were only available to customers who were there physically. The transition from in-person banking to digital banking, where everything is done digitally and without paper, followed. The need of a customer’s actual presence has been eliminated. The widespread use of digital banking has resulted in a comprehensive revision of the customer experience, with new priorities placed on things like decentralised and regulated data security and a focus on increasing customers’ sense of pleasure.
As the success of digital banking depends on maintaining and growing client connections, it works much like technology companies. Digital banking, despite their best efforts, is neither personalised nor interesting to clients. Traditional banks’ customer service, which relied heavily on human relationships, has declined as a result. To provide digital services to customers, automate the back-office process, and keep up with ever-changing regulatory requirements, traditional banks are always pushing transformation programs. One may counter that the customer’s experience with a typical bank is impersonal and boring compared to that with a commercial or retail brand.
