How banking could benefit from the metaverse

In the past century, the banking sector has seen remarkable developments that have dramatically updated everyday banking as we know it today. Since the introduction of the credit card in the 1950s, each decade has brought significant technological advancement to the industry. cryptocurrency boom of the past decade. But what is the next technological advancement of banking? As we enter the era of Web3, could it be the metaverse’s time to disrupt the industry and level up banking as we know it?

In the 60s, the new tech was ATMs; in the 70s, the first e-payment was made; and in the 90s, infamous tech investor Peter Thiel and his co-founders revolutionised banking again with one of the few companies to survive the .com boom and bust, PayPal.

More recently, we witnessed the proliferation of mobile banking in the late 00s and, most recently, the Although the metaverse is not a new concept, with the term first coined in the sci-fi novel Snow Crash in 1992, the past few years have seen a significant advancement in consumer awareness and access to the metaverse, thanks to

cheaper devices and Meta’s huge push to own the space.

The metaverse is not just about gaming and entertainment. Businesses can use the technology to deliver more extraordinary B2B and B2C experiences for clients and customers alike. For example, at RendezVerse, we allow event managers to explore potential venues on the other side of the globe from the comfort of their office via the metaverse, saving time, money and significantly reducing carbon emissions. There are clear, real-world benefits to the metaverse in business which would be equally valuable in the banking space. In short, the metaverse could revolutionise banking, and it will be the early adopters who benefit the most from this early advantage.

In the first instance, by providing a personal banking experience in the metaverse, banks can help customers access the support and information they need without having to leave their homes.

While they could use web chats or call a helpline, the ‘face-to-face’ interaction of a metaverse meeting is far more valuable and engaging. When it comes to asking for financial advice, a personal connection and a sense of trust are vital in putting a customer at ease and finding the best solution for them.

Oftentimes physical banks are only open during office hours, so visiting the bank in person means taking time out of work. With metaverse banking, your visit ‘in branch’ can be easily scheduled into a lunch break, with no need to leave your desk.

Furthermore, with so few high street branches open nowadays and many customers using digital banks with no physical presence, the metaverse allows customers to experience the ‘physical’ interaction of in-person meetings without needing to open new branches.

Given that this moment marks the early days of the metaverse, especially for banking in the metaverse, those who choose to get involved now will have an undisputable head start. Early adopters will cement their presence within the metaverse and benefit from developing the best technology and customer service before the market is fully mature.

Banks that take the leap will make a powerful statement that they are innovators within the industry and willing to try new things to bring the best experiences to their customers.

Consider this, having a bank headquarters in the City of London, or in Bank itself, can provide a great deal of grandeur and publicity, but imagine being the first bank with a presence in the likes of Decentraland?

Unfortunately, HSBC has already claimed that title, but there are many metaverses out there, and even in these digital

worlds, it can be all about location, location, location. So, securing prime real estate for your bank in the metaverse will be a powerful marketing tool.

As a Web3 technology, the metaverse lends itself to offering other Web3 services, such as NFTs and cryptocurrencies. Not only because the tech can be easily set up for such transactions – with metaverses built on the blockchain – but because the audience of people who engage with a bank in this digital world is highly likely to be interested in these products. Consider the possibility of banks offering secure digital deposit boxes for people to hold their digital goods, such as NFTs, or acting as secure crypto wallets. If banks are the best place to store gold in the real world, perhaps they can become the golden place to secure digital currency and assets in the metaverse.

The gaming and entertainment industries have significantly benefited from entering the metaverse, and the world of business is beginning to follow suit. At RendezVerse, we are already seeing tremendous interest and value in using the metaverse for travel, hospitality, and events. Banking can benefit just as much.

With customer service in banking having taken a nosedive due to the closure of branches, the banks which choose to enter the metaverse will reap great rewards from their first-mover advantage, increased awareness, and ability to offer new technologies and digital products.

Peter Gould, CEO and Founder, RendezVerse