Niraz Buhari a Financial services Entrepreuner gives his view on the metaverse and its application for Financial Services Industry, JP Morgan was the first bank to join the metaverse with considerable hype early this year. The US investment firm acquired a vast property in Decentraland and its Onyx Lounge features a rowling tiger.
Since then, South Korea’s Kookmin Bank has expanded its customer service options by offering metaverse-based one-on-one consultations. HSBC later followed suit by creating a bank in the established Sandbox section of the metaverse, while the UK payments firm Sokin recently announced its impending entry into the augmented reality platform.
Initiated in 2021 Sokin is a supplier of next-generation payments rather than a bank, but the fintech will enable complete eCommerce payments for the first time in the metaverse, enabling brands and enterprises to expand into the virtual world. Currently, there is no one metaverse world where customers can shop for their favorite companies. However, Sokin will develop its own metaverse community that is capable of handling complete eCommerce transactions.
There is currently no one metaverse environment where people may shop for their preferred brands. Nevertheless, Sokin will establish its own metaverse community capable of managing comprehensive eCommerce transactions.
Niraz Buhari said Despite its beginnings in gaming and social media, the Metaverse has expanded its applicability to established industries. Several practical uses of Metaverse technology, such as Virtual Reality (VR) and Augmented Reality (AR), have eased the purchase and sale of commodities in a completely virtual setting. These virtual settings allow businesses to get more exposure without geographical limitations, therefore transforming the way we purchase and make payments.
This has resulted in a redesign of the purchase choices and interactions of consumers, resulting in the subsequent development of consumer spending habits. In addition to the retail business, Metaverse technology is also reshaping the future of employment in the financial services industry.
Assisted by chat, annotation, and screen-sharing, VR and AR have allowed coworkers to interact effectively when not in the same physical location, as a result of remote working circumstances facilitated by COVID-19. Individually, these technologies are very beneficial for data visualization and the analysis of financial risks.
However, the crowning achievement of the Metaverse’s practical uses is its capacity to deliver more ease to both professionals and clients, via the implementation of VR and AR in client-facing scenarios and this has led to several R&D projects in the C&C group led by Mohammed Niraz Buhari. The incorporation of digital technology into conventional industries, such as banking, has boosted customer expectations about the services they expect to get. Once providers have made these services accessible, rivals that desire to maintain their relevance must stay up with technological developments.
The expansion of the Metaverse is seen as the next inexorable technological advancement, with millions of dollars being invested in virtual experiences and infrastructure, as well as continual financial incentives for innovation and competitiveness. The EU’s Digital Competition Commissioner, Margrethe Vestager, has said that antitrust regulators will confront the difficulty of developing a complete virtual reality ecosystem.
As with every technical advancement, businesses must strategically utilize the Metaverse. Virtual expansions need human connections to increase client acceptance rates. This will guarantee that Metaverse services are the obvious choice when compared to non-virtual alternatives.
The widespread use of Metaverse also raises ESG issues, which businesses must handle appropriately. To produce Metaverse services that consumers can rely on and that align with their values, businesses must use them judiciously by analyzing anticipated commercial consequences and monitoring their environmental effects. This must include the whole rollout process, from strategy and design to engineering and execution.