Technologies across industries have to adapt to the third generation of web browsing methods in order to stay relevant. Services and products offered by businesses are becoming more immersive, decentralized and digital than ever. This is true even for the financial technology industry. Entrepreneurs need to be aware of the many ways Fintech is breaking into the Metaverse.
The Economy and the Metaverse
Although AR and VR dominate metaverse developments, there are important financial aspects to the story. Consumers are increasingly drawn to immersive digital experiences and virtual assets that can be used as a digital financial model. This includes crypto, NFTs, and other virtual assets that are important in the layers of this metaverse.
Digital Assets
The popularity of non-fungible tokens is growing faster than the government can keep up with. They can be used to represent digital items, and they are a way for investors to make a profit. NFTs are controversial because they can be used by investors to steal art or use shady investing techniques. However, NFTs have the potential for driving the digital economy forward.
This technology allows brands to present their real assets and solutions within a digital decentralized environment through NFTs. Blockchain makes it possible to ensure that the system is immutable and transparent, which helps users understand the economy. NFTs can also be used to allow users to transfer digital items between platforms and access special features in virtual environments.
Digital Currencies
Digital currency is used to purchase and sell digital assets. Today, cryptocurrency is the best way to support metaverse trading. Sandbox, which is one of the most common Web3 uses cases, has an internal token called SAND that can be used for virtual land, buildings and accessories. It can be bought and sold on many cryptocurrency exchanges.
Modern fintech projects cannot miss out on the opportunity to invest in and manage wealth through a digital economy. MarketsandMarkets predicts that Fintech’s blockchain market will grow to $6,228.2 million by 2023, up from $230.0 million in 2017.
Fintech Services on the Metaverse
Fintech companies have many options to access the metaverse in order to provide services for clients. Examples of immersive digital banking experiences, trading cryptocurrencies and consumer-first digital payments options are just a few examples.
Immersive Digital Bank
The main reason brands use the metaverse to increase customer engagement is one of their primary reasons. Immersive virtual spaces in augmented and virtual reality are the most common metaverse technologies. Fintech can also benefit from this experience. Many fintech companies offer digital-only services via mobile apps and websites, rather than in-person locations. Virtual reality allows you to “visit” a bank in virtual reality. This is a very futuristic and exciting idea.
AR/VR technology can be used to enable users to check balances and pay bills in the metaverse. Users can also make transfers, make payments, and perform transactions in 3D environments using enhanced data visualization. Banks can also expand their role in the metaverse as custodians for customer assets by offering crypto-related and NFT-related services.
According to the Accenture Technology Vision survey, 67% of bank executives believe that metaverse technology will positively impact their business. There are already many successful cases. KB Kookmin Bank, a Korean bank, offers its customers the chance to interact with financial advisors via a virtual world. J.P. Morgan expanded its reach to Decentraland by launching the Onyx blockchain-based platform that allows banking services to be offered in this virtual environment.
There are many projects in development. If you’re interested in joining the metaverse, now is the time to partner with existing platforms and invest in fintech platforms that support metaverse technology.
Digital Payment Options for Consumers-First
Fintech companies are having great success offering digital payment options to consumers. This is in addition to digital banking on desktop computers and mobile devices. These include Meta Pay via their Messenger app, and Zelle’s online payment feature. This service is also offered by Zelle to traditional banks such as Huntington.
Although crypto and blockchain payments are the most popular payment method in the metaverse by far, it doesn’t mean that there aren’t other options. QR payments can be used to enhance the user experience by allowing you scan the QR code on the screen and then copy it into a mobile application.
AR technology offers users an immersive experience, as it allows for cashless and contactless payments. In 2016, Visa created an app in partnership with House of Holland to allow customers to shop at the store and place orders by simply pointing their smartphone at the product. This payment method is not new, but it could still be a competitive advantage for the brand, until it becomes mainstream.
Fintech Metaverse Apps
Businesses have a great opportunity to be part of the growing Web 3.0 with a Fintech metaverse app. Virtual assistant features, embedded financing, lending technologies and money transfer are some of the key trends in fintech. These technologies help fintech companies achieve their goals and offer better services to their customers.
Virtual assistant technology, for example, uses artificial intelligence to provide insight into customers’ spending patterns and assist them in making budgeting decisions. Digital fintech companies can also integrate with traditional banks to offer high-quality features for customers through embedded finance.
These are all the features that are most in demand when metaverse app development is in fintech. These businesses and the software developers that they partner with can decide how these apps will achieve their goals.
How can you prepare your Fintech business for the Metaverse Era.
This disruption is a sign that the next generation Internet is rapidly approaching. Fintech companies can take a variety of steps to ensure that they are ready for these changes, and remain relevant on the market.
It is a great idea to adopt metaverse technologies such as augmented and virtual reality and artificial intelligence, the Internet of Things and blockchain integration. These steps need to be practical and logical. While it is one thing to state that your company needs metaverse technology for fintech platforms, it’s another. It’s quite another to have a specific plan. One example is using your app’s virtual assistant to convert data into personalized financial advice for customers.
The metaverse is all about connection, personalization, and innovation. This is something that is very important to remember. These concepts must be embedded in your software and in your entire business strategy.
