Amidst the information of technology companies making land parcels & destinations that humans might need to own withinside the metaverse, banks have had a great share of metaverse mentions also. Earlier this year, JP Morgan Chase had become the first bank to open its workplace withinside the metaverse and different banks appear to have similar plans.
More crucially, after shunning cryptocurrencies for the maximum part of the last decade, banks are actually open to permitting their customers to invest in them. While metaverse has the capability for growth, what’s making banks involve themselves that much? Here are 4 reasons for it.
Engage with customers in a significant way
The wave of developing apps to get work executed swept via the banking industry also. Earlier, while one had to visit the bank for the smallest of tasks, banking apps distanced the banks from their customers.
At last, banking remains a business that needs humans to interact and banks are hoping to reconnect with their customers withinside the virtual world. Although placing a tiger to your virtual lounge is rarely the way to draw customers, banks will absolutely work on enhancing customer experiences withinside the metaverse and lead them for extra meaningful.
Leverage their trust in the virtual realm
The metaverse remains in its infancy, and if it does attain the capability that companies such as Meta believes it possesses, then it’s going to be a topsy-turvy world if not for trusted financial institutions.
If entertainment, play, & work are to show up withinside the metaverse, then digital payment addresses alone will not work and there could be a want for financial institutions which could deal with different cryptocurrencies and lead them to work seamlessly, simply as we do today in the real world.
Leveraging the trust made over decades, banks can expect the role of payment facilitators, in addition to help, understand genuine businesses and people from the pool of fraudsters in order to rush into the metaverse, as soon as it is more popular.
Carry real-world services into the metaverse
If you had been one of these people who expected a real estate growth withinside the metaverse, then you definitely possibly would not be amazed if JP Morgan or HSBC started lending services withinside the virtual world.
Irrespective of the kind of currency or platform used to construct the metaverse, events withinside the virtual world will reflect the ones of the real world. People will look to lease-out land parcels, make apartment agreements and borrow money on credit withinside the metaverse, simply as they do here. Banks can maintain to provide similar services at first after which evolve them to suit the desires of the metaverse.
Big money opportunity
Every time a company or a brand reveals its reason to be a part of this new virtual world, the valuation of the metaverse bumps-up a little. While JP Morgan referred to as metaverse a trillion-dollar market earlier this year, current estimates from the Citi Group peg its valuation at more than $13 trillion.
Brands and companies are speeding to the metaverse because of FOMO (worry of missing out) and the entire metaverse bubble may simply break earlier than one thinks.
However, if it does work out, it’s a big money opportunity for banks not to be part of in the future. Smartly, banks made small ticket expenses for their metaverse presence, not anything just like the top five spends we’ve seen in this space so far.
If it had been to come crashing down, banks might go about their business withinside the real world with rarely a scratch on their books.