Dolce and Gabbana had a peculiar sale last year. Their customers paid $5.7 million to the fashion conglomerate for basically… Nothing. Or that’s what people who do not understand virtual reality would say. In fact, the company sold primarily virtual products for customers to use in the Metaverse. This is why the Metaverse economy experienced retail sales of more than $20 billion with an annual growth rate of around 40%.
This is the mere beginning of using digital assets as a repository of value. It is the beginning of a digital renaissance, encompassing AR, VR, and other digital immersive technologies, which will lead to wide-scale adoption and regulations. Cryptocurrencies will also play a crucial role in this.
Financial institutions must secure their position in this enormous and novel part of the economy by incorporating Metaverse and crypto into their services and business models. This will lead them to a cryptocurrency-fueled metaverse economy.
As the metaverse users increase, financial transactions in the new realm will increase. The government will issue new regulatory guidelines in the coming future. But it is unwise not to adopt early. Banks and institutions should not wait for this. Instead, they should embrace the metaverse economy. Here are some of the ways in which this is possible.
Build And Leverage Trust
Customers usually trust banks more than even the government. This should be utilized in a positive fashion. Tap into the customers’ interests in crypto and digital assets. Despite the standard expectations, 45% of Boomers used cryptocurrencies to make a purchase, compared to the 30% of Zoomers, in 2021.
Mastercard is processing crypto payments and paving the way for other institutions to follow suit. Offering custody services and processing crypto payments help banks prepare for the digital future. Even mortgages, loans, etc., will have digital asset involvement. Banks and banking technology may also leverage their brand identity in user verification and risk management as more peer-to-peer crypto transactors want to trust authentic payment sources.
Metaverse Payment Platforms: Adopt The Boon
Metaverse virtual reality is all set to take over the shopping experience for customers. The fundamental fintech future will be altered to adopt the new paradigm. Financial institutions must process transactions on metaverse payment platforms to accommodate the customers and their needs. A trial pilot by Facebook, the Whatsapp digital wallet is the beginning of this transformation. It offers benefits like zero fees for international transfers, etc.
These methods have so much potential and versatile applications. For example, such platforms will help fasten transactions and secure the customer’s safety and privacy. Moreover, the institutions can either provide such platforms or integrate the accounts into existing payment apps by utilizing their APIs. But it is noteworthy that most of these apps adapt to phones and screens and ARVR technology.
The metaverse economy is in the infant stage. But once it starts flying, the entire system will soar. This is the ripe time for banks and financial institutions to secure the fintech future. This is where banking technology ups its game a notch with payment platforms.
Integrate With AR And VR Platforms
Providing payment platforms in the new paradigm is essential. But banks need to do more than that. They need to integrate with the metaverse virtual reality. Banking technology must evolve to increase its presence in the Metaverse while ensuring that customers spend more time in it.
This may be done in multiple ways:
- Communications with customers- Include AR and VR where it is appropriate.
- Increase Visual Presence- Transactional experiences should be encapsulating and immersive.
- Explore the New Age Ads- Advertising is evolving along with technology. Digital billboards, avatars of celebrities, etc.
Banks In The Metaverse
The future of fintech is mainly altering. But it is not unpredictable. We may not be able to say how the Metaverse will affect us or how it will look, but we sure can understand how it can be leveraged. Financial institutions should not wait for regulatory guidelines to adapt to evolving technology. They must learn how to leverage their unique attributes.
Utilizing their attributes to meet the wants and needs of the customers helps and navigate the digital transition successfully. This includes the desire to be a participant in the metaverse and crypto economies. But all these financial institutions and banks need a reliable and trustworthy service source. A resource marketplace where you get all that you require. Signzy can help you with the best customizable APIs and resources with our efficient AI-based rule engine and technology.
Signzy is a market-leading platform that is redefining the speed, accuracy, and experience of how financial institutions are onboarding customers and businesses – using the digital medium. The company’s award-winning no-code GO platform delivers seamless, end-to-end, and multi-channel onboarding journeys while offering totally customizable workflows. It gives these players access to an aggregated marketplace of 240+ bespoke APIs that can be easily added to any workflow with simple widgets.
Signzy is enabling ten million+ end customer and business onboarding every month at a success rate of 99% while reducing the speed to market from 6 months to 3-4 weeks. It works with over 240+ FIs globally, including the 4 largest banks in India, a Top 3 acquiring Bank in the US, and has a robust global partnership with Mastercard and Microsoft. The company’s product team is based out of Bengaluru, and it has a strong presence in Mumbai, New York, and Dubai.
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Written by an insightful Signzian intent on learning and sharing knowledge.