The Future of Financial Services Is in the Metaverse3 min read
The metaverse ecosystem has gained momentum and has already attracted millions of users and billions in investment. With so much money already flowing into it, the potential for banking and financial services stands out.
The metaverse’s impact
The metaverse is estimated to contribute more than $3 trillion to the global economy by 2031. In addition to those trillions of dollars, the metaverse will create new business models, jobs, and industry giants.
All companies operating digital channels must start to think about their metaverse strategy. However, the banking industry’s vast potential in the metaverse means this field should expand its thinking past using it as another channel.
The metaverse is still in its growth phase — it’s comparable to the early days of smartphones. There is still uncertainty about how it will evolve and shape its future.
And like those early smartphone days, successful first movers have a fantastic opportunity to capture significant market share and set future standards.
Metaverse’s potential in financial services
Communities within the metaverse have given rise to new marketplaces, where users can buy, sell, and trade virtual assets and services. It’s opened new possibilities for financial products and services, such as virtual currencies and banking.
The metaverse is currently fostering new business models, including subscription-based access to virtual experiences, advertising, sponsorships, and even real estate development.
Managing these assets requires a full set of financial services. To power this virtual economy, the metaverse needs everything from value exchange services to metaverse lending. As there are more economic transactions in the metaverse, it will facilitate the growth of virtual economies.
The best strategy for approaching the metaverse
Being a part of the metaverse as it starts to evolve and form around digital asset ownership and transactions requires a strategic approach from financial services companies. Agility is key but the promise is clear: users need ways to manage their metaverse transactions. Failure to develop user offerings in this space will cause them to go elsewhere, leading to lost business and lost revenue.
Financial services players must start shaping their metaverse strategy with three main steps:
First, the key is to form your own point of view on the topics that overlap between your current offerings and what is needed in the metaverse. Be sure to focus on which of your customers are already exploring the various parts of the metaverse.
Next, start with small-scale experiments to validate these ideas. These experiments will help ensure that your people and technology are metaverse-ready.
Finally, use the state of your organization’s digital maturity to determine the extent of your investment.
Moving towards your metaverse strategy
Though the financial services industry has a unique opportunity in the metaverse, it doesn’t mean other industries aren’t equally poised for success. Next week, you’ll find a practical five-step approach for leading your team into the metaverse, no matter which vertical you work within.