With virtual assets already being traded and sold in the metaverse, there is an inevitable demand that financial services, specifically banking, ensure secure payments, investments and transactions for all customers. We take physical and online banking security measures for granted, but how do these regulations and safeguards translate to a virtual world?
Luckily, banks have a long history of dealing with fraud in the real and online markets. Forward-thinking banks are already thinking about the metaverse as well, as they seek to capitalize on the untapped potential that an immersive, memorable and personalized customer experience offers. Pilot programs are already underway for connected experiences in areas such as 3D banking and personalized virtual banking. Innovative payment platforms and decentralized autonomous organizations (DAOs) will also make their way to the metaverse, creating a safe and engaging banking experience for the next generation of customers.
Why banking is a natural for the metaverse
At first glance, banking and the metaverse may seem unlikely allies. After all, banking is a conservative, heavily regulated industry. Yet in some ways, banking is an obvious metaverse participant, as the backbone for safe and secure virtual transactions, enabling other industries to thrive. Delivering financial services through Web3 — the decentralized internet owned by communities of users and coordinated through mechanisms such as tokens and non-fungible tokens (NFTs) — is a natural way to meet the demands of young consumers primed for interactive experiences.
Consider that millennials, who led the way in disrupting personal finance through mobile banking, now have a greater awareness of the metaverse than their younger counterparts. They take their money seriously — 75% report they work with a professional financial advisor — and Gen Z isn’t far behind. Among those aged 18 to 24, 70% check their finances daily. They’re likely to follow “fin-fluencers” on platforms such as Discord, Reddit and Instagram. Also, 41% percent have sought financial advice on TikTok. (Yes, “FinTok” is real.)