The Metaverse is a virtual reality platform that allows users to create and interact with digital assets. According to Farnoush Farsiar, a renowned businesswoman with a long-established career in finance, this could hugely impact the financial services industry. Here’s why.
The Metaverse allows users to create digital assets that represent real-world assets. This could revolutionize the way services in the field of finance are provided.
For example, imagine being able to trade stocks and bonds in a virtual world that represents the global stock market. This would make it easier for investors to conduct research and make trades.
The Metaverse also allows users to interact with digital assets in a virtual world. This could be used to improve customer service for financial institutions.
For example, imagine being able to ask your bank questions about your account or investment portfolio. This would allow you to get answers quickly and easily.
The Metaverse could also be used to create virtual worlds that represent different markets in the finance industry. This would allow investors to diversify their portfolios and hedge against risk.
Farnoush Farsiar is a veteran in the banking and wealth management industry. She has seen firsthand how the Metaverse can impact financial services.
In her opinion, the Metaverse will revolutionize how financial services are provided. She told researchers, “The Metaverse will allow users to create and interact with digital assets in a virtual world. This will improve customer service for financial institutions and make it easier for investors to conduct research and make trades.”
Why are Banks and Fintechs Entering the Metaverse?
The potential benefits of the Metaverse in finance are vast, and banks and Fintechs are just beginning to explore its potential. The Metaverse offers faster processes, an attractive customer experience, and lower operating costs.
All of which hold enormous potential for banks and insurance companies. This is especially true considering that nearly half of bank customers won’t stay loyal to the same bank. Unless they’re receiving some sort of benefits or preferential treatment.
In addition, the Metaverse provides a new platform for developing innovative products and services. Banks and Fintechs that enter the Metaverse early will be well-positioned to take advantage of this new frontier. Most importantly, many banks and Fintechs are joining the Metaverse to:
- Reinvent existing customer and employee experiences: The Metaverse offers a unique opportunity to create new customer experiences that are personal, interactive, and engaging.
- Engage with customers in new ways: The Metaverse provides a new way for banks and Fintechs to engage with customers. By entering the Metaverse, banks and Fintechs can offer customers a new level of service and interaction.
- Invent new products and services: Unlike the real world, the Metaverse is a blank canvas. This provides an opportunity for banks and Fintechs to invent new products and services that don’t exist in the real world.
According to Farnoush Farsiar, the Metaverse will not just open up a new world of possibilities for financial institutions. It will create entirely new industries.
“The Metaverse will give rise to new industries that we can’t even imagine today,” she said. “This is a once-in-a-generation opportunity, and those who enter the Metaverse early will be well-positioned to take advantage of it.”
What Will Financial Services Look Like in the Metaverse?
The opportunities for financial service firms are vast in the Metaverse. Some banks are already trialing VR devices for one-to-one consultations with customers and staff in the Metaverse.
This allows banks to offer a more immersive and personalized experience. Not any personalized experience but one that can better engage young people, build customer loyalty and retain clients.
This is particularly important considering that not only acquiring new customers is significantly more costly than retaining existing ones. It actually costs five times more.
Farnoush Farsiar believes that the Metaverse will allow banks to offer a more humanized service. “The Metaverse will provide an opportunity for banks to connect with their customers on a more personal level,” she said. “This will allow banks to build trust and loyalty with their customers.”
Regarding how financial services will look in the Metaverse, Farnoush Farsiar believes that there are five major trends that will shape the future of financial services in the Metaverse:
- The rise of digital currencies: As digital currencies become more and more prevalent, they will have a major impact on the financial services industry.
- The rise of mobile payments: Mobile payments are already on the rise, and they will continue to grow in popularity in the Metaverse.
- The rise of blockchain: Blockchain is already having a major impact on the financial services industry, and this will only continue in the Metaverse.
- The rise of artificial intelligence in finance: Artificial intelligence will play a major role in financial services’ future, helping firms automate tasks and make better decisions.
- The rise of virtual reality: Virtual reality will revolutionize the way financial services are provided, offering a more immersive and personalized experience.
Farnoush Farsiar Thinks It’s a Unique Opportunity for Banks to Reinvent Themselves
According to Farnoush Farsiar, this is a defining moment for banks. Leaders need to step back and rethink their business for the next decade. “We cannot just digitize our existing businesses; we need to re-imagine them,” she says.
Farnoush Farsiar believes that the Metaverse provides a unique opportunity for banks to reinvent themselves. These may be just the early days, but the Metaverse will take shape and advance very quickly.
Businesses in the finance industry that do not act may find themselves operating in unfamiliar worlds. Those designed by and for someone else. The Metaverse offers a unique opportunity for banks to define themselves on their own terms.
By creating their own virtual worlds, banks can control the user experience from start to finish. They can create innovative new products and services tailored to digital customers’ needs.
And they can build deeper relationships with customers by creating engaging, interactive experiences beyond the traditional banking relationship. And as Farnoush Farsiar puts it, “Now is the time for banks to seize this opportunity and define their digital future. Those who act now will be well positioned to thrive in the metaverse era.”