From an industrial purview, metaverse’s potential seems to be analysed in regards to how it can help financial technology (fintech) industry benefit global financial landscape. As stated by Statista, a market and consumer data platform, it’s been predicted that 30% of global businesses will have metaverse-oriented products and services prepared by 2026. It’s believed fintech services associated with metaverse have added “direct-to-avatar” (D2A) sales, to enable customers be a part of the immersive experience. In a conversation with FE Blockchain’s Ritarshi Banerjee, Kanav Singla, founder, CEO, Metadome.ai, a 3D and XR technology company, talks about how metaverse has impacted banking and its importance of virtual or augmented reality (AR/VR) in fintech. (Edited Excerpts)
What can be the influence of metaverse on fintech industry?
I think metaverse has influence across industries, including banking and technology. According to Goldman Sachs research report, metaverse could lead to a $12 trillion virtual economy, for cross-border payments and creation, storage and trading of financial assets. Just like Internet banking and digital payment platforms, metaverse requires a payment system. From what it’s understood, one of the ways to prevent financial fraud in metaverse is to trade in cryptocurrencies. The emergence of 5G technology and Web3.0 is expected to decentralise the web and reduce the risk of financial frauds in metaverse.
How can metaverse-based fintech prospects benefit global banking landscape?
I believe metaverse enables customised banking through VR/AR. Metaverse can provide banks with a chance to investigate how they might assist customers in connecting their fiat assets with their digital assets. Allowing 3D experiences is expected to be critical to the future of metaverse banking. Furthermore, banks can use metaverse to deepen their relationships with customers, help restore conversations that are believed to be lacking in digital channels and help create an experience for the bank’s next generation of customers.
What are the applications of fintech in metaverse?
It’s believed that metaverse has applications in fintech, and companies are reportedly exploring its potential in various areas of financial services. Some of the examples of how metaverse can be used in fintech are to create virtual marketplaces where users can buy and sell goods and services using digital currencies, providing a platform for trading digital assets, including cryptocurrencies, non-fungible tokens (NFTs), among others. Moreover, fintech companies can use metaverse’s decentralised infrastructure to create new trading platforms that offer security and transparency.
How is fintech expected to utilise metaverse going forward?
With the advent of cashless payments, they aim to become the foundation of financial transactions in the metaverse economic ecosystem. The metaverse aspires to be the digital platform for personal and professional connections. Moreover, financial data management and financial transaction management for real-world scenarios supplied by financial technology solutions intend to contribute to the meta-universe, which is expected to become as important as real-world situations. The ability to manage finances and transactions is essential to making this environment as immersive and realistic as possible.