The financial services industry can play a much more significant role in the development of the metaverse beyond setting up virtual branches
The financial crisis of 2008 led to a wave of innovation in the financial services industry, resulting in what is popularly referred to as FinTechs. Metaverse has become the next buzzword across industries ranging from retail, media & entertainment to financial services. The venerable JPMorgan Chase made headlines recently by setting up shop in the metaverse. Many other financial institutions have also been reportedly getting their metaverse strategies in place. The concept of metaverse or an ‘alternate reality’ in the digital universe is not new. It has been around for more than fifteen years, restricted mainly to gaming and social media. European financial institutions such as ABN AMRO and ING set up virtual branches in virtual reality platforms more than a decade ago, only to shut down soon. The initial forays of financial services companies into the metaverse were primarily driven by branding and visibility. However, this is expected to change as the metaverse becomes mainstream.
[This article has been reproduced with permission from the Indian School of Business, India]