While Keanu Reeve asking this question in the movie was an act of fiction, in our real world today there are many who are asking the same question referring to metaverse. For most, the extent to which they can stretch their imagination is thinking of it as a virtual space conceived on augmented reality and built for socializing. While much is being discussed on metaverse based products and frameworks in the last few years, the fact still remains that so far it still is being associated mostly with AR or VR based gaming platforms. Which is only partly true because while the first few use cases on metaverses have been associated with gaming and social ventures, however the applicability of it is much wider. So how exactly is the idea of a metaverse being extended to use cases beyond the obvious? We shall explore the same in this article with specific focus on banking domain.
BANKING ON THE MATRIX !
In a target metaverse ecosystem (not so much in the future) its envisioned that we can consult our investment banker about managing our funds, get personalized products conceived across the table, and meet a credit appraiser from our home by wearing a pair of virtual reality glasses. Interesting as it may read, this is how metaverses will integrate with banking and make virtual Banking a reality. We will make an attempt here, to explore as how the fusion of metaverse and banking could create an interesting ecosystem that will enable wider participation. Analysts project that this economy is set to boom in the coming years, and there are strong reasons to make this assumption. Consider these industry wide developments for example:
- Mckensey in its report estimated a $120 billion of investments in metaverse ventures, that has happened the first five months of 2022 by corporations, PEs, and VCs.
- KPMG estimates ~$13 trillion per year revenue to be generated by metaverses by 2030. While Goldman puts that estimate at around $8 trillion.
- Microsoft acquired Activision Blizzard for ~ $69 this year.
The above data, points to the fact that funding and public interest in metaverse has really exploded over the past year and it is not just limited to gaming but is instead across a diverse spectrum of industries amongst which, banking and financial services space is definitely one.