Although many of us are turning to the vast social media applications of the metaverse, this new tech landscape extends far beyond the realm of socializing and entertainment and into more traditional sectors. The growth of virtual and augmented reality has enabled the buying and selling of goods in virtual environments, revolutionizing the way consumers transact online. This, coupled with many other innovations in fintech spending and services, is already beginning to bring new optimism for the emergence of open banking.
As a sprawling virtual space, fintech companies and more traditional institutions have quickly embraced the metaverse and the technology that drives it. JP Morgan (NYSE:JPM), for example, has been rushing to create its own digital lobby within the Decentraland metaverse, and HSBC recently opted to build its own space within The Sandbox, stating that “the deal opens up the door to other global institutions to continue innovating in Web3 as consumer adoption demands more robust experiences in the metaverse through decentralized and gamified offerings.
Asset management firm Grayscale highlights the potential the metaverse can bring to businesses across a range of industries. Across the entire addressable market for the Metaverse, we can see the vast potential for more comprehensive payment solutions and financial frameworks. With the metaverse being touted as a $1.4 trillion market opportunity, it’s certainly worth fintechs looking to the Web 3.0 era sooner rather than later.
While the metaverse is still many years away from reaching its full potential, we can already see it starting to build on the potential offered by open banking solutions. In the next few years, we may not be able to virtually browse our investment performance charts or digitally transport ourselves to a trading floor to view our cryptocurrency investments, but the emergence of Web 3.0 is about to fundamentally change our relationship with our money. Let’s take a closer look at how the next generation of the Internet will make this possible:
The future of data visualization
Having the ability to explore the rich levels of data users are producing about their spending habits, investment options, and various assets in an age of big data and unprecedented levels of insight is a key aspect of open banking.
The financial industry is becoming increasingly complex as it adopts new technologies such as blockchain and cryptocurrency, and users’ wealth can be distributed more diversely than ever before.
As the metaverse grows, AR and VR solutions will be able to generate experiences that can help users decipher complex information about their accounts. With that in mind, 2020 fintech book of the year author Vivek Dubey suggests we look to the model Salesforce implemented using Oculus Rift as a way to create a 3D space in which information can be broken down. .
“Constancy Labs, a subsidiary of Fidelity Investments, has also leveraged the innovation behind Oculus Rift,” adds Dubey. “They created a virtual world called ‘Stock City’ where stock portfolios are transformed into a virtual 3D city, where financial specialists can flood themselves with information.”
Such an evolution can pave the way for much higher levels of financial literacy and much more complete control over users’ financial management.
In the age of Web 3.0, we are likely to generate greater volumes of big data than ever before. It will be up to fintech companies to find more comprehensive ways to convert the data we produce into manageable visualizations that can offer actionable insights.
Today, it is still possible for users to access insights into spending habits through platforms such as Revolut – which has become an innovator in the era of open banking.
The road to accessibility
The metaverse will be the greatest tool for the development of open banking. Indeed, it can lay the foundations for a true democratization of finance.
By embracing this new digital frontier, fintechs can help move from a one-dimensional market to a more volumetric virtual landscape with different dimensions and a creative economy.
By leveraging an interconnected global landscape, the metaverse can pave the way for digital financial access for, ultimately, billions of users – who, in turn, will contribute to a thriving online economy.
In their commitment to take advantage of open banking, fintechs such as Revolut, Starling and Nubank (NYSE: NU) have already increased the number of channels available to users of a certain margin, making financial services, capital and assets more accessible to users around the world. .
By accelerating the growth of an industry that was initially slow to modernise, we can already see democratizing effects at work. This is especially true with Nubank’s success in providing banking solutions to those without access to banking services in Latin America.
As the metaverse continues to grow, we will see more and more users doing their banking virtually. In a borderless digital ecosystem, fintechs are being presented with an unprecedented opportunity to thrive globally. Leveraging big data insights and promoting financial literacy will likely only be the start of the open banking revolution.
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