Applications of Metaverse Technology on Banking Services: Opportunities and Challenges

Abstract

Abstract This chapter focuses on unearthing the metaverse technology impacts on banking services, both the underlying opportunities it brings and the challenges it imposes, along with its long-term effects on the industry. The tremendous strides made in the field of technology have impacted every industry, and banking is no different. Metaverse technology further catapults banking services into an unknown realm of possibilities and challenges since the advent of modern technology. Metaverse technology is an upcoming virtual interconnected universe where users can connect with each other and digital entities at the same time in real time. Banking will open up a lot of avenues to redefine customer experience, build new financial products and make the customers sticky. Deploying metaverse technology in a banking system comes with a whole host of challenges, including technical complexity, security, privacy and compliance. More insights on the dos and don'ts of this as well as what to measure in terms of success would be found by looking at cases from those banks that have successfully rolled out metaverse technology. So, for banks to come out of their shells and sustain themselves in a competitive world of financial services, understanding metaverse technology in banking is essential. This chapter attempts to uncover the subtlety of metaverse technology on banking services, their promise and perils and the consequences that may stick with this industry forever.