Since financial institutions increasingly turn to their technology teams for innovation to secure market share or expand their presence, Metaverse, a virtual-reality space, is expected to gain popularity in the coming years, including in GCC nations that would need to adopt it to stay competitive.
Metaverse technologies, such as Virtual Reality (VR) and Augmented Reality (AR), have made virtual product buying and selling easier. And this is changing the way we purchase and pay, resulting in new consumer spending patterns.
At the same time, incorporating digital technologies into conventional areas like Banking and Finance has raised consumer expectations for the services they receive.
Metaverse in Finance and Banking
The Metaverse’s ability to construct virtual settings for individuals to connect may significantly impact the financial industry. For example, during COVID-19, VR and AR facilitated improved collaboration through teleconferencing, allowing professionals to work efficiently while not in the same physical place.
 VR and AR can also help banks analyze financial risks and provide more precise services to customers.Â
Consumers can use virtual environments as well. For example, creating digital shopping environments in the Metaverse allows businesses to reach a global audience. This means that transactions can be made entirely within the Metaverse. AR can simulate different financial scenarios so that customers can easily visualize them.
The use of Metaverse in banking may lead to the emergence of fully digital bank branches, reducing or even eliminating the need for physical ones. These client-centric developments can enhance the consumer experience.
VR or AR allows you to digitally superimpose a more excellent range of information than mobile devices or computer screens can accommodate. This augments existing mobile banking tools like apps that show users their account balances or guide them to nearby bank offices.
However, the Metaverse alone does not ensure better customer service in any industry. A strategic approach is required to assess the Metaverse’s potential to benefit businesses. Focusing on human touchpoints inside the digitized experience can deliver individualized services and credibility to customers.
Future Potential
Analysts expect metaverses to become an US$ 800 bn market — although some go so far as to say it will be worth US$30 trillion or more by 2030, significantly affecting a wide range of sectors led by the financial industry.Â
Giant IT corporations are spending enormous sums of money, time, and resources in the area. As a result, global Metaverse revenues are expected to rise from US$ 45.5 bn in 2019 to US$ 1.5 trillion in 2030, according to the PricewaterhouseCoopers consulting firm’s projections.