Home > Resources > Articles > A Guide to Banking in the Metaverse: Part 2

A Guide to Banking in the Metaverse: Part 2

Shefali Vasave | July 14, 2022 | 227 views | Read Time : 02:28 min

A Guide to article
In the first part of this article, we took a dive into what the metaverse is in the context of banking, what its benefits are and how it is affecting bank and consumer relationships now and in the future. Metaverse banking is undoubtedly the next phase of banking, but is it really a new concept? While the component technologies of the metaverse have been around for a while, their convergence has ushered in a new period of innovation for the banking industry. According to Accenture’s Technology Vision 2022 survey, 67% of banking executives worldwide believe that the metaverse will impact their organization positively, while 38% state it will be a transformational technology.

Here are some organizations that are at the frontline of the metaverse banking revolution.


KB Kookmin Bank:

One of South Korea’ s most prominent financial institutions, KB Kookmin Bank, has a virtual bank that allows customers to access their financial information as well as get professional advice from a financial advisor through a VR-based interaction.


BNP Paribas:

The global banking group has a VR alternative for their retail banking customers. It offers a virtual reality app that enables users to access their account activity and transactions in a VR environment.


Bank of America:

Going one step ahead with its workforce management and training, Bank of America uses VR to train staff at its 4,300 financial centers across the country. VR environment training lets bank employees do complicated tasks in a simulated environment where they learn how to interact with customers and make sales.


J.P. Morgan:

J.P Morgan launched an Onyx lounge, a virtual lounge in the metaverse of Decentraland, which is itself a blockchain-based VR system. The bank enables cross-border payments, trading, foreign exchange, and financial asset creation, while Onyx facilitates blockchain wholesale transactions.


HSBC:

HSBC has gone ahead and bought a plot of land in the metaverse called The Sandbox, aimed at engaging sports and gaming fans.


The Challenges Ahead and the Takeaway:

As in social media or interactions in the real world, banks and other brands may be exposed to a variety of legal issues by using metaverses. Similar to how many didn't anticipate the potential adverse effects of personal abuse and the dissemination of "fake news," the extent of the risks may be difficult to predict at this stage.

Despite the challenges, the metaverse offers an exciting possibility for banks. It could reduce the friction between modern digital platforms and offer a seamless consumer experience and a new way to move data without hindering security and data privacy. It’s a radical new technology, and financial institutions who are still considering its impact must start planning to enter the metaverse in the next couple of years.

Spotlight

Eurex Clearing

Eurex Clearing is one of the leading central counterparties globally assuring the safety and integrity of markets while providing innovation in risk management, clearing technology and client asset protection.

OTHER ARTICLES
CORE BANKING

Why Payments-as-a-Service is the first choice for FIs

Article | April 15, 2021

The pace of change within the global payment’s technology space is still at full speed with no sign of slowing down. While traditional incumbents have until recently taken comfort in their size and decades of dominance, new digital-only challenger banks are ramping up and making a huge impact on the global financial landscape.

Read More
CORE BANKING

BIG TECH IN FINANCE: A DEEP DIVE INTO THE FUTURE OF FINTECH

Article | July 13, 2022

The following article looks at Big Tech and its impact on the financial services sector. Whilst competition from small fintech startups will certainly take away some market share from traditional banks, the impact of “GAFA” could be huge. The fintech movement did more than unbundle banking and its core services — it spurred financial inclusion across Asia, increased overall economic growth, and made significant inroads into the finance value chain. The born-digital companies brought technology to the forefront, attacking the traditional risk-averse sector from various points — digital payments, insurance, P2P lending, and investment management, among other avenues.

Read More
CORE BANKING

How Fintechs Expanding in Latin America Can Build Trust with SMEs

Article | July 13, 2022

Small businesses in emerging economies are notoriously underfinanced. Despite making up over 99.5% of the economy in Latin America, SMEs face a financing gap in the trillions of dollars. For example, up to 78% of small businesses in Argentina and 45% in Peru struggle to grow because of financial constraints. Numerous articles and institutional white papers point to the lack of trust between banks and SMEs as a major cause of this financing gap. Banks simply do not know how to accurately calculate small business risk, especially in volatile economies in Latin America, so they offer high interest rates or pass on providing credit altogether.

Read More

Could Google Acquire Tesla For $250 Billion?

Article | February 10, 2020

In the following analysis, we take a look at why Tesla (NASDAQ:TSLA) could be an attractive acquisition target for Google (NASDAQ:GOOG). We break down our analysis into three parts: what Tesla would stand to gain, what Google would stand to gain, and a scenario where Tesla’s value could rise to $1.5 trillion aided by a deal with Google.

Read More
CORE BANKING

Open Banking and Trust a key issue

Article | April 15, 2021

The pace of change within the global payment’s technology space is still at full speed with no sign of slowing down. While traditional incumbents have until recently taken comfort in their size and decades of dominance, new digital-only challenger banks are ramping up and making a huge impact on the global financial landscape.

Read More
CORE BANKING

A Guide to Banking in the Metaverse: Part 1

Article | July 13, 2022

The following article looks at Big Tech and its impact on the financial services sector. Whilst competition from small fintech startups will certainly take away some market share from traditional banks, the impact of “GAFA” could be huge. The fintech movement did more than unbundle banking and its core services — it spurred financial inclusion across Asia, increased overall economic growth, and made significant inroads into the finance value chain. The born-digital companies brought technology to the forefront, attacking the traditional risk-averse sector from various points — digital payments, insurance, P2P lending, and investment management, among other avenues.

Read More
CORE BANKING

4 Trends Powering the Digital Banking Revolution

Article | July 13, 2022

Small businesses in emerging economies are notoriously underfinanced. Despite making up over 99.5% of the economy in Latin America, SMEs face a financing gap in the trillions of dollars. For example, up to 78% of small businesses in Argentina and 45% in Peru struggle to grow because of financial constraints. Numerous articles and institutional white papers point to the lack of trust between banks and SMEs as a major cause of this financing gap. Banks simply do not know how to accurately calculate small business risk, especially in volatile economies in Latin America, so they offer high interest rates or pass on providing credit altogether.

Read More

Could Google Acquire Tesla For $250 Billion?

Article | February 10, 2020

In the following analysis, we take a look at why Tesla (NASDAQ:TSLA) could be an attractive acquisition target for Google (NASDAQ:GOOG). We break down our analysis into three parts: what Tesla would stand to gain, what Google would stand to gain, and a scenario where Tesla’s value could rise to $1.5 trillion aided by a deal with Google.

Read More
MORE ARTICLES

Spotlight

Eurex Clearing

Eurex Clearing is one of the leading central counterparties globally assuring the safety and integrity of markets while providing innovation in risk management, clearing technology and client asset protection.

Related News

CORE BANKING

Santander Further Enhances Self-Service Banking with NCR ATM as a Service

NCR Corporation | November 22, 2022

NCR Corporation (NYSE: NCR), a leading enterprise technology provider, today announced that Santander UK has expanded its long-standing partnership with NCR, selecting NCR ATM as a Service to transform, connect and run its self-service network of more than 1,700 ATMs across the United Kingdom. Santander UK, part of global Banco Santander S.A., is a commercial and retail bank serving more than 14 million customers in the region. With NCR ATM as a Service, the bank is shifting the operational management of its self-service channel, including software, transaction processing, cash management, ATM monitoring, help desk, hardware maintenance and more to NCR. “We’ve enjoyed a history of success working collaboratively with NCR, and we trust its ability to run our self-service network, Moving to NCR ATM as a Service will enable us to offer customers a better self-service banking experience, including greater ATM availability to serve them when and where they choose. It will also simplify our operations and provide a more sustainable service for the bank. We are pleased to work with a strategic partner like NCR and know it will deliver an exceptional experience for our customers and our team.” -Kirsty Lacey, COO Everyday Banking at Santander Leading organizations like Santander have recognized the significant value in outsourcing the self-service channel. By relying on a trusted partner, financial institutions can further enhance customer service and accelerate innovation, with reduced cost and complexity, With NCR ATM as a Service, Santander is transforming its business to deliver richer experiences to its customers and create a compelling competitive advantage,said Frank Hauck, president and general manager, NCR Banking. NCR helps financial institutions bridge digital and physical operations so they can connect with customers anytime, anywhere. Through innovative solutions, NCR simplifies and optimizes banking experiences for customers and staff alike. NCR provides a modern and efficient end-to-end infrastructure that integrates to the broader enterprise and fintech ecosystem to transform, connect and run self-directed banking. About NCR Corporation NCR Corporation (NYSE: NCR) is a leader in transforming, connecting and running technology platforms for self-directed banking, stores and restaurants. NCR is headquartered in Atlanta, Georgia, with 38,000 employees globally. NCR is a trademark of NCR Corporation in the United States and other countries.

Read More

FINANCIAL MANAGEMENT

TD Bank Announces Multi-Year Extension of Credit Card Partnership with Nordstrom

TD Bank | November 24, 2022

TD Bank, America's Most Convenient Bank®, today announced the extension of its credit card program agreement with Nordstrom, Inc. (NYSE: JWN). TD will continue providing exceptional card products and experiences to Nordstrom customers as the exclusive issuer of Nordstrom's U.S. Visa and private label consumer credit cards. "Our teams have built an outstanding working relationship over the past seven years, We partner with Nordstrom at every level, collaborating closely with leadership while providing tailored support for store teams. We have navigated an unprecedented retail environment together, and we are excited to continue our work driving strong customer engagement." -David Swift, Head of Credit Card Partnership Programs at TD Bank Through the Nordstrom card program, we deliver the elevated experiences that our customers have come to expect, Our cardholders enjoy more rewards, exclusive perks and early access to our highly anticipated Anniversary Sale. TD shares our dedication to meeting customers' evolving needs, and we value their partnership as we continually innovate our offerings and enhance our capabilities,said Dennis Bauer, President of Payments and Credit at Nordstrom. TD first acquired Nordstrom's credit card portfolio in 2015. About TD Bank, America's Most Convenient Bank® TD Bank, America's Most Convenient Bank, is one of the 10 largest banks in the U.S., providing over 9.8 million customers with a full range of retail, small business and commercial banking products and services at more than 1,100 convenient locations throughout the Northeast, Mid-Atlantic, Metro D.C., the Carolinas and Florida. In addition, TD Auto Finance, a division of TD Bank, N.A., offers vehicle financing and dealer commercial services. TD Bank and its subsidiaries also offer customized private banking and wealth management services through TD Wealth®. TD Bank is headquartered in Cherry Hill, N.J.TD Bank, America's Most Convenient Bank, is a member of TD Bank Group and a subsidiary of The Toronto-Dominion Bank of Toronto, Canada, a top 10 financial services company in North America. The Toronto-Dominion Bank trades on the New York and Toronto stock exchanges under the ticker symbol "TD".

Read More

CORE BANKING, FINTECH

Quaint Oak Bank Partners with Cable for Fintech Sponsorship Program

Quaint Oak Bank | November 25, 2022

Quaint Oak Bank, a Pennsylvania-based community bank, will leverage Cable’s centralized platform to enhance financial crime compliance oversight across its fintech partner portfolio, using Cable’s suite of automated and smart tools to efficiently onboard and continuously monitor its fintech partners on a single platform. “We are excited to partner with Cable to scale our fintech sponsorship program in a safe and sound manner, Our primary responsibility as a partner bank is to ensure that every fintech program complies with applicable banking and consumer protection regulations, with a heightened focus on combating money laundering, identity theft, and other financial crime related activities. Cable’s real-time integrated platform provides us the visibility and unrestricted access necessary to identify and target compliance deficiencies quickly and efficiently. Deploying Cable aligns perfectly with our enterprise-wide initiative to leverage technology for accuracy and scalability. We believe by using Cable we can onboard our partners faster, have significantly greater oversight of their financial crime controls, provide a streamlined experience for our partners, and give us greater assurance about our compliance.” -William Gonzalez, EVP of Quaint Oak Bank Cable gives partner banks such as Quaint Oak Bank and other institutions confidence in their compliance with financial crime requirements, providing a single platform for conducting tech-enabled risk assessments, automated assurance, quality assurance, management information, reporting, and more. We are honored to partner with Quaint Oak Bank to help grow its fintech partner program, Our technology will help them meet regulatory requirements and launch fintech partners faster, while implementing oversight processes that scale seamlessly as its business expands,said Natasha Vernier, Cable CEO. There is a lot of opportunity now to level up partner bank oversight of fintech partners. We’re excited to build our relationship with Quaint Oak Bank and raise the bar on what’s possible for fintech partner management together.

Read More

CORE BANKING

Santander Further Enhances Self-Service Banking with NCR ATM as a Service

NCR Corporation | November 22, 2022

NCR Corporation (NYSE: NCR), a leading enterprise technology provider, today announced that Santander UK has expanded its long-standing partnership with NCR, selecting NCR ATM as a Service to transform, connect and run its self-service network of more than 1,700 ATMs across the United Kingdom. Santander UK, part of global Banco Santander S.A., is a commercial and retail bank serving more than 14 million customers in the region. With NCR ATM as a Service, the bank is shifting the operational management of its self-service channel, including software, transaction processing, cash management, ATM monitoring, help desk, hardware maintenance and more to NCR. “We’ve enjoyed a history of success working collaboratively with NCR, and we trust its ability to run our self-service network, Moving to NCR ATM as a Service will enable us to offer customers a better self-service banking experience, including greater ATM availability to serve them when and where they choose. It will also simplify our operations and provide a more sustainable service for the bank. We are pleased to work with a strategic partner like NCR and know it will deliver an exceptional experience for our customers and our team.” -Kirsty Lacey, COO Everyday Banking at Santander Leading organizations like Santander have recognized the significant value in outsourcing the self-service channel. By relying on a trusted partner, financial institutions can further enhance customer service and accelerate innovation, with reduced cost and complexity, With NCR ATM as a Service, Santander is transforming its business to deliver richer experiences to its customers and create a compelling competitive advantage,said Frank Hauck, president and general manager, NCR Banking. NCR helps financial institutions bridge digital and physical operations so they can connect with customers anytime, anywhere. Through innovative solutions, NCR simplifies and optimizes banking experiences for customers and staff alike. NCR provides a modern and efficient end-to-end infrastructure that integrates to the broader enterprise and fintech ecosystem to transform, connect and run self-directed banking. About NCR Corporation NCR Corporation (NYSE: NCR) is a leader in transforming, connecting and running technology platforms for self-directed banking, stores and restaurants. NCR is headquartered in Atlanta, Georgia, with 38,000 employees globally. NCR is a trademark of NCR Corporation in the United States and other countries.

Read More

FINANCIAL MANAGEMENT

TD Bank Announces Multi-Year Extension of Credit Card Partnership with Nordstrom

TD Bank | November 24, 2022

TD Bank, America's Most Convenient Bank®, today announced the extension of its credit card program agreement with Nordstrom, Inc. (NYSE: JWN). TD will continue providing exceptional card products and experiences to Nordstrom customers as the exclusive issuer of Nordstrom's U.S. Visa and private label consumer credit cards. "Our teams have built an outstanding working relationship over the past seven years, We partner with Nordstrom at every level, collaborating closely with leadership while providing tailored support for store teams. We have navigated an unprecedented retail environment together, and we are excited to continue our work driving strong customer engagement." -David Swift, Head of Credit Card Partnership Programs at TD Bank Through the Nordstrom card program, we deliver the elevated experiences that our customers have come to expect, Our cardholders enjoy more rewards, exclusive perks and early access to our highly anticipated Anniversary Sale. TD shares our dedication to meeting customers' evolving needs, and we value their partnership as we continually innovate our offerings and enhance our capabilities,said Dennis Bauer, President of Payments and Credit at Nordstrom. TD first acquired Nordstrom's credit card portfolio in 2015. About TD Bank, America's Most Convenient Bank® TD Bank, America's Most Convenient Bank, is one of the 10 largest banks in the U.S., providing over 9.8 million customers with a full range of retail, small business and commercial banking products and services at more than 1,100 convenient locations throughout the Northeast, Mid-Atlantic, Metro D.C., the Carolinas and Florida. In addition, TD Auto Finance, a division of TD Bank, N.A., offers vehicle financing and dealer commercial services. TD Bank and its subsidiaries also offer customized private banking and wealth management services through TD Wealth®. TD Bank is headquartered in Cherry Hill, N.J.TD Bank, America's Most Convenient Bank, is a member of TD Bank Group and a subsidiary of The Toronto-Dominion Bank of Toronto, Canada, a top 10 financial services company in North America. The Toronto-Dominion Bank trades on the New York and Toronto stock exchanges under the ticker symbol "TD".

Read More

CORE BANKING, FINTECH

Quaint Oak Bank Partners with Cable for Fintech Sponsorship Program

Quaint Oak Bank | November 25, 2022

Quaint Oak Bank, a Pennsylvania-based community bank, will leverage Cable’s centralized platform to enhance financial crime compliance oversight across its fintech partner portfolio, using Cable’s suite of automated and smart tools to efficiently onboard and continuously monitor its fintech partners on a single platform. “We are excited to partner with Cable to scale our fintech sponsorship program in a safe and sound manner, Our primary responsibility as a partner bank is to ensure that every fintech program complies with applicable banking and consumer protection regulations, with a heightened focus on combating money laundering, identity theft, and other financial crime related activities. Cable’s real-time integrated platform provides us the visibility and unrestricted access necessary to identify and target compliance deficiencies quickly and efficiently. Deploying Cable aligns perfectly with our enterprise-wide initiative to leverage technology for accuracy and scalability. We believe by using Cable we can onboard our partners faster, have significantly greater oversight of their financial crime controls, provide a streamlined experience for our partners, and give us greater assurance about our compliance.” -William Gonzalez, EVP of Quaint Oak Bank Cable gives partner banks such as Quaint Oak Bank and other institutions confidence in their compliance with financial crime requirements, providing a single platform for conducting tech-enabled risk assessments, automated assurance, quality assurance, management information, reporting, and more. We are honored to partner with Quaint Oak Bank to help grow its fintech partner program, Our technology will help them meet regulatory requirements and launch fintech partners faster, while implementing oversight processes that scale seamlessly as its business expands,said Natasha Vernier, Cable CEO. There is a lot of opportunity now to level up partner bank oversight of fintech partners. We’re excited to build our relationship with Quaint Oak Bank and raise the bar on what’s possible for fintech partner management together.

Read More

Events