Banking in the Metaverse

If you’ve read our earlier blogs, you’ll know by now what the Metaverse is, what life is like in it and how you can earn a living there.

Today, we’re looking at yet another aspect of Metaverse life – banking. So, how does it work?

Metaverse banking

The term “Metaverse banking” is a relatively new one used to describe the management of financial transactions in virtual environments. Can’t be bothered to traipse down to the bank? With Metaverse banking, you don’t have to. Using virtual reality (VR), you can teleport to any bank in the world from the comfort of your own sofa.

Many banks are keen to adopt the technology in the hopes of connecting with their customers more easily. And with 47% of bankers believing that customers will use VR or augmented reality (AR) for financial transactions by 2030, it’s safe to say the shift is underway. But which companies are getting in on the action already?

The main players

America’s biggest bank, JPMorgan, announced its arrival in the Metaverse earlier this year, acquiring a piece of virtual property in Decentraland. The bank also released a report called Opportunities in the Metaverse, which explained that, “In time, the virtual real estate market could start seeing services much like in the physical world, including credit, mortgages and rental agreements.”

In South Korea, both Shinhan Bank and KB Kookmin Bank have launched virtual branches, so that customers can access financial services via avatars.

Where do NFTs come in?

NFTs might currently seem more like a gimmick than something that can offer real-world value - but that could be about to change. Take the EQIFi NFT card. The first DeFi protocol powered by a licensed and regulated bank, EQIFi, recently created an NFT card that can be used in the Metaverse. It also allows users to apply for a free bank account with EQIBank, which provides real-world value in the Metaverse.

The future

So, what does the future hold for Metaverse banking? If JPMorgan’s predictions are correct, the Metaverse will infiltrate every sector in the coming years and become an all-encompassing trillion-dollar market. When you look at it like that, Metaverse mortgages and virtual bank branches don’t seem too far off at all.

We want to know - would you use virtual banking services in the Metaverse?

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