Source: Financial Express, 18 July 2022
FINANCE Metaverse unfolds a new dimension, a new universe – a space where our real world, augmented reality, and virtual reality intersect, seeding an immersive and collaborative shared virtual 3D environment. In the metaverse-sphere, cryptocurrency and digital art, namely non-fungible tokens, are commonplace. While technocrats, gaming platforms and social media fans are busy talking about the extraordinary experience one will witness in the metaverse, people are looking at alternative digital possibilities and eager to find new pathways to seamless financial transactions.
Sighting the near future, Metaverse has not only become the new favourite of large technology companies, but also the new favourite of the investment industry.
Digitally acquired fintech solutions are revolutionising how transactions are carried out in real life. With cashless transactions witnessing an upswing, these will form the basis of financial transactions carried out in the metaverse – forming the backbone of the huge economic metaverse ecosystem.
Metaverse is expected to become an important digital platform for personal and business interaction. In fact, financial data management and financial transaction management that match real life scenarios provided by financial technology solutions will contribute to the meta-universe, making the meta-universe as indispensable as a real life situation.
To make this new environment as immersive and realistic as possible, the ability to manage finances and transactions intricacies will be critical. The pandemic encouraged people to interact and pay digitally more than ever before. As a result, fintech adoption boomed worldwide.
Based on the current blockchain technology, cryptocurrencies exercise better security, seamless transactions, reduce settlement processes and provide efficient transactions, establishing cryptocurrencies as the official payment method in the metaverse and eliminating the use of the various currencies to carry out financial transactions entirely. However, each cryptocurrency performance will have to be gauged in the metaverse towards becoming the preferred standardised choice for carrying out transactions.
Following a similar pattern to digital wallets, the only difference is that metaverse wallets will help store cryptocurrencies. The wallet can be used for carrying out financial transactions one does in real life. For example, the metaverse wallets can be used to buy and sell products, like NFTs or virtual real-estate, on the metaverse platform. Similarly, it can also be used for receiving or transferring tokens between users within the metaverse.
Helping customers analyse real-world financial decisions in the virtual world by recreating those scenarios in the metaverse by using ‘gamification’ can boost financial literacy while eliminating the risks with real, hard-earned money. Inculcating the concept of gamification, financial institutions can leverage financial literacy among individuals. With the quest to attract yet retain its consumer base, fintech services create applications targeting the younger generation to better grasp various financial concepts like budgeting, taxation, investing, stock trading and even buying properties.
Virtual employee onboarding and training
With the pandemic leading to the adoption of remote work, the real scope of interaction and socialising between employees has become limited to a screen. Owing to enhancing the user experience of financial service professionals, these institutions can create a virtual office in the metaverse where the employees and; digital avatars can work in a simulated real-world environment. Employees can talk, interact, and hang out with each other in the metaverse, quite like the real-world paradigm. Additionally, metaverse accommodates virtual meetings for new employees.
Onboarding and carrying out associated activities like training them.
While the metaverse fintech ecosystem is a universe one might just be equipped for, financial institutions will have to make smart investments in the digital economic ecosystem of the metaverse if they want to succeed on the platform and be future-ready. Be it visiting a virtual mall and; expenditures, attending an event/conference or comprehending basic finance through gamification, metaverse could add a robust dimension to the world of finance.
The author is CEO, and Director, Tarality