Banks Have Come to the Metaverse
It may not be the buzzword it once was among the tech set, but the metaverse has begun to get attention from financial institutions. With a user base and audience that are young, tech-savvy and in the early stages of their financial lives, metaverse applications offer banks unique opportunities to build relationships with a digitally native and growing consumer base that has long embraced fintech. Its also important for banks to be able to tap into this pool of talent for future hiring.
The metaverse can be broadly defined as a blockchain-fueled, all-encompassing virtual world that offers new human and socio-cultural experiences. It epitomizes decentralized and immersive social experiences that often involve virtual reality (VR) and augmented reality (AR), opening up an entirely new set of opportunities for social interaction. No single company or application defines the metaverse, and users can use a single, portable identity among metaverse apps.
Banking on the metaverse
Leading institutions in TradFi from different parts of the world have begun to set up shop in the metaverse. JPMorgan arrived in Decentraland under the brand Onyx, which, according to the company, is a blockchain-based platform for wholesale payment transactions. In March last year, HSBC announced the purchase of land on The Sandbox to engage with clients and offer them novel experiences through emerging platforms.