Financial services in the Metaverse: the hunt is on

Published on July 20, 2022


In what has been called Web 2.0, i.e. the Internet, financial services and banks have primarily used these technologies for employee training, to create spaces for interaction with customers or for employees, “online banking” offers as well as virtual investment advisory services. These offers and services are now quite mature and are offered by all companies. But in fact this did not fundamentally change theirs business model, which remained identical to the physical world. It’s like in an agency, but online. It’s like in a training class, but online in front of your computer.

But everything becomes different with Metaverse, which provides greater insight and can disrupt patterns more profoundly.

We can already observe the initiatives of the pioneers, especially reported in this recent report (June 2022) by McKinsey, which analyzes the current and potential impacts of the Metaverse by activity sector.

In 2022, initiatives have multiplied and can inspire others. It’s about communities and payments in the metaverse.

In March 2022, the HSBC bank announced a partnership with The Sandbox to purchase a virtual field there to create a community of eSports fans.

The Marketing Director of HSBC Asia-Pacific stated on this occasion:

“The metaverse is how people will experience Web3, the next generation of the Internet, using immersive technologies such as augmented reality, virtual reality and augmented reality. At HSBC, we see great potential to create new experiences through new platforms that open up for a world of possibilities for our current and future customers and for the communities we serve.Through our partnership with The Sandbox, we are moving into the metaverse, allowing us to create innovative brand experiences for our current and future customers. We are excited to work with our sports partners, our brand ambassadors and The Sandbox to create experiences that are educational, inclusive and accessible.”

London-based FinTech Sokin announced in February 2022 that it will launch its own metaverse community, designed to process full e-commerce transactions. Sokin’s metaverse world will host a 3D community of brands and retailers – from sports to fashion and beyond – allowing consumers to meet, communicate, shop, invest and buy in a global ecosystem and virtual economy. Consumers will shop via the mobile app peer to peer available from Sokin in the metaverse.

Sokin’s metaverse world will thus host different brands and companies that visitors can access (each room is dedicated to a brand where the visitor can access their purchases), for example a football club, an entertainment or a fashion brand .

Neobanken Zelf, which wants to be the bank of the Metaversebank, has launched a banking service for the metaverse, MetaPassavailable via Discord messages, for players (note the nice design of the site!), which notably allows buying and exchanging NFTs as simple as buying bread in a bakery (but players do they still go to bakeries?).

The TerraZero bank specializes in mortgage loans in the Metaverse, precisely to buy land there or create investment projects there.

For financial services, an expansion of the categories of customers is planned, which will no longer be limited to players or for interactions between specialized communities such as sports fans. The services offered will also be expanded.

In particular, McKinsey’s report cites:

  • Marketing: financial institutions are ready to set up branches digital in the Metaverse, to establish their brand there and establish their credibility, allowing the customer to have interactions with his bank in a hybrid way, both in the physical or digital world and in the world of the metaverse;
  • Infrastructure: this corresponds to digital identity services, digital payments, holding NFTs, cryptocurrencies or other digital assets;
  • New products and services associated with Metaverse: for example, cyber insurance.

However, the more applications and customers will develop, the more new services will appear, corresponding to as many opportunities for financial services:

  • Services for owners of wallets in the metaverse, such as multi-cash management,
  • Mortgage loans and project financing schemes for the metaverse,
  • consumer credit services,
  • Loyalty programs, deferred payment,
  • The financing of everything, as more and more digital assets are created and have utility in the context of a metaverse, such as being used as collateral for loans.

Of course, the increase in these services will depend on the increase in applications and the adoption of the metaverse by consumers of all kinds. And banks and financial services may decide not to take too much interest in it at the moment. But when the time comes, they must also be equipped with the talents and skills necessary to develop there and take an interesting place. It is worth anticipating a little in the personnel departments.

Because here again, what will block it will not be the technology, but the human ability to adapt to it.

Enough to promote the birth of new start-ups and unicorns in the financial services market.

The hunt is on in the metaverse.

On the Internet

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