ARE YOU A TECH-SAVVY, HIGH-TECH BANK?
Those banks and financial institutions that invest in modern technology stand apart from those that do not.
It is in the interests of banks and financial services companies to portray themselves as tech-savvy, forward-looking, high-tech companies.
In an era where new technologies like artificial intelligence (AI), automation, virtual reality (VR), and the Internet of Things (IoT) are revolutionizing so many aspects of our lives, banks must ensure that they are seen as innovative.
Since Distributed Ledger Technologies ( DLT ) have the potential to disrupt, disintermediate, and disrupt even the most established technology systems, financial institutions must ensure they are considering all of their efficiencies.
Consumers will enjoy seamless service from banks that deliver on this promise.
As technology continues to evolve, banks are looking for new and innovative ways to connect with their customers. Metaverse is becoming a new platform for customer engagement and financial innovation as banks explore this new digital world.
What if customers could visit a bank branch without leaving home? Wouldn't it be great and convenient? It's now possible!
Virtual branches are now being experimented with by many banks in the Metaverse. In virtual branches, customers can interact with bank representatives like they would in a physical branch, but in a digital environment.
38% of bank customers are willing to use a virtual branch if it is available, according to a recent survey.
When it comes to banks' experiments in the Metaverse, virtual branches are only the tip of the iceberg. Efforts are being made by banks to improve their customer experience and financial services by leveraging new technologies, such as the creation of digital currencies and the use of virtual reality technology.
As banks embrace the potential of the Metaverse, they can establish themselves as leaders in the industry and provide unique and engaging ways for their customers to interact with them.
SELF SOVEREIGN IDENTITY
Self-Sovereign Identity (SSI) will be the most important aspect of digital identity management in the world of Web 3.0. As more brands embrace the internet business models of the future, Banks will have a very important role to play in being the platforms that host the digital identities of individuals and corporations who will control their own information.
With Zero Knowledge Proof being an important feature of the way SSI is managed, Banks have the potential to become the trusted source for digital identity verification on the blockchain when it comes to financial credentials of individuals and corporations.
NFT BANKING
Banks embrace Web 3.0 by experimenting with a new business model - NFT Banking.
Using blockchain technology, NFT banking is the next generation of banking. To perform transactions, digital assets are created in the form of NFTs. There is no central authority controlling these transactions. This allows users to transfer money between accounts without using intermediaries.
Using NFT tokens in NFT Banking, virtual and physical goods can be exchanged or bought in a marketplace. Additionally, tokenizing financial details associated with an asset alleviates the difficulties associated with traditional cross-border transactions.
In contrast to typical banking systems, NFT banking processes transactions very quickly without the need for any human labor. NFT is a safe and simple method of transferring funds, and that too within seconds. Decentralized blockchain technology makes it possible for users around the world to access the same data from any location. Through the integration of smart contracts, the token assets and the users' funds will always be protected from external security attack.
VIRTUAL ATMs
Virtual ATMs in the Metaverse are an interesting development in the world of banking. The ability to convert fiat into crypto and vice versa creates a whole new avenue to explore for banks on Web 3.0 rails.
Banks can now cater to the requirements of the next generation of internet users who are comfortable with the digital world and its transactions.
Liveplex Web 3.0 API stack comes with proprietary MTE (Micro-Token Exchange) technology that enables on and off-chain security for transactions making Banking FIPS 140-3 compliant.
CROSS BORDER TRANSACTIONS
According to the IDC Worldwide Blockchain Spending Guide, Cross-border payments accounted for 15.9% of the $4.67-billion blockchain market in 2021. With the expected growth of the global blockchain market from $7.18 billion in 2022 to $163.83 billion by 2029, the segment of blockchain-based cross-border payments is anticipated to show a corresponding increase.
Juniper Research estimates that B2B cross-border payments on blockchain will account for 11% of the total B2B international payments by 2024.
By storing customer data on decentralized blocks, blockchain technology can eliminate redundant efforts and make it easier and safer to share information between financial institutions in real-time.
The use of Liveplex Web 3.0 APIs can reduce the number of intermediaries involved, increase transparency, reduce the risk of fraud, make payments faster and more efficient, and increase financial inclusion.
GAMIFICATION OF BANKING
More than 3 billion people in the world play video games, according to Statista, and this trend has led to the growing popularity of gamification business models in banking. Gamification is forecasted to increase at a compound annual growth rate of 26.5% through 2027, and companies that adopt it see up to a 700% increase in conversion rates.
The metaverse is being used by several banks in an effort to engage younger generations and gain a better understanding of virtual worlds. By using the metaverse, banks hope to attract new customers and develop new products and business models.
A fun and engaging way to teach financial literacy to customers would be to gamify financial services in the Metaverse. Digital technology and gaming may be more appealing to younger generations.
Gamification comes in a variety of forms. It can be as simple as celebrating actions such as opening a new account, giving points and levels to users, or even providing real-world cash and prizes. Banks can create quizzes and countdowns, power-ups, options to team up or compete, and more.
The aim of banks introducing gamification is to create a memorable experience for their customers. While doing that, Banks will create a virtual economy on their platforms to sustain the interest of their customers.
Gamification can make mundane chores like saving money fun or even be a strategy for customer retention and loyalty.
With new generations of customers well-versed in digital quests, digital currency, and digital lives, the next generation of digital banking could create virtual economies for these digital natives that correspond to their physical economies.
METANOMICS
Every year, $54 billion is spent on virtual goods. The economics of the Metaverse or metanomics is full of opportunities.
In the metaverse, Web 3.0 enables the ownership economy. If you want to personalize a virtual home, you can purchase an original piece of art, tokenized as a digital asset. You can even own the land the house is built on. Partly, this growth has been because brands have been buying up space so they can create virtual stores and other experiences.
The virtual real estate market will need services like in the physical world, including credit, mortgages, and rental agreements. However, with the emergence of decentralized finance (DeFi), collateralized lending primitives, and the composability of blockchain token-based digital assets, a next-generation financing company could potentially leverage digital clothing as collateral to underwrite virtual land and property mortgages.
In fact, the financing company need not be a company at all, but instead, a self-organizing, mission-based community of people (who may not have met at all in person), also known as a decentralized autonomous organization (DAO). The DAO can seed its original balance sheet into a multi-signature wallet to create the mortgages. An additional layer of tokenomics is used to incentivize certain participant or community behaviors, creating another level of gamification and commercialization.
Supply and demand dynamics drive more people into the meta-economy. This, in turn, necessitates the development of new skills and generates new opportunities to make money.
VIRTUAL BANK LOBBIES
Banks can use the metaverse to create "virtual branches", where they can sell banking products to a new breed of digitally-native consumers in Generation Z, or provide existing customers with customer service.
Virtual Lobbies provide the same experience to the consumers that they would get had they visited a branch in person. However, there is a huge difference. Virtual Interactions between the customer and the Bank in the Metaverse are highly personalized and tailored to meet the information and transactional needs of the customer as he desires.
With the use of artificial intelligence and machine learning, virtual banking staff is able to customize the customer's experience with the bank.
Web 3.0 provides banks with the opportunity to provide customized, secure, and efficient services digitally.
Will it help any bank not to be technologically progressive?
To create your Web 3 and Metaverse strategy, talk to us at hello@liveplex.io
It is in the interests of banks and financial services companies to portray themselves as tech-savvy, forward-looking, high-tech companies.
In an era where new technologies like artificial intelligence (AI), automation, virtual reality (VR), and the Internet of Things (IoT) are revolutionizing so many aspects of our lives, banks must ensure that they are seen as innovative.
Since Distributed Ledger Technologies ( DLT ) have the potential to disrupt, disintermediate, and disrupt even the most established technology systems, financial institutions must ensure they are considering all of their efficiencies.
Consumers will enjoy seamless service from banks that deliver on this promise.
As technology continues to evolve, banks are looking for new and innovative ways to connect with their customers. Metaverse is becoming a new platform for customer engagement and financial innovation as banks explore this new digital world.
What if customers could visit a bank branch without leaving home? Wouldn't it be great and convenient? It's now possible!
Virtual branches are now being experimented with by many banks in the Metaverse. In virtual branches, customers can interact with bank representatives like they would in a physical branch, but in a digital environment.
38% of bank customers are willing to use a virtual branch if it is available, according to a recent survey.
When it comes to banks' experiments in the Metaverse, virtual branches are only the tip of the iceberg. Efforts are being made by banks to improve their customer experience and financial services by leveraging new technologies, such as the creation of digital currencies and the use of virtual reality technology.
As banks embrace the potential of the Metaverse, they can establish themselves as leaders in the industry and provide unique and engaging ways for their customers to interact with them.
SELF SOVEREIGN IDENTITY
Self-Sovereign Identity (SSI) will be the most important aspect of digital identity management in the world of Web 3.0. As more brands embrace the internet business models of the future, Banks will have a very important role to play in being the platforms that host the digital identities of individuals and corporations who will control their own information.
With Zero Knowledge Proof being an important feature of the way SSI is managed, Banks have the potential to become the trusted source for digital identity verification on the blockchain when it comes to financial credentials of individuals and corporations.
NFT BANKING
Banks embrace Web 3.0 by experimenting with a new business model - NFT Banking.
Using blockchain technology, NFT banking is the next generation of banking. To perform transactions, digital assets are created in the form of NFTs. There is no central authority controlling these transactions. This allows users to transfer money between accounts without using intermediaries.
Using NFT tokens in NFT Banking, virtual and physical goods can be exchanged or bought in a marketplace. Additionally, tokenizing financial details associated with an asset alleviates the difficulties associated with traditional cross-border transactions.
In contrast to typical banking systems, NFT banking processes transactions very quickly without the need for any human labor. NFT is a safe and simple method of transferring funds, and that too within seconds. Decentralized blockchain technology makes it possible for users around the world to access the same data from any location. Through the integration of smart contracts, the token assets and the users' funds will always be protected from external security attack.
VIRTUAL ATMs
Virtual ATMs in the Metaverse are an interesting development in the world of banking. The ability to convert fiat into crypto and vice versa creates a whole new avenue to explore for banks on Web 3.0 rails.
Banks can now cater to the requirements of the next generation of internet users who are comfortable with the digital world and its transactions.
Liveplex Web 3.0 API stack comes with proprietary MTE (Micro-Token Exchange) technology that enables on and off-chain security for transactions making Banking FIPS 140-3 compliant.
CROSS BORDER TRANSACTIONS
According to the IDC Worldwide Blockchain Spending Guide, Cross-border payments accounted for 15.9% of the $4.67-billion blockchain market in 2021. With the expected growth of the global blockchain market from $7.18 billion in 2022 to $163.83 billion by 2029, the segment of blockchain-based cross-border payments is anticipated to show a corresponding increase.
Juniper Research estimates that B2B cross-border payments on blockchain will account for 11% of the total B2B international payments by 2024.
By storing customer data on decentralized blocks, blockchain technology can eliminate redundant efforts and make it easier and safer to share information between financial institutions in real-time.
The use of Liveplex Web 3.0 APIs can reduce the number of intermediaries involved, increase transparency, reduce the risk of fraud, make payments faster and more efficient, and increase financial inclusion.
GAMIFICATION OF BANKING
More than 3 billion people in the world play video games, according to Statista, and this trend has led to the growing popularity of gamification business models in banking. Gamification is forecasted to increase at a compound annual growth rate of 26.5% through 2027, and companies that adopt it see up to a 700% increase in conversion rates.
The metaverse is being used by several banks in an effort to engage younger generations and gain a better understanding of virtual worlds. By using the metaverse, banks hope to attract new customers and develop new products and business models.
A fun and engaging way to teach financial literacy to customers would be to gamify financial services in the Metaverse. Digital technology and gaming may be more appealing to younger generations.
Gamification comes in a variety of forms. It can be as simple as celebrating actions such as opening a new account, giving points and levels to users, or even providing real-world cash and prizes. Banks can create quizzes and countdowns, power-ups, options to team up or compete, and more.
The aim of banks introducing gamification is to create a memorable experience for their customers. While doing that, Banks will create a virtual economy on their platforms to sustain the interest of their customers.
Gamification can make mundane chores like saving money fun or even be a strategy for customer retention and loyalty.
With new generations of customers well-versed in digital quests, digital currency, and digital lives, the next generation of digital banking could create virtual economies for these digital natives that correspond to their physical economies.
METANOMICS
Every year, $54 billion is spent on virtual goods. The economics of the Metaverse or metanomics is full of opportunities.
In the metaverse, Web 3.0 enables the ownership economy. If you want to personalize a virtual home, you can purchase an original piece of art, tokenized as a digital asset. You can even own the land the house is built on. Partly, this growth has been because brands have been buying up space so they can create virtual stores and other experiences.
The virtual real estate market will need services like in the physical world, including credit, mortgages, and rental agreements. However, with the emergence of decentralized finance (DeFi), collateralized lending primitives, and the composability of blockchain token-based digital assets, a next-generation financing company could potentially leverage digital clothing as collateral to underwrite virtual land and property mortgages.
In fact, the financing company need not be a company at all, but instead, a self-organizing, mission-based community of people (who may not have met at all in person), also known as a decentralized autonomous organization (DAO). The DAO can seed its original balance sheet into a multi-signature wallet to create the mortgages. An additional layer of tokenomics is used to incentivize certain participant or community behaviors, creating another level of gamification and commercialization.
Supply and demand dynamics drive more people into the meta-economy. This, in turn, necessitates the development of new skills and generates new opportunities to make money.
VIRTUAL BANK LOBBIES
Banks can use the metaverse to create "virtual branches", where they can sell banking products to a new breed of digitally-native consumers in Generation Z, or provide existing customers with customer service.
Virtual Lobbies provide the same experience to the consumers that they would get had they visited a branch in person. However, there is a huge difference. Virtual Interactions between the customer and the Bank in the Metaverse are highly personalized and tailored to meet the information and transactional needs of the customer as he desires.
With the use of artificial intelligence and machine learning, virtual banking staff is able to customize the customer's experience with the bank.
Web 3.0 provides banks with the opportunity to provide customized, secure, and efficient services digitally.
Will it help any bank not to be technologically progressive?
To create your Web 3 and Metaverse strategy, talk to us at hello@liveplex.io