The Future of Finance and the Metaverse
The Metaverse has been gaining some serious attention in the last few months. Whilst its origins rest within the world of social media and gaming, the Metaverse has touched a broad range of industry sectors and has surpassed beyond the realms of entertainment and into traditional sectors such as finance and retail.
When Meta announced its creation, businesses globally began to piece together exactly how it could work for them. It is clear that the Metaverse is still within its infancy. However the potential for the Metaverse space to ripen and mature is extensive.
Like many other industries, the metaverse is exciting for the Fintech space as financial innovators grasp how to understand and learn to make new solutions that could potentially provide a new wave of financial services to the world. Vorto’s Bobby Ward explores the opportunities of the metaverse within the financial market and any future trends we could expect to come to fruition.
Changes in consumer payments:
We have already seen different examples of practical applications of Metaverse technology within the AR (Augmented Reality) and VR (Virtual Reality) space. Examples include Nike building its metaverse inside of ‘Roblox’ and Samsung’s metaverse pop-up in New York called Samsung 837X, where customers can purchase NFT badges and wearables. These metaverse environments are impressive because customers are able to connect with a brain whilst surpassing the geographical restraints of having to physically be somewhere. However, what is perhaps most impressive is that these experiences rely on Fintech to make the exchange of money between a user and company happen. These virtual metaverse environments not only are changing the future of retail and the way people shop but are also changing the way that people make payments.
NFTs to become mainstream
The metaverse presents many opportunities for the cryptocurrency space and notability through non-fungible tokens (NFTs). Brands and art galleries across the world have been grappling with digital art and how to make the most of the NFT space. Whilst Christie’s sold Beeple, HUMAN ONE (2021), for $29 million last year, it is important to notice that mainstream brands such as McDonald’s, Coca-Cola, and Asics have all begun to start selling NFTs. NFTs are not just for the HNWIs, they will enter mainstream consumerism as commodities that can be sold for varying price points.
A new way to work
Metaverse technology is disrupting the world of work. During the pandemic, many financial firms were forced to embrace remote working conditions. Thanks to VR and AR, entire teams and departments have been able to work together efficiently through the use of virtual chats, screen-shares, and other technologies. The metaverse however could take this to a next level through reimagining the workspace so that financial firms can create an engaging environment to carry out day-to-day business between colleagues and clients alike.
It really is only just the beginning for the metaverse and fintech. Whilst the metaverse is in its early days, it is clear that it is an opportunity that will flourish in the future. The Fintech space will be a key driver for the metaverse’s growth as it penetrates a broad sector of B2C and B2B businesses. As we progress throughout 2022, it will be an exciting time for the financial services industry.