Virtual Reality Fintech

The advent of AR and VR has drastically transformed industries like healthcare, real estate, and even finance. This field of application has been expanding at quite an impressive rate. In fact, it has been predicted that by the end of 2020, the market for AR and VR solutions will reach $150 billion, and on the other hand, AR will beat VR by $120 billion.

AR and VR have immensely transformed the fintech industry by providing solutions to the finance industry’s most evident challenge – improving customer service. The majority of young people aged 25 to 35 find the style of banks slow, frustrating, and hard to comprehend. That’s why millennials don’t like to go to banks. Studies have shown that 71% of millennials stated that they would rather go to a dentist than listen to what banks have to say.

The use of AR and VR in fintech also offers opportunities for a virtual bank along with many other aspects of financial services.

8 effective ways AR and VR are transforming fintech

1. Data Visualization

Visualizing data helps traders to make important decisions about wealth management, as the financial industry becomes complex with a lot of data. AR and VR add to this experience, thereby making it easier to visualize and organize large amounts of data. A great example of this is Fidelity labs, which is a part of Fidelity investments. They have created a virtual ‘Stock city’ where all the stock portfolios are converted into the virtual 3D city, and investors can immerse themselves in the data.

2. Virtual Trading

Some companies are transforming trading into a virtual experience by creating virtual reality workstations for trading. For example, Citi uses Microsoft HoloLens to give traders a Holographic workstation. This essentially is a 2D or 3D workstation with elements that add to the bank’s existing processes. This also helps give users better access to algorithms and trading tools.

3. Virtual Reality Payments

Many businesses are now moving towards making payments a virtual experience. Great execution of this is by MasterCard, who have partnered with Wearality. They have created a world wherein customers can make purchases without leaving the virtual world. They also have a golf experience called ‘Priceless’ wherein players can buy clothing in the virtual world.

4. Security

One of the most important aspects of fintech is security. And to create a more secure customer experience, biometric security can be introduced in the AR system that connects to the VR world. These solutions can be used to make ATM transactions, access VR bank services, and even make payments.

5. Financial Education

For employees and customers in the finance industry education is important to understand the changes in the systems. AR and VR have a great potential for teaching people new information in VR finance.

6. Customer Services

Many banks today have AR apps that help customers find the nearest branches and ATMs. They can easily scan the area with their phones and see real-time information about location, services, and distances of nearby banks.

7. Virtual Branches

Currently, there has been a rise in digital banks. But there is a strong prediction that with AR and VR; people will be able to visit virtual banks. So, people don’t always have the need to visit a physical branch. Not only is this useful to customers, but it additionally reduces costs for banks. And rightly so, as they no longer need to invest in physical locations.

8. Recruitment and Training

Providing high-quality services to customers requires financial institutions to ensure that they are recruiting top talent and training all employees with the best skills. Some banks are using VR experiences so that potential and current employees use the platform to create teams and apps that will eventually help customers.

The road ahead

As technology continuously evolves, such adjacent realities become mainstream. Financial industries, therefore, need to keep up to attract customers as well as employees. The advent of AR and VR solutions have impacted the way financial institutions interact with data, customers and provide services. Companies should now consider partnering with reliable VR, and AR outsourcing provides if they want to stay ahead in the game.

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