Metaverse can change the way we bank today. There could be virtual branches providing immersive experience. There could be virtual interactions with financial advisers.

Metaverse is a package of different technologies – AI, 5G, Blockchain, NFT, Web 3, AR/VR, spatial computing. The immersive component is provided by the AR/VR hardware.

The customer engagement in metaverse differs from that practised in physical branches. The customers interact with banking representatives and conduct transactions in virtual settings. Banks offer chatbots and intelligent avatars. These facilitate the fund deployment. Metaverse can be used for virtual trading and management of assets such as NFTs, DeFi, real estate or art.

Banks can streamline the processes through metaverse. There could be orientation and training of the employees in metaverse skills.

Metaverse regulation has yet to develop. In a field like banking, this is a damp squib. Besides, metaverse is a complex technology. It is difficult to implement. There are security risks too.

Union Bank of India (UBI) is the first traditional bank to explore the metaverse. It is called Uni-verse. The customers enter it by log in with their phones. It is a web-based interface. Customers can access information on products and services.

A Mumbai-based Fintech company has also launched Kiyaverse, a virtual interaction platforms for banks and NBFCs.

There are high barriers to entry, as it requires capital commitment, and deployment of manpower. Banks will move to metaverse slowly.