Metaverse is currently considered a platform for gaming, media, and the entertainment industry. But in the near future metaverse will use in all of the day-to-day life aspects. You will use the metaverse in fiat to crypto transforming ATM to pay daily needs in this platform.

Currently, only 30 million virtual reality Headsets are used, and most popular Metaverse games like Fortnite, Minecraft, and Roblox had crossed 1 billion subscriptions. But this number will definitely increase in the exponential mode now and future.

The current market value of the metaverse is $1 trillion, and It is projected that the total market value of the metaverse will be $7 trillion to $13 trillion by 2030. As fintech practitioners, we will try to find the scope of banks and fintech firms doing business over the metaverse platform.

We will cover the below areas with this article.

1. Bank and fintech opportunity in the metaverse.
2. Use case of a metaverse in the fintech industry.
3. Expectation from the metaverse.
4. Creative economy and metaverse.
5. Defi and metaverse competition.
6. Challenges of Metaverse in the fintech field.

Bank and fintech opportunity in metaverse:

In a recent study by JP Morgan, Metaverse creates $1 trillion in business opportunities yearly.  In another study by Zion Market Research, the Metaverse market size increased 1.4X year-on-year basis, and the total market size in 2028 will be $400 billion in 2028. Big tech firms and top-level fintech firms already invest tons of billion to get a major share worth $12 trillion in 2030.

Use case of Metaverse in the fintech industry:

1. Give client verification by not going bank branch.
2. Transfer live money one to one.
3. Creating a virtual bank branch at the lowest possible cost.
4. Educating and training clients and employee
5. Creating a virtual brand experience.
6. Bank and fintech firm can even sell their product with metaverse.

Expectations from metaverse:

Banks and the fintech industry are cutting down costs every day to coup up with the competition. Metaverse comes with the lowest possible cost of banking. Customers do not need to go bank branches and banks don’t need to open bank branches to serve clients.

More than 80% of Bank’s CEOs and top management believe Metaverse will keep a significant impact on their business in the near future.

With metaverse and web 3.0 banks and financial organizations will serve a lot of new services from arts, games, media, healthcare, insurance, and commerce.

Metaverse will be available on mobile, tab, laptops, desktops, gaming consoles, AR, and VR devices. We are waiting to enjoy all the banking activities with metaverse.

Creative economy and metaverse:

We see a raise in NFT in recent days.  All big firms including Adidas, Nike, Microsoft, and Apple all enter into space to create and store nft. NFT is a good example of the creative economy. All big brands are focused on creative assets and creative branding. Metaverse will open those scopes to a new extent.  

Major fintech industry players are planning or buying the platform of the metaverse. Two major fintech metaverse platforms are Sandbox and Decentraland. JP Morgan, CaixaBanks, and Fidelity Investment are buying their plot in Decentraland. HSBC and Standard Chartered are entering into Sandbox.

Defi and metaverse competition:

Some of you might disrupt in fintech, crypto, Defi, CBDC, Blockchain, and the metaverse. Though those are interrelated they have different fields of applications. Metaverse is a part of Defi, metaverse covers AI, AR, and VR which may apply in all parts of our life. But Defi works in financial decentralization. There are tons of defi projects like a metaverse. More than 20k cryptocurrency working as a defi project. There is competition between them rather they depend on one another.

Challenges of Metaverse in fintech industry:

Yes, the metaverse is not the panacea to the fintech industry. It opens many doors but solves all the problems of the current financial industry. It borns with some challenges too;

1. Hardware.
2. Need a huge investment.
3. Shortage of efficient manpower.
4. No central control of the monetary system.
5. Customer acquisition costs will be higher.
6. It will disrupt the current financial system
7. Disruption in human psychology.

Those are the first-generation challenges of Metaverse over time this list will widen.

In the end;

metaverse is real, we don’t suggest billions of investments overnight. We suggest trying to build a basic understanding among bankers and fintech practitioners. After building capacity occupy some room in the metaverse. Make sure your presence is in the metaverse. Then you can offer it to your customer and potential customer.  As a first mover, many top industry players already signed their land on this field. In the wave of virtualization, you must be fit for this journey.

You can build your basic idea of How bank will lead metaverse with fintech from below:

1. https://www.youtube.com/watch?v=QunH5EvmPhg
2. https://www.youtube.com/watch?v=-U3ZmJ8qUSM
3. https://www.youtube.com/watch?v=JPGNvKy6DTA
4. https://www.youtube.com/watch?v=RUJtvbE-Suc