Banks can't afford to roll their eyes at the Metaverse

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As virtual assets are already traded and sold in the metaverse, there is an inevitable demand for financial services, especially banking services, to ensure secure payments, investments, and transactions for all customers. We take physical and online banking security measures for granted, but how do these regulations and safeguards translate into a virtual world?

Fortunately, banks have a long history of fighting fraud in real and online markets. Forward-thinking banks are also already thinking about the metaverse, as they seek to capitalize on the untapped potential that an immersive, memorable and personalized customer experience offers. Pilot programs are already underway for connected experiences in areas such as 3D banking and personalized virtual banking. Innovative payment platforms and decentralized autonomous organizations (DAOs) will also make their way to the metaverse, creating a safe and engaging banking experience for the next generation of customers.

At first glance, the bank and the metaverse may seem like unlikely allies. After all, banking is a conservative and heavily regulated industry. Yet in some ways, banking is a clear participant in the metaverse, as the backbone of safe and secure virtual transactions, enabling other industries to thrive. Providing financial services via Web3, the decentralized internet owned by communities of users and coordinated through mechanisms such as tokens and non-fungible tokens (NFTs), is a natural way to meet the demands of young consumers hungry for interactive experiences.

Consider that millennials, who led the way in disrupting personal finances through mobile banking, now have greater awareness of the metaverse than their younger counterparts. They take their money seriously - 75% say they work with a professional financial advisor - and Gen Z isn't far behind. Among 18-24 year olds, 70% check their finances daily. They are likely to follow "end-fluencers" on platforms such as Discord, Reddit and Instagram. Additionally, 41% percent asked for financial advice on TikTok. (Yes, "FinTok" is real.)

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But it's the next generation of customers that banks need to prepare for. Generation Alpha is the newest member of the family unit, the children of Generation Y and the siblings of Generation Z. The oldest members of Generation Alpha were born in 2010 - the same year as Generation Alpha. 'iPad - and they are the first generation born entirely in the 21st century. For children under 12, all banking may take place in virtual worlds.

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