There has been the invention and evolution of technology to thank for some of humanity’s most important advances. The invention of the airplane in 1903, the computer in 1937, and the Internet in 1974 completely changed our daily lives. As technology advances, how can Web3, Metaverse, Blockchain, DeFi, etc. change the future of Fintech?
Over the past few years, the Metaverse has been surrounded by a lot of hype, but we still don’t know exactly how the Metaverse will affect people’s lives and different industries.
To understand how the metaverse can specifically integrate different sectors of the fintech industry, Fintech Times We asked a number of industry experts for their opinions and perspectives.
“Interoperability is key”
julia street CEO of an international fintech business development, marketing and communications consultancy. street consultingStreets discusses what the term “metaverse” really encompasses and how fintechs can take advantage of it.
“For a clear definition of the metaverse, Responsible Metaverse Alliance, a social enterprise and international movement supporting the responsible development of the Metaverse. The Metaverse is a structure of multiple virtual worlds brought together to enable social connections in a 3D virtual universe that resembles reality.
“A set of immersive technologies (virtual reality, augmented reality, mixed reality) and haptics, AI, ML, videoconferencing, gaming, blockchain, cryptocurrency, cloud email, social media and live streaming.
“Fintech can create amazing experiences by combining elements drawn from across industries. collect rent, bring value into the real world, pay for Metaverse educational programs and other services that are only 5 to 10 years away from this mainstream way of life and work. Instead, some believe that interoperability is key.”
“A new asset class that can rise”
Alvin KangBlockchain Network Growth Director BNB chaindescribes the impact of the metaverse on financial services:
“The Metaverse is a new technology that has the potential to revolutionize fintech services and create an integrated platform that offers users a seamless and immersive experience. It offers a new asset class that can add value in the same way as private real estate.
A virtual world like Decentraland and somnium space develops a platform that allows users to buy virtual land and build on it, and virtual properties have already sold for millions of dollars.
“A metaverse platform that second life Having its own virtual currency, users can buy and sell goods and services within the platform. Additionally, the Metaverse has a growing number of his DeFi platforms, including: Avegotch and sandboxwhich allows players to stake virtual assets to earn tokens and enable peer-to-peer transactions.
Additionally, the Metaverse provides users with secure, verifiable digital identities that can be used to authenticate transactions and access financial services. Some players are already developing digital identity solutions in the metaverse, including: block pass and self key.
Finally, the Metaverse provides a more immersive and interactive environment for buying, selling, and trading game assets.platforms like engine It allows the creation and trading of virtual assets that can be used in games and other virtual environments. With all these opportunities and possibilities, the Metaverse also has the potential to change the way we think and interact with fintech services. ”
“Fintech can bridge traditional financial services and the metaverse.”
Kamares Lardi CEO of Digital Business Transformation Partners. Raldi & Partner Consulting author with The Human Side of Digital Business TransformationShe commented on how the Metaverse could “bring together” different sectors of the fintech industry.
“The Metaverse can bring together previously disparate segments of the fintech industry by providing a unified platform for collaboration and innovation. Not only do they play a key role in keeping customers alive, they are also creating new revenue streams and business expansion potential, such as cross-selling insurance policies, investing in cryptocurrencies, and investing in NFTs.
“Fintech companies that are leading the way in cross-border payments are leveraging digital currencies and secure blockchain technology, including cross-border payments, peer-to-peer lending, trading, instant transaction processing, and insurance. can provide a seamless platform for decentralized finance in the metaverse (policies, and monetization of virtual goods and services).
Additionally, fintech companies can leverage the intuitive and engaging metaverse interface to provide financial education and advice to a wider audience.
“Traditional financial services companies operate in a more rigid infrastructure and environment, which is often dynamic and stifles innovation. Fintech can provide the skills needed to transform the world, so fintech can bridge the gap between traditional financial services and the metaverse.”
“The Metaverse is a great solution for enhancing communication with people.”
Slava PodmurnyTechnology Partner CEO visa techexplained how the Metaverse can specifically improve the relationship between fintechs and consumers.
“Building customer relationships based on trust and mutual understanding is critical for all sectors of the financial industry. The Metaverse is a great solution for enhancing communication with people.
“By replicating real-world objects and processes in a virtual environment, this technology can also provide a graphical representation of financial services to help customers better understand the information.
“So companies can also make their clients part of these events, which allows them to offer a higher quality of service in a modern format.”
“Collaboration of multiple industry participants”
David Cadio-MolocloFinancial Services Innovation Leader EY Americasdiscussed the importance of collaboration for Fintech.
“The metaverse as it is currently envisioned is too broad and complex to be built by just a handful of companies. Engaging consumers at scale will require the collaboration of multiple industry participants. Fintech is no exception.
“In the Metaverse, fintech is as much about collaboration as it is about integration. Setting up and managing Web3 wallets, exchanging cryptocurrencies and fiat currencies, storing or transferring digital assets is no easy task.
“Fintech companies will work with each other and with TradFi to build an open standard that will create a starting and ending point for crypto-to-fiat transfers to store, create, and store digital assets. and transfer capabilities are integrated into existing platforms that users are more familiar with, such as existing online banking.
“Services such as cryptocurrency lending, trading and custody require multiple players working together across a rapidly evolving regulatory environment to provide a more seamless experience for users.”
A range of fintech options embedded as a single integration point
Justin PassalacquaChief Market Officer, North America world linealso explained how the Metaverse brings together different sectors of Fintech.
“The Metaverse is the next evolution of digitization and embedded finance. Every aspect of financial services will be required and payments will be an essential element.
“But innovation comes with streamlining for efficiency and customer convenience. Integrate multiple fintech products within a virtual or augmented ‘storefront.’
“For example, your avatar can go to a virtual gym, pay for membership (digital wallet, direct from bank account, non-fungible tokens), insurance, rent equipment purchased (buy now, pay later), and asset management, all in one experience and authenticated by biometrics.
“The Metaverse takes these innovations to the next level by delivering enhanced experiences and reducing disruptions to the customer journey.
“Various providers in the value chain are likely to be absorbed by fintech companies with strong and established brand recognition and trust, especially in terms of payment flexibility and cybersecurity.
“Rather than building or buying their own technology, smaller organizations may be best off leveraging these strategic players through partnerships or embedding their products into the customer experience. All in all, we see a variety of fintech options incorporated as a single point of integration within the metaverse.”