Last year marked a turning point in human history. Significant developments are taking place in all areas of our lives, and their effects continue to create new areas of transformation around the world. Undoubtedly, the biggest and most remarkable of these developments is experienced in the digital transformation environment.

 

The issue of creating digital assets and digital assets has gained great importance for both individuals and businesses today, triggered by the global pandemic, the quarantine measures taken accordingly, and the increasing interest in blockchain and crypto money.

 

Although a perception was created with innovative technologies such as augmented reality, VR headset technology and virtual world concept, the "Metaverse", which entered many of our lives with the rebranding of Facebook, became the last striking point of digitalization. As in many other fields, this sandbox has left finance innovators hungry for how fintechs and new fintech solutions can deliver financial services to this whole new world.

 

Technologies to Shape the Financial Sector in the Virtual World

 

In the age of Finance 4.0, we all know that the goal is to make financial services as invisible and accessible as possible. This is exactly what Amazon does with e-commerce today, or what Google does with information. Metaverse, on the other hand, offers a whole new reality to all these financial service environments.

 

Now let's talk about the leading financial services and technologies that pioneered the formation of the meta-reality world and will certainly continue to influence the future of finance. 

 

Blockchain Technology

 

Where humanity and the assets it creates, be it real assets or digital assets, economic dynamics begin to emerge and the need for money begins to emerge. So, Cryptocurrency is money that enables financial transactions in the virtual world.

 

Transactions in the virtual world are carried out instantly and securely with the blockchain technology behind the cryptocurrency. Blockchain technology is also used to write smart contracts and is also used as a public ledger that determines who owns what in terms of digital assets.

 

Blockchain 1.0 simply consisted of blocks containing data and a chain linking these blocks. Today, in the age of Blockchain 3.0, it is possible to see blockchain technology in many different fields, such as in the financial sector. In the metaverse world, artificial intelligence and blockchain technologies are expected to come up with new applications.

 

Metaverse Wallets

The most powerful social network, Facebook, with its new name Meta, has already invested $50 million to fund nonprofit groups to 'build metaverse responsibility'.

 

As one of the first big tech companies to embrace meta-reality, it's clear that Facebook hasn't just changed its name. With the new Digital Wallet technology introduced as Novi, Facebook seems to have made its attempts to stay in the game in the field of financial services.

 

 

Virtual Assistants

 

Customer interactions are one of the things that meta-reality will change the most in the world of finance and banking. In fact, Bank of America announced that it will provide virtual reality (VR) training to a total of 4300 employees in order to keep up with this change.

 

This means that financial institutions are preparing to take AI-powered virtual assistant services such as chatbots and robo consulting to the next level in order to both adapt to virtual reality and design more seamless customer experiences.

 

How Will Digital Platforms Improve the Physical World Experience?

 

Social media and video game companies are at the epicenter of the capacity of the metadata warehouse, leveraging their massive user bases, creation platforms, interactive digital events, and cutting-edge hardware to create multimedia content and lay the groundwork for the metaverse.

 

While the focus may seem to be on virtual reality, digital assets, blockchain technology, cryptocurrencies and more often video games, the metaverse will indeed provide much broader and endless prospects for a wide variety of industries.

 

Whatever form the metadata store ultimately takes, its existence will need technical advances in infrastructure, consumer-centric devices, and platform development, among other areas. Metaverse will serve as a workspace for these creators, whether they're building a new game, digital goods, or complete virtual worlds.

 

How Will Banks and Other Financial Institutions Survive?

 

In the virtual world created with Metaverse, the participation of big technology companies in the competition in the financial environment has completely changed the rules of the game. It is almost impossible for banks and other traditional financial institutions to stand alone in all processes that require rapid adaptation and innovative solutions.

 

It also looks like it will be difficult for them to stay competitive if they don't make the necessary investments for digital transformation starting today. Collaborating with fintechs and benefiting from agile fintech solutions in order to exist in this virtual reality, which is still very new and at the idea stage, will be the fastest shortcut to have a meaningful presence in the metaworld.

 

We hope that this blog post will be beneficial for you. We will continue to create useful works in order to get inspired by everyone. We are sure that we will achieve splendid things altogether. Keep on following Finage for the best and more.  

 

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