Banks, credit unions, and other financial institutions are always looking for ways to improve the consumer experience. Augmented Reality (AR) and Virtual Reality (VR) are already making positive impacts in this sector in a variety of ways.
According to Deltec Bank, Bahamas – “The primary benefit that AR and VR bring to banking is the ability to visualize data.” Humans process visual stimuli better than written language when understanding information, and these technologies make it easier to go through a significant amount of it. A virtual world called “Stock City” already uses this approach to create a three-dimensional city that represents portfolios.
The banking industry is also looking at AR and VR in these areas.
1. Virtual Trading
Companies are using AR and VR to create virtual workstations for trading. It creates two- and three-dimensional elements that supplement the existing processes of the financial institution. Firms like Comarch use it with their wealth management software to provide consumers better access to the tools needed to manage personal finances.
2. Security Improvements
AR and VR provide the banking sector with improved biometric security options. This benefit would make it much more of a challenge for hackers to access services, ATM transactions, or accounts. Each request would need to be made in the virtual world.
3. Financial Awareness
Employees and customers can benefit from AR and VR when it provides access to financial information. This technology offers massive potential for teaching individuals, providing access to financial products, and similar advantages.
MasterCard already partners with Wearality to create a digital world where purchases are possible without removing oneself from a VR environment. One of their developments in this area is called “Priceless.” Players can buy clothes while in virtual reality without performing any offline tasks. This approach will likely expand into banking services, e-commerce transactions, and bill paying features in time.
5. Customer Acquisition
About 3 out of every 4 Millennials use companies other than their local bank for financial products. Names like Apple, Google, and PayPal are making their way into the financial services sector. Using AR and VR as part of the acquisition process can secure more customers who feel attracted to instant digital methods.
Banks must ensure they can recruit today’s top talent to bring about tomorrow’s desired results. Using AR and VR gives firms in this sector the ability to provide experiences that help employees form teams and become more productive.
Augmented Reality and Virtual Reality are still in their infancy. These benefits are likely just the beginning of what is possible when banks can implement these technologies across all departments. The world continues to evolve its processes, which means a focus in this area will ensure that the financial sector can keep up with other industries to provide customers with what they require.
Disclaimer: The author of this text, Robin Trehan, has an Undergraduate degree in economics, Masters in international business and finance and MBA in electronic business. Trehan is Senior VP at Deltec International www.deltecbank.com. The views, thoughts, and opinions expressed in this text are solely the views of the author, and not necessarily reflecting the views of Deltec International Group, its subsidiaries and/or employees.
About Deltec Bank
Headquartered in The Bahamas, Deltec is an independent financial services group that delivers bespoke solutions to meet clients’ unique needs. The Deltec group of companies includes Deltec Bank & Trust Limited, Deltec Fund Services Limited, and Deltec Investment Advisers Limited, Deltec Securities Ltd. and Long Cay Captive Management.