How can Metaverse consolidate different industries of Fintech? With BNB Chain, Worldline and more.
We have the invention and development 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 how we live our everyday lives. As technology advances, how can the likes of Web3, metaverse, blockchain and DeFi change the future of fintech?
While a lot of hype has surrounded the metaverse in recent years, we have yet to see exactly how it will affect people’s lives and various industries.
In an effort to understand how the metaverse can specifically consolidate various sectors of the fintech industry, Fintech Times asked a number of industry experts for their opinions and perspectives.
“Interoperability will be key”
Julia Streets is the CEO of international fintech business development, marketing and communications consultancy Counseling in the streets. Streets discusses what the term ‘metaverse’ actually encompasses, as well as how fintech can use it.
“For a strong definition of the metaverse, I refer to Responsible Metaverse Alliance, the social enterprise and international movement that supports the responsible development of the metaverse. The metaverse is a construct of multiple virtual worlds that come together to enable social connections in 3D virtual universes that resemble reality.
“It is a set of immersive technologies (virtual, augmented and mixed reality) and haptics, as well as AI, ML, video conferencing, gaming, blockchain, cryptocurrencies, cloud email, social media and live streaming.
“Fintechs can create amazing experiences by mixing elements drawn from across the industry. Imagine buying metaverse property with loan financing and insurance. Rent your property, collect rent, extract the value into the real world or pay for a metaverse education program or other services. Some believe that we are only five to ten years away from this common way of living and working, and interoperability will be key.”
“A new asset class that can increase in value”
Alvin Kandirector of blockchain network growth BNB chainexplains the impact the metaverse could have on financial services:
“Metaverse is an emerging technology that can revolutionize fintech services, creating a unified platform that offers users a seamless and immersive experience. With investment opportunities in digital real estate and virtual businesses, the metaverse provides a new asset class that can increase in value just like physical property.
“Virtual worlds that Decentralized country and Somnium Space has developed platforms where users can buy virtual land and build on it, and virtual properties have already been sold for millions of dollars.
“Metaverse platforms that Other lives have their own virtual currencies, so that users can buy and sell goods and services within the platform. Moreover, the metaverse is home to a growing number of DeFi platforms, such as Aavegotchi and Sandboxwhich allows players to earn tokens by staking virtual assets and enables peer-to-peer transactions.
“In addition, metaverse provides a secure and verifiable digital identity for users, which can be used to authenticate transactions and gain access to financial services. Some players are already developing digital identity solutions in the metaverse, such as Block pass and Self key.
“Ultimately, the metaverse provides a more immersive and interactive environment for buying, selling and trading gaming assets. Platforms like Engine enable the creation and trading of virtual assets, which 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 about and interact with fintech services.”
“Fintechs can bridge the gap between traditional financial services and the metaverse”
Kamales Lardi is the CEO of digital business transformation partner Lardi & Partner Consulting and the author of The human side of digital business transformation. She commented on how the metaverse can “bring together” different sectors of the fintech industry.
“The metaverse can bring together previously distinct segments of the fintech industry by providing a unified platform for collaboration and innovation. Fintech companies not only play a key role in improving modes of interaction with their customers and retaining them, but also generate new revenue streams and business expansion opportunities – cross selling insurance, crypto investments and investing in NFTs.
“Fintech companies pioneering cross-border payments can provide a seamless platform for decentralized finance in the metaverse, using digital currencies and secure blockchain technology (including cross-border payments, peer-to-peer lending, trading, instant transaction processing, insurance guidelines, as well as making money from 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 operate within a more rigid infrastructure and environment, and often hinder dynamism and innovation. Fintechs can offer traditional firms this speed of change and the skills required to transform the financial services industry. As such, fintech can bridge the gap between traditional financial services and the metaverse.”
“The Metaverse is a great solution to improve communication with people”
Slava PodmurnyiCEO of technology partner Visartechexplained how the metaverse could specifically improve the relationship between fintechs and consumers.
“For every sector of the financial industry, it is extremely important to build client relationships based on trust and mutual understanding. Metaverse is a great solution for improving communication with people.
“By recreating 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 information.
“Therefore, companies can also make the customer a part of these events, which will allow offering higher quality services in a modern format.”
“Cooperative effort from several industry participants”
David Kadio-Morokroinnovation leader for financial services at EY Americasdiscussed the importance of collaboration for fintechs.
“The metaverse as it is currently envisioned is too large and too complex to be built by just a handful of companies. It will require collaborative efforts from multiple industry participants to engage consumers at scale. Fintech will be no exception.
“In the metaverse, fintech is as much about collaboration as consolidation. Setting up and managing Web3 wallets, exchanging crypto for fiat, and storing or transferring digital assets are not easy tasks.
“Fintech companies will work with each other and TradFi to build on open standards. This will create on- and off-ramps for crypto-to-fiat transfer, and integrate functionality to store, create and transfer digital assets to existing platforms that users are more familiar with – for example existing online banking.
“Services like crypto lending, trading and custody require multiple players to work together across a rapidly evolving regulatory environment to deliver more seamless experiences to users.”
“A number of fintech options baked in as single integration points
Justin Passalaquamarketing manager in North America at World linealso explained how the metaverse will bring different sectors of fintech together.
“The metaverse is the next evolution of digitization and embedded finance – all aspects of financial services will be necessary, and payments will be an inherent component.
“But with any innovation comes streamlining for efficiency and customer-friendliness, in this case; consolidating multiple fintech offerings within virtual or extended ‘storefronts.’
“For example, your avatar can go to a virtual gym and get membership payment (digital wallet, direct from a bank account, non-fungible tokens), insurance, lending for purchased equipment (Buy now, pay later) and wealth management all built into one experience, authenticated through biometrics.
“Metaverse takes these innovations to the next level by providing an elevated experience and reducing disruptions in the customer journey.
“The various suppliers in the value chain can be absorbed into fintech companies with strong, established brand recognition and trust, especially when it comes to payment flexibility and cyber security.
“Smaller organizations can leverage these strategic players through partnerships rather than building or buying their own technology, or alternatively, embedding their offerings into the customer experience may be the best move. Overall, we will see a wider variety of fintech options baked into into as single integration points in the metaverse.”
