Top

Published in:

2023 | OriginalPaper | Chapter

1. Metaverse—The Immersive 3D Virtual World’s Innovation Diffusion in the Financial Sector

Author : Abeba N. Turi

Published in: Financial Technologies and DeFi

Publisher: Springer International Publishing

Activate our intelligent search to find suitable subject content or patents.

search-config

AI-assisted search

Off

Abstract

The chapter portrays possible traditional finance landings in the metaverse and emerging financial technology constructs of the 3D virtual space. It further provides insights on how financial institutions can benefit from the emerging wave of the 3D Internet beyond the hype. The financial component of the metaverse is one of the vital developments we will observe in the years to come as the applications and business cases that run on it emerge. In connection with this, the chapter presents a detailed analysis of the opportunities and challenges of metaverse banking by closely examining the 3D virtual economic system and its focal constructs. The potential for Defi protocols and fintech companies is immense to facilitate financial interactions in metaverse platforms. Yet, not to be left behind in our evolving digital world, there is a potential for legacy financial institutions to leverage metaverse in creating value through a thoughtful virtual presence. Yet, this will take time, and a detailed examination of the financial application areas is vital before any at-scale enterprise adoption where most metaverse platforms are sparsely populated.

Dont have a licence yet? Then find out more about our products and how to get one now:

Springer Professional "Wirtschaft+Technik"

Online-Abonnement

Mit Springer Professional "Wirtschaft+Technik" erhalten Sie Zugriff auf:

über 102.000 Bücher
über 537 Zeitschriften

aus folgenden Fachgebieten:

Automobil + Motoren
Bauwesen + Immobilien
Business IT + Informatik
Elektrotechnik + Elektronik
Energie + Nachhaltigkeit
Finance + Banking
Management + Führung
Marketing + Vertrieb
Maschinenbau + Werkstoffe
Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

inform now

Springer Professional "Technik"

Online-Abonnement

Mit Springer Professional "Technik" erhalten Sie Zugriff auf:

über 67.000 Bücher
über 390 Zeitschriften

aus folgenden Fachgebieten:

Automobil + Motoren
Bauwesen + Immobilien
Business IT + Informatik
Elektrotechnik + Elektronik
Energie + Nachhaltigkeit
Maschinenbau + Werkstoffe

Jetzt Wissensvorsprung sichern!

inform now

Springer Professional "Wirtschaft"

Online-Abonnement

Mit Springer Professional "Wirtschaft" erhalten Sie Zugriff auf:

über 67.000 Bücher
über 340 Zeitschriften

aus folgenden Fachgebieten:

Bauwesen + Immobilien
Business IT + Informatik
Finance + Banking
Management + Führung
Marketing + Vertrieb
Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

inform now

next chapter Fintech: Emerging Trends and the Future of Finance

https://forkast.news/headlines/south-korea-kb-kookmin-bank-presents-metaverse-vr-bank-testbed/

https://www.thebanker.com/Transactions-Technology/South-Korea-s-banks-move-from-the-pandemic-to-the-metaverse?ct=true

https://www.koreatimes.co.kr/www/biz/2022/02/602_323865.html

https://fintechnews.sg/57530/fintech/what-is-behind-the-metaverse-boom/

Bloomber Intelligence at https://www.bloomberg.com/professional/blog/metaverse-may-be-800-billion-market-next-tech-platform/ Accessed on June 8, 2022.

Gartner research on the metaverse notion at https://www.gartner.com/en/newsroom/press-releases/2022-02-07-gartner-predicts-25-percent-of-people-will-spend-at-least-one-hour-per-day-in-the-metaverse-by-2026 Accessed on June 1, 2022.

Available at an average transaction speed of 66 cryptocurrencies with the highest market cap as of March 2022 https://www-statista-com.ezproxy.myucwest.ca/statistics/944355/cryptocurrency-transaction-speed/ Accessed on June 14, 2022.

See, for example, a visit to the Decentraland, “Decentraland: The Metaverse’s Early Mover” by Mario Gabriele at the Generalist, https://www.readthegeneralist.com/briefing/decentraland. Accessed on June 21, 2022.

TerraZero https://terrazero.com/tech-firm-closes-first-metaverse-mortgage-for-acquisition-in-decentraland/ Accessed on May 25, 2022.

https://newsroom.mastercard.com/press-releases/mastercard-and-swarovski-launch-virtual-reality-shopping-experience/

For example, Axis Bank, India—uses Iris scan authentication tech (see: https://www.axisbank.com/docs/default-source/press-releases/press-release%2D%2D-axis-bank-introduces-iris-authentication-over-micro-atms.pdf?sfvrsn=7277b455_0)

The Verge reported, “Facebook is spending at least $10 billion this year on its metaverse division

And expects to spend more ‘for the next several years’” https://www.theverge.com/2021/10/25/22745381/facebook-reality-labs-10-billion-metaverse Accessed on March 15, 2022.

Ron Shevlin at the Forbes from the observations on Fintech Snak Tank on February 4, 2022, Digital Land Grab: Metaverse Real Estate Prices Rose 700% In 2021 https://www.forbes.com/sites/ronshevlin/2022/02/04/digital-land-grab-metaverse-real-estate-prices-rose-700-in-2021/?sh=4daa4b7c7cdc Accessed on June 2, 2022.

On November 2, 2021, The Korea times ran a story on “Korea launches 'metaverse' alliance“ highlighting the governmental and institutional attention toward the emerging 3D virtual world and its enabling technologies. Retrieved in June 2022.

https://fintechmagazine.com/sustainability/17-fintech-trends-you-should-know-about-ultimate-guide

https://www.caixabank.com/comunicacion/noticia/imagin-takes-the-leap-into-the-metaverse-becoming-the-first-european-fintech-company-in-the-virtual-world_en.html?id=43410

https://www.statista.com/statistics/259455/value-of-games-industry-mergers-and-acquisitions-worldwide/

Yahoo Finance reported on November 30, 2021, reported “KB Kookmin Bank—one of the biggest financial institutions in South Korea—has entered the virtual realm with the development of the KB Metaverse VR Branch Testbed.” https://ca.finance.yahoo.com/news/south-korea-kb-bank-enters-121438920.html Accessed on April 21, 2022.

Redefining Customer Experience in Financial Sector with VR and AR https://ibsintelligence.com/blogs/redefining-customer-experience-in-financial-sector-with-vr-and-ar/ Accessed on June 11, 2022.

Available at Stripe: https://stripe.com/en-ca/use-cases/crypto Accessed June 2022.

see Shevlin’s observations of the JPMorgan’s Decentraland lounge from the Fintech Shark Tank at the Forbes at https://www.forbes.com/sites/ronshevlin/2022/02/16/jpmorgan-opens-a-bank-branch-in-the-metaverse-but-its-not-for-what-you-think-its-for/?sh=638a5700158d Accessed on June 5, 2022.

Abbott M. and Muray J. (2022, April). The ultimate guide to banking in the metaverse. Accenture. Accessed May, 2022, from https://bankingblog.accenture.com/ultimate-guide-to-banking-in-the-metaverse

Accenture. (2022). Accenture technology vision 2022 report, meet me in the metaverse the continuum of technology and experience, reshaping business.

Ball, M. (2021). ‘Payments, payment rails, and blockchains, and the metaverse.’ MatthewBall.vc, Available at: Accessed June, 2022, from https://www.matthewball.vc/all/metaversepayments

Bhagvan V. (2019, May 27). IBS Inteligence, redefining customer experience in financial sector with VR and AR. Accessed April, 2022, from https://ibsintelligence.com/blogs/redefining-customer-experience-in-financial-sector-with-vr-and-ar/

Bordo, M. D., Jonung, L., & Siklos, P. L. (1997). Institutional change and the velocity of money: A century of evidence. Economic Inquiry, 35(4), 710–724.CrossRef

Citi Bank Report. (2022, March). Metaverse and money- decrypting the future. Accessed June, 2022, from https://ir.citi.com/gps/x5%2BFQJT3BoHXVu9MsqVRoMdiws3RhL4yhF6Fr8us8oHaOe1W9smOy1%2B8aaAgT3SPuQVtwC5B2%2Fc%3D

Gupta A. (2022). What is a Metaverse? Gartner article from January 28, 2022. Accessed April, 2022, from https://www.gartner.com/en/articles/what-is-a-metaverse

Improbable. (2022, January 20). Most important components for creating a viable metaverse according to video game developers in the United States as of November 2021. In Statista. Accessed June 28, 2022, from https://www-statista-com.ezproxy.myucwest.ca/statistics/1289137/us-game-developer-metaverse-viable-components/

Johnson A. (2022). Don’t Build Branches in the Metaverse: At least, not yet, fintech Takes, Cornerstone Advisors. Accessed June, 2022, from https://newsletter.fintechtakes.com/p/metaverse-branches

Long K. (2022). Banks’ experiments in the metaverse, The Banker. Accessed May, 2022, from https://www.thebanker.com/Transactions-Technology/Technology/Banks-experiments-in-the-metaverse?ct=true

Moy C. (2022). Opportunities in the metaverse- how businesses can explore the metaverse and navigate the hype vs. reality. JPMorgan Report. Accessed June, 2022, from https://www.jpmorgan.com/content/dam/jpm/treasury-services/documents/opportunities-in-the-metaverse.pdf

Newzoo. (2022). Global Esports & live streaming market report key trends | market sizing and forecasts, special focus: Mobile Esports, blockchain, and co-streaming. Accessed April, 2022, from https://newzoo.com/insights/trend-reports/newzoo-global-esports-live-streaming-market-report-2022-free-version/

PWC Report. (2019). Seeing is believing: How virtual reality and augmented reality are transforming business and the economy. Accessed June, 2022, from https://www.pwc.com/gx/en/technology/publications/assets/how-virtual-reality-and-augmented-reality.pdf

Ratanjee, V., & Tschida, T. (2019). 3 strategies for humanizing the digital customer experience.

Samanidou, E., Zschischang, E., Stauffer, D., & Lux, T. (2007). Agent-based models of financial markets. Reports on Progress in Physics, 70(3), 409.CrossRef

Scott-Briggs A. (2022) Banking and the Metaverse–The future of finance. TechBulliot. Accessed Jun 5, 2022, from https://techbullion.com/banking-and-the-metaverse-the-future-of-finance/

Shelvin, R. (2022). The coming boom in Metaverse lending for banks, observations from the Fintech shark tank. Forbes. Accessed May, 2022, from https://www.forbes.com/sites/ronshevlin/2022/02/14/the-coming-boom-in-metaverse-lending-for-banks/?sh=6d0d51365984

Shevlin, R. (2022). What’s going on in banking 2022: Rebounding from the revenue recession, industry report, cornerstone advisors. Accessed June, 2022, from https://f.hubspotusercontent40.net/hubfs/166442/Whats-Going-On-In-Banking-2022N_Cornerstone-Advisors.pdf

Sortlist. (2022, April 1). In what type of projects does your company invest in the metaverse? [Graph]. In Statista. Accessed June 28, 2022, from https://www-statista-com.ezproxy.myucwest.ca/statistics/1302200/metaverse-project-investment-businesses/

The Block. Research Report. (2022). 2022 digital asset outlook report. Accessed June, 2022, from https://www.theblock.co/post/127723/the-block-research-2021-digital-asset-outlook-report

Turi, A. N. (2020a). Currency under the web 3.0 economy. In: Technologies for modern digital entrepreneurship (pp. 155–186). Apress, .

Turi, A. N. (2020b). Technologies for Modern Digital Entrepreneurship. Apress.CrossRef

Title: Metaverse—The Immersive 3D Virtual World’s Innovation Diffusion in the Financial Sector
Author: Abeba N. Turi
Publisher: Springer International Publishing
Book: Financial Technologies and DeFi
Print ISBN: 978-3-031-17997-6

Electronic ISBN: 978-3-031-17998-3

Copyright Year: 2023
DOI: https://doi.org/10.1007/978-3-031-17998-3_1

Springer Professional

Abstract

Please log in to get access to your license.

Dont have a licence yet? Then find out more about our products and how to get one now:

Springer Professional "Wirtschaft+Technik"

Springer Professional "Technik"

Springer Professional "Wirtschaft"