The Metaverse wave has just begun, and several industries are already attempting to grasp it.
While it is evident that this new trend will have an impact on the gaming, media, and health industries, leading innovators in the finance industry have some ideas to explore as well. Some industry experts have even begun to discover how the integration of Metaverse might improve new FinTech solutions. According to some studies, Metaverse technology is projected to provide newer and better business models, eventually leading to the evolution of cryptocurrency into a large-scale financial system. Let us wait and see what the future merging of Metaverse and FinTech has in store for us.
What does Metaverse mean?
Even though the Metaverse is not a new concept or trend, many individuals are unsure of its power, utilization, and basic premise. In layman’s terms, it is a synthesis of meta and universe. The concept behind its birth is to combine virtual reality and augmented reality to create an unrivaled virtual presence. Some people refer to it as a 3D universe that is virtual, interactive, collaborative, and immersive. Whereas the firm that originated this concept, Meta, has numerous ambitions to develop with this technology, we see many other companies coming up with other unique concepts as well.
Because of the Covid-19 pandemic, the globe has become enclosed, encircled by social media and other apps for communicating. This has given users the confidence they needed to trust applications to take their interaction to the next level. It would not be incorrect to argue that Metaverse would be a better version of the collaborative universe of applications in which we have spent our life. It provides numerous chances for businesses to grow and flourish in ways never before envisaged. It’ll be interesting to see how the Metaverse affects our reality in the next years.
What exactly is FinTech?
FinTech’s celebrity began only a few years ago, and it felt like a dream. However, with time, it has proven that it is here to stay and will improve financial sector processing more than before. Let us define FinTech for you if you are unfamiliar with the term. It is the application of contemporary technology to improve the performance of processes, procedures, and the financial industry as a whole. This comprises a wide range of software, mobile apps, algorithms, bots, and other tools.
The digitization of the financial industry has also aided the growth of cryptocurrencies. Forbes 50 also listed a few companies that are working hard to make the banking industry more technically sound and efficient. Many people believe that 2022 will be the year of FinTech because it is growing more advanced. Various corporations are preparing their FinTech mobile applications to take over the world as well.
What is the Metaverse’s relationship to FinTech?
Whereas one group has high aspirations for the FinTech business this year, the other believes that Metaverse will transform the world forever. Surprisingly, there is a third set of people who feel that the marriage of FinTech and the Metaverse would result in a much smarter, more efficient, and superior form of FinTech. While many individuals are wondering how the FinTech business will change for the better with the help of Metaverse, many others are oblivious of the potential of this combination. Let’s look at two major reasons why this merger is likely.
Increase Due to Pandemic
While the Covid-19 pandemic ripped the world apart into even smaller cubicles for the sake of social separation, technology played a role in keeping everyone near. People have been using a variety of apps and platforms to stay in touch and work as if nothing had ever gone wrong. This fueled the cryptocurrency and Blockchain industries’ ascension to new heights.
Customers want enterprises to include AR and VR experiences into cryptocurrency as the next big step. This is exactly what the FinTech innovators were thinking. This is the primary reason for the combination of Metaverse and FinTech. We will see the emergence of new platforms and apps that will provide this much-desired functionality to users.
Solutions for Financial Data Management
Technology has become man’s best friend in recent years. We depend on technology more than ever before. While technology helps us with everything from reminders to fixing meetings, making grocery lists to buying groceries, caring for our aging parents to gifting our family on important occasions, we still want more.
Next, we want FinTech to be able to assist us with financial data management with the support of Metaverse. Because the sector is driven by its customers, it must provide whatever the customers require. Consumers are looking for methods that can transform the entire experience of managing the many financial transactions that are available today.
Metaverse and the Future of FinTech
Now that we’ve seen why industry insiders feel FinTech will change as a result of Metaverse engagement, it’s time to find out what the future holds for us. Consider a hypothetical future scenario. You’d likely be able to go to art exhibitions or take a virtual tour of a housing society before making a reservation for whatever you wanted. You may even envision yourself sitting in an auction of some valuable historical archives, bidding and providing your contact information for each successful bid.
The situations outlined above will have a significant impact on the economic ecology. All of these scenarios, however, come to a close with you making a purchase. This will necessitate the involvement of the FinTech industry. This is the point at which FinTech and Metaverse will work together to perform admirably daily.
Many brokerages and banks in various cities in Korea have begun working on constructing active virtual environments to give to their consumers beginning in August 2021. Many other countries are also seen to be welcoming this trend with open arms. As a result, it is abundantly evident that the emergence of Facebook’s company as Meta will not only provide Metaverse for its platforms but will also revolutionize the entire globe, including the FinTech industry. Let’s explore what changes occur in this new FinTech universe driven by Metaverse.
What is Finverse’s outlook for the future?
With Metaverse mixing well with FinTech, the banking industry is about to enter an entirely new era. It would not be incorrect to refer to this new universe as FinVerse. Banking and other financial sectors must adapt their traditional ways of doing business to fit into FinVerse. While it may appear that changing and developing the financial sectors will be difficult, it goes without saying that they will benefit from the best of both worlds – Metaverse and FinTech.
The only way to make it to the land of Meta is to come up with FinVerse-related thoughts. Seeing so many financial firms already working on methods to access this new world can be both thrilling and overwhelming for firms who are trailing. Whether you are a financial professional seeking fresh ideas to work on or a layperson curious about what FinVerse has to offer, here is a comprehensive list of new technology to look out for this year:
Banks and Cryptocurrencies
Because banks are the oldest gear in the finance industry’s machine, this year will bring many adjustments to make it stronger than before. The first shift we will witness in 2022 is more digitalization in the financial sector. Banks do not currently deal with cryptocurrencies. In the next months, FinVerse will enable banks to provide their customers with bank accounts that accept both tangible and intangible currencies.
FinVerse will also provide an additional degree of protection for both banks and clients. It will allow banks to secure cryptocurrency-related bank accounts by utilizing the client’s portfolio of NFTs. This is the best news for cryptocurrency users because it eliminates the need for them to bury their heads in financial books to deal with intangible currencies.
Mortgage Loans Acceptance in a Short period
When you apply for a mortgage loan at a bank nowadays, you must bring different documentation proving that you are financially capable of repaying the loan. Even if these documents are submitted, there is no certainty that your load will be authorized. Furthermore, it is not uncommon for these loans to take months to be approved rather than hours.
Consider a scenario in which your intangible currency is included in your possessions. Furthermore, there are no extra delays in the process because several algorithms are working at the end to make it speedier. This would be the most astounding news of 2022 if a large number of individuals invested in cryptocurrency. This is the world that the marriage of FinTech and Metaverse intends to provide in the coming months.
Making the Leasing Process Easier
In today’s environment, not everybody is financially secure enough to own a home. A large number of people are tenants. However, even living as a tenant necessitates the individual presenting himself as a respectable and employed individual. No one wants to rent a house or even a room to someone who won’t be able to pay the rent in four months.
FinVerse offers to give you the tools you need to demonstrate the revenue you received from play-to-earn games on a lease and secure a deal. There are plenty of apps, such as AxieInfinity, that pay their players to win games. You will be able to exhibit these profits on the lease and also have them authenticate you as a trustworthy tenant in the future.
Simple Money Transfers Across the Internet
It was a difficult undertaking to launch cryptocurrencies and then persuade the rest of the world to believe them enough to invest in them. However, humanity astounded the FinTech leaders with an incredible response, and fresh coins were formed, giving rise to traditional financial infrastructure. Plaid, Stripe, Lithic, Use alloy, Codat Data, and many more are examples. These services made it simple for people to transfer money across the internet. They did not, however, resolve the conflict between Web2 and Web3.
FinVerse has identified this problem and plans to alleviate it for users in the next months. We would have some platforms that would provide better, cheaper, and faster ways to move money across the web. While some firms, such as MoonPay and Ramp, are already working on this issue, there is still a lot of work to be done.
The Consolidation of Larger Money Transfer Platforms
It comes as no surprise that the fitter ones get to stay in the market while the weaker ones slowly fade away. The same is true in the FinTech market. Money-transfer platforms that have begun to improve themselves to satisfy the new market and consumer expectations will be able to survive and thrive. The most pressing need at the moment is for these platforms to migrate to Web3.
Platforms such as Stripe have already transitioned to Web3, while many others are still grappling with this massive transformation. It is projected that these behemoths will soon buy the smaller enterprises and change the entire sector. This would guarantee that all sections of the world progressed equally in the FinVerse reality.
Conclusion
Once upon a time, the finance business was all black and white. It only started shifting a few years ago to meet the needs of the digital age, and since technology is continually growing, should the banking business stay the same? Certainly not! The Metaverse has just emerged as a fresh trend in the technology business. When finance sector professionals believe that the emergence of Metaverse will change the FinTech business, they are not mistaken.
We will see the finance industry evolve and expand beyond FinTech. It will evolve to fit in nicely with Metaverse and user requests. Changes will occur, beginning with traditional banking procedures and processes and progressing to the acceptance of cryptocurrencies at all levels. Cryptocurrencies will be viewed as more than merely intangible currencies and will be given the same weight as tangible currencies. Furthermore, winnings from various games will be considered acceptable for tenant leases and mortgage loans. These are just a few examples of the changes that the globe will witness in the coming months.
If these adjustments don’t seem like a big thing to you, know that app development companies will change their business practices as well. The marketplace will be swamped with apps that are sophisticated enough to deal with FinVerse. Some mobile app development companies, such as Seattle Software Developers, have already created dozens of apps that meet modern-day needs. If you don’t want to be left behind, now is the time to start working on any ideas you might have.
