Banks Are Positioning To Dominate In The Metaverse
One of the Latest Banks in the virtual world is Shinhan Bank. It is one of the top four lenders in South Korea by net income.
It opened a headquarters in the Metaverse. It wants to provide what it called financial and non-financial services.
Among the banks in Korea, it is the first to be present on this platform.
But it’s not the only bank that tiptoedly decided to be present in 3D.
Here are the services they intend to offer in the virtual world:
– The virtual bank in the metaverse of “Shinamon” will include areas for finance, health care, art, and sports.
– They said they conducted a five-day trial of Shinamon’s service in June this year and attracted 85,000 visitors.
– Shinhan Bank’s announcement follows a series of experiments by the lender with blockchain and cryptocurrency-related services.
– Shinhan Bank is also an early investor in Korea Digital Asset Custody, an industry consortium that provides cryptocurrency custody services.
– The bank is currently partnered with Korbit, one of South Korea’s big five cryptocurrency exchanges, in providing users with real-name deposit and withdrawal accounts mandated by local regulations for transparent transactions.
– See related article: US, South Korea filed for over 75% of world metaverse patents: report.
OTHER METAVERSE AFFECTED BANKS: HSBC AND BARCLAYS
Other world’s leading banks are entering the Metaverse, such as HSBC and Barclays.
HSBC will launch a virtual version of its UK headquarters in the virtual world Entropia Universe. The bank plans to offer financial services, such as credit cards and checking accounts, to virtual avatars.
HSBC is one of the largest banks in the world. It offers a wide range of financial products and services, from credit cards to checking accounts, insurance, and investments. They are now taking a step into the digital age with entry into the Metaverse.
Barclays has launched a learning platform within its metaverse that allows users to acquire knowledge and training on issues related to work and finance.
Barclays is an institution offering financial services to individuals, families, and businesses across the UK.
Their platform in the Metaverse offers users the ability to participate in training courses on topics such as cash management, stock investing, and even building startups with sustainable business models.
Together, these banks are ushering in a new era in the world of digital finance that could fundamentally change how people manage and use their funds.
While traditional banking remains the primary investment channel, Metaverse banks offer more innovative services that can increase users’ flexibility and accessibility to diversified financial products.
Recently, other companies have submitted patent applications related to the Metaverse, demonstrating a strong interest from the financial industry for the potential offered by the virtual world.
Along with the increase in investment options available in this space, more and more people will be able to access financial products that can help achieve their goals.
CRYPTOCURRENCIES CONTINUE THEIR LEAD IN THE METAVERSE
Cryptocurrencies continue to be an important part of the virtual world, even if they have suffered a sharp market decline in recent months.
It is almost certain that their distinction will make them perfect for the virtual space we are facing soon.
So the role of virtual banks will need to be aimed at services related to cryptocurrencies.
Cryptocurrencies have a high innovation potential and can help improve the security, transparency, and efficiency of financial services.
The lenders that are currently part of the Metaverse are trying to make the most of the potential on offer by providing advanced financial services that can help people achieve their goals.
But they are still far from being intermediaries for cryptocurrencies.
So there is a market vacuum that will need to be filled. Will traditional banking institutions succeed?
Or will companies like Binance doing it?
BANK DOMINANCE ON THE METAVERSE OR OUTSTANDING FAILURE?
The future of financial services in the Metaverse will depend on the decisions that banks make.
Right now, there’s some curiosity from institutes like HSBC and Barclays to see how the Metaverse evolves.
If they fail to implement the necessary technologies in time, it is likely other operators of the Metaverse.
Some will plant the first flags in 3D trying to make their presence dominant.
Have you noticed that the physical branches of the banks are located in the main squares of cities and towns?
No wonder they also now want to place their flags in the Metaverse so that their presence is noticeable and strong.
This is part of a broader process of digitalization of the banking sector, but only time will tell if they will be able to maintain their market shares or if they will be replaced by new players with greater vision and technological capacity.
OBSOLETE BANKING SERVICES:
From deposits to credit, to the exclusive function they had 30 years ago as an exchange. All services that are no longer used.
At this point, banks have to reinvent themselves or give way to younger and more advanced players.
Why are these services no longer the bank’s own?
Because there are a large number of new services have appeared in recent years, especially in the field of digital finance, which has made many services offered by banks obsolete.
Just think of all the online services related to trading and investment management.
Regarding financing, there are specialized and cheaper credit institutions.
Here the banks interested in grabbing the Metaverse will be the most feared ones, the investment banks.
What are Investment Banks?
Investment banks are financial institutions that provide specialized services to businesses, governments, and wealthy individuals.
They mainly deal with asset management, stock market investments, algorithmic trading, and other activities related to the management of large estates or the issue of securities.
They do this as their main activity to earn themselves, and to make all their shareholders earn.
Investment banks and those with lots of money will land in the Metaverse.
In the world of cryptocurrencies, they are already playing a master role.
I am extremely convinced that the strong swings, especially downwards, were created ad hoc by these powerful funds and investment banks that knocked out many small traders and savers who had invested in Bitcoin or Ethereum.
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