The wave of Metaverse started just a few months back and we are already seeing a lot of industries trying to master it. While gaming, media, and health industries are obvious to get affected by this new trend, leading innovators in the finance industry have some ideas to develop on as well. Some of the industrial leaders have even started learning the way new fintech solutions can be made better with the merger of Metaverse. According to some reports, the technology of Metaverse is expected to form newer and better business models leading to the development of crypto into a large-scale financial system. Let’s see what the future merger of Metaverse and Fintech holds for us.
What does Metaverse stand for?
Even though Metaverse is not an entirely new concept and trend, still a lot of people are unaware of its power, usage, and basic concept. In simpler terms, it is a union of meta and universe. The idea behind its emergence is to blend virtual reality with augmented reality to present an unbeatable virtual presence. Some people like to refer to it as a 3D universe that is virtual, interactive, collaborative, and immersive in nature. Where the company Meta that introduced this concept has a lot of plans lined up to develop with this technology, we see many other companies coming up with other innovative ideas as well.
Due to the Covid-19 pandemic, the world has been living in an encapsulated world surrounded by social media and other apps for connecting. This has given people the sense of security they needed to trust apps to take their interaction one level above. It would not be wrong to say that Metaverse would be a better version of this collaborative world of apps we have spent our pandemic in. It holds a lot of opportunities for companies to grow and expand themselves in a way never imagined before. It is interesting to learn the ways Metaverse will be affecting our world in the years to come.
What is FinTech?
Just a few years back Fintech’s fame started off and it felt like a dream. However, with the passage of time, it has proved that it is here to stay and make the processing in the financial sector better than ever. If you are not well aware of Fintech, let us define it for you. It is the usage of modern-world technology to make processes, procedures and the overall finance industry perform better. This includes various software, mobile apps, algorithms, bots, and much more.
Digitization of the finance industry has helped cryptocurrencies to boom as well. Forbes 50 even mentioned some companies that are working tirelessly to make the finance industry technically sound and more efficient. A lot of people are seen arguing that 2022 is going to be the year of Fintech as it keeps becoming more advanced. We see various companies getting ready with their Fintech mobile apps to take over the world as well.
What does the Metaverse have to do with Fintech?
Where we have one group of people having high hopes from the Fintech industry this year, the other group believes that Metaverse is going to change the world forever. Surprisingly, we have a third group of people that believe that they are going to experience a much smarter, efficient, and better version of Fintech born by its merger with the Metaverse. While people are debating over the ways the Fintech industry will be changing for the better with the help of Metaverse, a lot of people are still unaware of the potential of this merger. Let’s see two major reasons why this merger is expected.
Boost Due to Pandemic
While the pandemic of Covid-19 tore the world apart into further smaller cubicles for the sake of social distancing, technology played its role to keep everyone close. We have seen a lot of apps and platforms being used by people to stay in touch and work as if nothing ever went wrong. This ignited the flight of the industry of cryptocurrency and Blockchain to achieve a new high.
Now, the next big step customers want the companies to take is to involve AR and VR experience in cryptocurrency. This is exactly what the fintech innovators had in their minds as well. This is the first and foremost reason behind the merger of Metaverse and Fintech. We would be seeing some new platforms and apps emerging providing this demanded feature to the consumers.
Financial Data Management Solutions
For the past years, technology has become man’s best friend. We rely on technology more than we ever did. While our tasks from reminders to fixing meetings, making grocery lists to buying groceries, and taking care of our elderly parents to gifting our family on special occasions is done by technology, we desire more.
Next, with the help of Metaverse, we want Fintech to be able to help us in financial data management as well. As the industry is driven by its customers, it has to deliver whatever the customers demand. Consumers are demanding methods capable of transforming the whole experience of managing various financial transactions provided today.
The Future of Fintech with Metaverse
Now that we have seen the reasons why industry experts believe FinTech will be changing due to the involvement of Metaverse, it is time for us to know what the future holds for us. Let’s imagine a scenario in the future. It is possible that you would be able to attend art exhibitions or have a virtual tour to a housing society and then do a booking for whatever you liked. You can also imagine a scene where you can sit in an auction of some precious old archives, do the bidding and give your details for every bid won.
The scenarios discussed above are going to be a huge change for the economic ecosystem. All of these scenarios, however, end at one point that is making a transaction from your side. This will require the intervention of the Fintech industry. This is the point where you would see Fintech going hand in hand with Metaverse to perform amazingly every day.
A famous magazine in Korea, The Korea Times, shared that since August 2021, various brokerages and banks in different cities of Korea have started working on creating active virtual environments to offer to their clients. A lot of other countries are also seen accepting this trend with open arms. So, it is perfectly clear now that the emergence of Facebook’s company as Meta is not just going to offer Metaverse for its own platforms, but transform the whole world including the Fintech industry. Let’s see what changes we are going to see in this new universe of Fintech powered by Metaverse.
What does the future look like for Finverse?
With Metaverse blending well with Fintech, it is going to be the start of an entirely new era for the finance industry. It would not be wrong to call this new universe FinVerse. Banking and other financial sectors are required to change their conventional ways of operating in order to fit into FinVerse. While it may sound tough for the financial sectors to change and develop, it goes without saying that they would be getting the benefit of both the worlds – Metaverse and Fintech.
The only way to make it to the world of Meta is to come up with ideas that revolve around FinVerse. Watching a lot of financial firms already working on ways to enter this new world can be exciting and overwhelming for the firms that are lagging. Whether you are someone from the financial world looking for ideas to develop on or someone who is just casually interested in knowing what FinVerse is going to offer, here is a complete list of new technology you should be expecting this year:
Banks Dealing in Cryptocurrencies
Since banks are the oldest cog in the machine of the finance industry, this year is going to be bringing a lot of changes for it to make it stronger than ever. The first change we are going to see in 2022 is further digital development in the banking sector. Currently, banks do not deal in cryptocurrency. In the coming months, FinVerse will empower banks to let their clients have bank accounts that deal in tangible as well as intangible currencies.
FinVerse is also going to add an extra layer of security for the banks as well as the clients. It will enable the banks to secure the bank accounts dealing in cryptocurrencies by using the client’s portfolio of NFTs. This makes the biggest good news for the users of cryptocurrencies as they would not have to bury their heads in finance books to deal with intangible currencies themselves.
Rapid Acceptance of Mortgage Loans
Today, when you apply at a bank for a mortgage loan, you have to pull out various documents showing that you are financially capable of returning the loan. Even after providing these documents, there is no guarantee that your load would get approved. Moreover, at times, these loans take not just weeks but months to get approved.
Imagine a world where your intangible currency is also counted in your personal assets. Moreover, the process also does not get unnecessary delays as various algorithms are working at the end to make the process faster. With a huge number of people investing in cryptocurrencies, this would turn out to be the most amazing news of 2022. This is the world the merger of Fintech and Metaverse is willing to offer in the coming months.
Making Lease Process Easier
In today’s world, not everyone is financially strong enough to have a house of their own. A lot of people are living as tenants. However, even living as a tenant requires the person to present himself as a trustworthy and employed person. No one is willing to rent out a house or even a room to someone who would not be able to cover the cost 4 months down.
FinVerse promises to empower you enough to show the income you earned from play-to-earn games on a lease and secure a deal. There are dozens of apps like AxieInfinity that provide their users money for winning in games. In the time to come, you would be able to show these earnings on the lease and have them verify you as a trustworthy tenant.
Easy Money Movement Across Web
It was indeed a difficult task to introduce cryptocurrencies and then get the world to trust them enough to invest. However, mankind amazed the Fintech leaders with an amazing response and newer cryptocurrencies were born giving birth to a traditional infrastructure for finance. These include Plaid, Stripe, Lithic, Use alloy, Codat Data, and many others. These platforms made it easy for the users to move money across the web. However, they failed to end the friction between Web2 and Web3.
FinVerse has highlighted this issue and is going to ease this pain for the users in the coming months. We would be having some platforms offering better, cheaper, and faster ways of moving money across the web. While we have some companies already working for this cause including Moonpay and Ramp, there is still a lot of work that needs to be done.
The Merger of Bigger Money Transfer Platforms
It is no surprise that the fitter one gets to stay in the market while the weaker one becomes dust slowly. Similar is the case in the market of Fintech. The money transferring platforms that have started developing themselves to meet the new demands of the market and customers will get to stay and flourish. The biggest demand of the time is for these platforms to move to Web3.
Platforms like Stripe have already moved to Web3 while a lot of others are still struggling with this huge change. It is expected that these giants are soon going to buy the smaller companies and transform the whole industry. This would ensure that all parts of the world are progressing equally in the world of FinVerse.
A Quick Wrap Up
There was a time when the finance industry was all black and white. Just a few years back, it started transforming to meet the needs of the digital world and since technology is always evolving, should the finance industry stay the same? Definitely not! Recently, the newer trend in the tech industry is the Metaverse. When the finance market leaders say that the industry of Fintech is going to be transformed with the emergence of Metaverse, they are not wrong.
We are going to see the finance industry changing itself and expanding beyond just Fintech. It will evolve to fit in well with Metaverse and the demands of the users. We will see changes starting from the conventional banking procedures and processes to the acceptance of cryptocurrencies at all levels. Cryptocurrencies will be regarded as more than just intangible currencies and would gain equal importance as tangible currencies. Moreover, the earnings from various games will be counted as valid for tenant lease and mortgage loans. These are just a few examples of the developments the world is going to experience in the coming months.
In case these changes don’t look like a huge deal to you, let us share that the app development companies are going to change their ways of operating as well. The market will be flooded with apps smart enough to deal in FinVerse. Some mobile app development firms like Origami Studios have already developed dozens of apps fitting the requirements of the modern days. If you don’t want to be left behind, it is the right time for you to start working on ideas you might have at the moment.
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