Born in 1978 in Mumbai, Praveen completed his schooling from St. Mary’s High School, Mt. Abu(Boarding School in Rajasthan). He completed his Bachelor of Engineering in Computer Science from D.Y. Patil College of Engineering, Mumbai. After a brief period of employment, he became a first generation entrepreneur when he started Celusion Technologies.The idea was based on the premise that they could build great software but today their software is changing the way people look at finance.
The metaverse is expected to be the next big thing in the world of technology. It consists of a virtual reality environment in which users may interact with a computer-generated world as well as other users. While technologies such as AR, VR and MR have been around for some time, the metaverse recently gained impetus when industry reports predicted it could be an $8 trillion market. Banking institutions are recognizing the metaverse’s enormous potential since it has the potential to transform the basics of banking and the future of companies.
New product development:
A thriving metaverse economy presents an untapped market providing the banks with an opportunity to offer insurance and credits against assets linked with metaverse technology, such as cryptocurrencies, NFTs, and virtual real estate. As a result, banks will have to accept cryptocurrencies for clients to buy and sell these items. For example, banks are extending loans and accepting tokens as collateral in virtual environments using NFTs shown in existing metaverses such as Decentraland. Banking institutions are also incorporating NFT payment support by creating a specific trading point within the metaverse, which complements the market dynamics of digital banking.
Aside from the prospect of product and service innovation in payments, investing, insurance, and lending, the virtual world offers banks the possibility to build stronger customer ties. Banking institutions must assess their technical competence for the metaverse, create trials to assist their workers in comprehending its potential, and then prepare to expand these models swiftly.
A strong payment infrastructure is necessary for businesses and consumers to transact in the metaverse. As a result, banks must deploy cutting-edge technology to create this infrastructure, which will fuel metaverse’s economy. The virtual world’s reputation will rely heavily on advanced security, including all payments. Many banking firms in the immersive virtual world are offering wallet functionality with two-factor authentication, with an extra layer of security to ensure the safety of all online transactions and contactless payments. Blockchain technology, cryptocurrencies, and smart contracts form the foundation of the metaverse ecosystem’s decentralized payment network. For example, a decentralized payment network allows customers, suppliers, and users to trade money without depending on third parties to ensure security and performance.
Transactions in metaverse:
There are virtual systems and apps in the metaverse for how customers handle their transactions. Payment for goods or services in this virtual universe is made via purchasing in-app money, which can then be traded for in-app products. For example, by linking your digital wallet to your bank account, you may make in-store or online purchases with ease. Blockchain, cryptocurrency, and digital wallets are all part of the metaverse’s payments. Various digital payment mediums can be secured by blockchain technology to facilitate peer-to-peer payments in the metaverse.
Blockchain technology delivers immediate payment confirmation while providing high-quality transaction security and is quickly adopted and expanded by the majority. Thanks to its instantaneous nature, it also allows quick settlement of digital assets purchased in the metaverse. As a result, digital assets, for example, NFTs, cryptocurrency, and any other future digital assets in the metaverse, can be promoted, exchanged, purchased and sold. Payments could be accepted via blockchain-based payment wallets, making the process safe and instant.
The banking sector is on the verge of a new era of digital disruption. As technology advances, we may expect a transformative shift to a new digital world powered by VR / AR banking experiences. The metaverse can significantly impact the banking sector, enhancing how banks work with customers, develop new products, and enable services. As the financial industry evolves, identifying the aspects and creating unique consumer experiences while preventing fraud and resolving privacy issues will be critical. Nevertheless, the metaverse can both benefit customers and banks if adequately implemented.