The metaverse combines with reality and creates an alternate universe. The availability of technological advances enables us to perform new tasks or efficiently complete ordinary duties. The “metaverse,” or extended reality, opens up fresh opportunities for fascinating telepathy as well as has the potential to simplify routine tasks. As much as these technologies assist us in this work, education, healthcare, consumption, and pleasure, they also pose several challenges. The chapter tackles the questions of why and when customers will accept an entirely integrated area for a variety of operations, such as buying things and making purchases of Banking services. Examining the potential of Metaverse banking, this study looks into interesting avenues for future development that will influence how financial environments change in virtual spaces. The research anticipates a financial transformation with a focus on Blockchain, virtual assets, smart contracts, decentralized finance (DeFi), and immersive technology.
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Blockchain, artificial intelligence, and virtual reality are some of the cutting-edge technologies that have been used to construct the intricate virtual environment known as the banking and insurance metaverse. By giving people and companies realistic and engaging experiences, it seeks to streamline relationships and business processes within the banking and finance industries (Bandara et al., 2022). Through VR spectacles, consumers can communicate with simulated possessions and other individuals in worlds of virtual reality through personas. ((1) Exploring the Potential Impact and Concerns of Metaverse in the Financial Services Industry | LinkedIn, n.d.)While it's no longer the information technology community's term of choice, the banking sector is starting to take notice of the metaverse (Taylor et al., 2020). Metaverse apps present institutions with distinct chances to cultivate connections with a rising, technologically native clientele that has long supported finance technology, given that the people who use them and their viewership are youthful, proficient in technology, and just starting in adulthood (Cho et al., 2023). To hire people in the future, banks must have access to this potential resource. An all-encompassing, blockchain-powered virtual environment that provides novel social and cultural encounters is known as the dimension of the metaverse. (Hasanova et al., 2019) It opens up a whole new world of communication possibilities by encapsulating decentralized and comprehensive interactions that frequently incorporate virtual reality (VR) and augmented reality (AR). Customers may utilize just one, transferable identification across metaverse applications, and the realm of the metaverse is not defined by a particular business or program. Through the use of illusions and characters, consumers can engage in genuine interactions with both simulated and real-world environments through the realm of metaphysics, which may expand what is real through both virtual and augmented reality. The parallel universe works in tandem with reality to do tasks that would be difficult to complete in the world of reality, like exploring remote areas, offering mental health services, and training members for warfare. Because the metaverse is home to a plethora of complicated and advanced capabilities, such as explicit material, 3D layout, and exciting sensory experiences, visitors could view unwanted and privacy-invading materials as more bothersome and will probably suffer more adverse effects (Kumar et al., 2024). Privacy breaches in the realm of possibility therefore probably carry a greater risk of dire consequences, a phenomenon known as an amplified technical impact. Although the metaverse can drastically change how people interact, socialize, and spend time, it also allows room for the darker sides of human beings, just like any technological advancement that opens up opportunities(Dwivedi et al., 2022). Metaverse Banking 2.0 signifies the next iteration of digital banking, where traditional financial services seamlessly integrate into virtual environments. It goes beyond simple online transactions, offering users immersive, 3D experiences where they can interact with financial services and products in real time. This evolution is fueled by advancements in virtual reality (VR), augmented reality (AR), blockchain technology, and artificial intelligence (AI). Figure 1 below shows the covered Metaverse systems by various authors earlier.