Financial Industry

The Benefits of Virtual Reality in Banking

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What comes to mind when you think of virtual reality? Perhaps it wanders to highly visible applications in gaming, film, art, and retail. But with VR poised to be disruptive, most, if not all, industries will be reshaped by it. That includes banking. The immersive nature of virtual reality makes the often dull world of finance more compelling for people.

“How?” you might ask.

In this guide, we’ll cover existing and emerging VR applications in banking. We’ll also delve into its many advantages.

Why the Finance Industry Needs Virtual Reality

Banks can use virtual reality to present their services in a new light. They can use it to present something that consumers usually find uninteresting. For instance, bank regulations and policies. Immersive learning environments provide visual and tactile stimuli. These elements make VR far more engaging than a pamphlet or brochure. Moreover, virtual reality simplifies finance solutions for consumers. It makes complex products and services easier to understand.

VR makes it easier for banks to educate their clients on financial management. For example, it can be used to teach young adults about financial responsibility. It also helps older adults understand their savings or investments. In doing so, it empowers them to make better financial decisions.

Consumption habits are changing. That’s because Millennials and Generation Z are becoming larger consumer segments. Many from their generation seek user-friendly, paperless banking methods. By investing in VR, banks can deliver personalized and seamless services online.

Today, we’re seeing more of digital and mobile banks. Although virtual banks aren’t as popular yet, we should see more of them in the future. Using virtual reality, banks can perform services you would get in a physical location. While it is more convenient, it’s also more cost-effective. Without physical locations, banks can reduce operational costs.

Virtual Reality Applications in the Financial Industry

VR might still be in its early stages, but its applications in banking abound. Saatchi & Saatchi Sri Lanka, for example, made a virtual reality campaign for Hatton National Bank in 2015. They called it New World Banking. Oculus Rift powered the virtual experience. It let consumers discover Hatton’s banking solutions in a fun and engaging way.

High-resolution imagery and low-latency head-tracking brought people into a virtual environment. Additionally, a leap motion 3D controller enabled them to interact with it.

Source: Widiba

Milan-based bank Widiba is one of many institutions that have embraced VR. They used Artificial Solutions’ Teneo platform to create a virtual banking system. Using VR glasses and the Widiba app, account holders can go around the virtual bank. They can even interact with monitors or agents. In the virtual environment, they can check their balances and transactions. They can perform banking operations that they would usually get at a physical location.

Consumers can use their own words to ask questions. Teneo interprets the intention behind the query before delivering the desired outcome. It can also respond to the conversation like a human teller.

Investing in Virtual Reality

VR is a young, emerging technology. But investing in it now can give you a leg up on the competition. Virtual reality can provide consumers with a holistic view of their finances. It can deliver seamless banking experiences. It makes banks stand out from the competition. Furthermore, it keeps the next generation of banking consumers satisfied. Simply put, it is invaluable to banking.

 

Gergana Mileva

Based in Prague, CZ, Geri is a freelance journalist and writer, focusing on technology, finance, and marketing. If you have a story suggestion for Geri, you may contact her here.

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