Immersive technology is a game-changer for the financial service industry. Even traditional financial institutions are adopting emerging solutions to stay relevant. From improving financial literacy and employee training efficiency to enhancing customer support, immersive tech offers a range of benefits to those who implement it.
Here, we’re going to delve into the use cases and opportunities of immersive tech in the financial services industry.
Bringing Immersive Technology to Financial Services
Immersive technology has two main categories with varying levels of immersive experiences – virtual reality and augmented reality.
VR offers full immersion by cutting out the physical world, while AR offers partial immersion by overlaying virtual elements in a real-world setting.
Virtual Reality
VR can improve data visualization, which enables financial experts to communicate analytics insights to consumers without overwhelming them. The immersive nature of VR makes it an excellent tool for data storytelling and information visualization.
Everything from potential real estate properties to lifestyle changes can be visualized and turned into 3D simulations. Users can be at the center of these virtual simulations. They can grasp the information faster and retain it longer. By making subtle changes to the variables, they can visualize the potential outcomes and understand the impact.
Furthermore, VR can aid in employee training. For example, Bank of America partnered with a startup called Strivr to provide VR training to 4,300 financial centers. They use a series of learning modules, which have about 20 VR simulations, to teach different skill sets. They teach employees how to navigate difficult conversations and build stronger relationships with clients, among other skills.
Augmented Reality
Since AR solutions connect the digital world to the physical world, it is widely seen as a more relevant solution than VR. One of the most common applications of AR in the banking industry is navigation. For instance, the National Bank of Oman (NBO) uses an AR app to help its patrons find the nearest ATMs and branches. It can also help them find the best offers and deals when they enter a mall.
Like VR, AR can also change the way users visualize and access data. Instead of placing users at the center of 3D simulations, AR can overlay the financial information in a real-world setting. For instance, users can hover their wearables or mobile devices over a spreadsheet. Then, graphic representations of their data will come to life before them.
The Challenges of Adopting Immersive Technology
Immersive technology has made incredible advances in the financial services industry in the past few years, with benefits ranging from employee training to data visualization. However, its adoption has been quite slow due to a variety of challenges.
One of the biggest challenges has to do with the technical expertise required to implement them. Another is cost. Creating and implementing an immersive solution requires a lot of time, effort, and money. The same can be said about maintaining and upgrading the tech.
While large financial institutions like Bank of America and NBO can make huge investments in AR and VR, other smaller institutions might not be able to do the same.
On the bright side, immersive technology is still evolving. There is a future for VR, AR, and other immersive solutions in the financial services industry. The more accessible and affordable the tech becomes, the more widespread it gets.
