Should your finance brand move into the metaverse?
The metaverse may seem like something you’d find in the Matrix, but it seems like it’s here to stay. The introduction of virtual reality and other associated emerging technologies will change the financial marketing content arena. How your finance brand adapts will either give you a competitive edge or you’ll be one step behind. Here we break down what finance brands are doing in the metaverse and if you should too.
Breaking down the metaverse
The metaverse is the next stage in Mark Zuckerberg’s social media empire. Rather than interacting online with friends and family via social media, this new virtual reality is a place where you can create a digital ‘second life’.
While this may seem like futuristic technology, it’s actually the here and now. Even though this virtual reality space hasn’t quite yet reached the ‘second life’ level as you may see in the Matrix, around 74% of adults will join or consider joining the metaverse in the future (if you want to find out more about what the metaverse is, we wrote an article explaining it).
Around 74% of adults will join or consider joining the metaverse in the future.
According to Oliver Wyman Partner, Lucia Uribe, “If you have an end consumer who’s gaming or exploring the metaverse, they come across you there and it reinforces that brand relationship.” She continues, “I think it’s potentially a massive growth opportunity for financial services players.”
Despite this virtual reality being still in the beginning stages, finance brands, and brands in general, have already started setting up shop and utilising it in several different ways.
What three finance brands are doing in the metaverse
Finance brands have already begun adapting to the metaverse in unique and interesting ways. The metaverse isn’t as simple as creating a social media strategy. This is because there are so many different ways your finance brand can show up and produce content for it. Finding the right type of content and marketing strategy for the metaverse will be unique to you and your finance brand’s goals.
1. JP Morgan Chase created a virtual bank inside the metaverse
Called Onyx, this is the first Blockchain bank ever created. This virtual lounge can be found in Decentraland within the metaverse. According to Yahoo Finance, Decentraland has a monthly active user base of 300,000 people and 18,000 daily users, meaning it’s a great place for JP Morgan Chase to reach a wide audience.
When entering the virtual bank you can click and watch a demo video of how payments could be made in a virtual space using smart contracts as well as a history of the bank’s blockchain projects.
2. Zelf is bridging the gap between virtual reality and the real world
Zelf Bank, known as the bank of the metaverse, saw how people adapted and leaned into digital financial management after the events of the pandemic. Zelf is building an embedded banking system that will enable users to exchange value in the virtual world and transfer it into the real world in conjunction with a bank account.
3. HSBC purchases land in The Sandbox
In the metaverse, The Sandbox is an area typically used to host events or competitions. The Sandbox has been downloaded 40 million times and has 1.2 million monthly active users, typically comprising gamers and esports enthusiasts.
HSBC has purchased land in this area and is planning to use it to connect with users by providing educational, inclusive and accessible experiences for users.
Is virtual reality for you?
Joining the metaverse won’t be something that every finance brand does or needs to do. The positive about joining the metaverse is that a presence in this space can help your finance brand attract younger consumers, and also help lead you to be at the forefront of new products and financial management services. Additionally, building a presence can help reinforce your brand and build both brand awareness and credibility.
However, if the metaverse doesn’t align with your finance brand’s goals it may be worth sitting back and waiting to see how the metaverse expands in the future. It’s currently such new technology it’s difficult to say how critical a part it will play in not only financial services but people’s lives.