Abstract
This chapter examines the potential of metaverse technology to transform the banking industry and promote financial inclusion. It provides an overview of the historical development of metaverse and its potential impact on the banking industry while identifying key opportunities to improve access to financial services, financial education, and customer engagement, as well as potential risks such as exacerbating inequalities and privacy concerns. The chapter also considers the ethical and societal implications of metaverse technology, emphasizing the importance of corporate social responsibility and stakeholder theory for responsible implementation. In conclusion, this chapter offers a comprehensive analysis of the opportunities and risks of metaverse technology for financial inclusion in the banking industry and highlights the need for responsible development and governance as well as stakeholder participation.
TopThe rise of metaverse technology has created new opportunities and challenges for various industries, including the banking industry. Metaverse refers to a virtual shared space where users can interact with each other and digital objects in a seemingly real environment. This technology has been developing for several decades, and its potential to transform various aspects of our lives is becoming more apparent. In this chapter, the authors will explore the historical development of metaverse technology and its potential to transform the banking industry. Specifically, the authors will examine the role of metaverse in promoting financial inclusion and the opportunities and risks associated with its use.
Key Terms in this Chapter
Virtual Reality: A computer-generated simulation of a three-dimensional environment that can be interacted with in a seemingly real or physical way using special equipment such as a headset.
Artificial Intelligence: A branch of computer science that focuses on the creation of intelligent machines that can perform tasks that typically require human intelligence, such as speech recognition, decision-making, and language translation.
Augmented Reality: A technology that overlays digital information or graphics onto the real world in real-time, often using a smartphone or other device.
Banking Industry: The collection of businesses and organizations that provide financial services, such as deposit-taking, lending, investment, and payment services.
Financial Inclusion: The process of ensuring that individuals and businesses, particularly those who are underserved or excluded from the traditional financial system, have access to affordable and appropriate financial products and services such as credit, savings, insurance, and payments.
Metaverse: A virtual space or world that merges physical and virtual reality, allowing users to interact in real-time and in an immersive way.
Blockchain Technology: A decentralized and distributed digital ledger that records transactions in a secure and transparent manner, making it difficult to modify or tamper with the data once it has been recorded.
Virtual Banking: A form of banking that primarily operates online or through digital channels, with little or no physical presence. It may also refer to a bank that does not have any physical branches or locations.