How are VR and AR technologies changing the Banking and Fintech industry?

The widespread instilment of high technologies, such as Machine Learning, AI, and, of course, VR and AR, no longer surprises anyone. Nevertheless, even today one can find quite a common opinion among people not connected with the industry, that technologies such as Virtual and Augmented Reality serve primarily to move the horizons in the entertainment industry. It is far from the truth. VR and AR solutions are already actively used in the most serious industries, such as healthcare, and regarding our today's topic - banking and fintech.

The fintech industry has never given the impression of a segment that is developing slowly and is not willing to employ new decisions in the digitalization process. Rather, on the contrary, such an industry that is directly related to finance and where a lot of money can be found attracts technical specialists in order to optimize or speed up processes, as well as bring the service to a new level. Therefore, it is not surprising that VR and AR technologies are already actively used in the fintech and banking industries. Let's try to figure out exactly how this happens.

Data exchange and visualization

Financial traders and other people involved in trading in the fintech and banking industries always deal with huge amounts of data that need to be processed quickly and correctly in order to perform successful deals. The introduction of Augmented Reality solutions makes this process more demonstrative and simpler. It also helps to simplify the process of sharing and organizing data.

As a reliable indicator of the prospects of this direction, one can imagine the Citibank case. The company decided to integrate AR technology into its system, but unlike many of its competitors, it focused not on its customers, but on representatives of the trading segment. Thanks to the integration with Microsoft HoloLens, the company managed to achieve the full functionality of the idea. The result was a product that allowed traders to view 3D stock charts on exchanges in real-time, which simplified the trading process and made it possible to make more accurate predictions. An equally important feature was the ability to control and exchange data using voice commands, which significantly accelerated the process and quality of trading.

This case shows the great perspective that augmented reality technology has in the fintech segment. Convenient visualization and data exchange are the factors that will invariably attract new investments and new fans.

AR & VR-powered banking transfers

Bank transfers and online payments enhanced by the AR or VR effect are some of the most impressive directions in the issue we are considering. Of course, the pandemic and the subsequent lockdown had a serious effect. After staying at home, people still wanted to shop, and VR solutions, such as creating a space in which a person can return to their favorite restaurant and pay without contact, showed positive dynamics. Contactless payment has grown in popularity before and has already overtaken cash payments. After a pandemic, this process will only accelerate and become irreversible.

Thanks to AR solutions in this segment, it becomes possible to view the AR-sequence of dishes in a restaurant before making your choice and transferring a payment. Moreover, it is possible to do this without leaving your home!

Exchange of information within financial corporations

Employees of banks and other financial institutions must constantly be aware of any changes in the market, company policies, or any other legal issues. For this, financial institutions constantly organize all-hands meetings, where they inform their employees about any news and changes. This process can be made much easier and more entertaining with the help of AR and VR solutions. For example, some banks have already successfully developed AR solutions in the form of mobile applications for their employees only. As a result, the information necessary for the employees was conveyed not at a boring meeting, but with the help of "live" assistants who reported all the latest news. In addition, such AR applications retained the ability to store a huge amount of data in order to answer any questions. For example, Desjardins Bank of Canada used an AR-powered mobile solution to inform its employees about any details related to retirement. At the same time, each of the employees received personal unique information and could use help regardless of the career length.

Another good case confirming the prospects of this direction is the AR solution from BNP Paribas Group. The bank used the AR-powered solution to inform its employees about the details of work in the bank and the general information about the institution. So, any employee can receive interactive information about the bank's policy and the services it provides using a camera on his phone.

These cases confirm the fact that the scope of application of AR or VR technologies in the fintech industry is limited only by human imagination. Sharing information on the rules of working in a bank using AR-powered solutions? Why not!

Customer needs

Of course, we can no longer postpone this moment, it's time to talk about customers’ needs. As in any other industry, the needs and interests of clients are always top priorities for companies, including fintech and banking institutions. Therefore, in the matter of introducing VR and AR solutions, the most promising direction is the one about improving customer satisfaction.

As a good example of using AR-power solutions in the fintech industry, we can recall Capital One Bank's decision regarding car mortgages. So, thanks to a special application from the bank and smartphone’s camera, customers could view the details of the car, its cost, mortgage rate, and interest right in the car dealership, calculate the total cost and decide whether to go for this mortgage. You can imagine how convenient it is when all the information you need appears on the screen of your smartphone when you need it, saving you from unnecessary communication with consultants.

Another similar solution is a mobile application from an Australian bank, which works on a similar principle, only we are talking about a home mortgage. In the same way, as in the previous example, customers from all over the country can view all information about the house in the application and even take a virtual tour of the rooms. Arriving at a place offline, you can point the camera at various places in the house and the smartphone will give you additional information.

Bottom Line

The future of technologies such as AR or VR in the fintech and banking industries is cloudless. As we said earlier, the range of application of such high technologies is limited only by technical (temporary) capabilities and the imagination of the creators. Therefore, in the coming years, we will see a large number of new AR and VR solutions in the fintech and banking industry, which is exciting.