Artificial intelligence (AI), augmented reality (AR), virtual reality (VR), and machine learning (ML) are transforming businesses. Companies operating in the 21st century are adopting such for various reasons.
Some of the major reasons would be higher efficiency. There is also greater reliability in the processes. And, that’s not all; the technologies are beneficial when it comes to better customer service. There is higher personalization and engagement that helps with customer retention.
The financial industry realizes great benefits with the use of such technologies. The modern customer is tech-savvy and knows the benefits of the use of technology. They are more demanding of quick and seamless service from wherever they are.
Gone are the days of lining up in banking halls to get service. Now, the internet and mobile platforms bring convenience at your point of need. Immersive technologies like AR and VR are significant game-changers.
Our article explores how immersive technologies can transform the financial industry today.
Immersive Technologies to Note
First, let’s take a peek into the leading immersive technologies.
- Virtual reality (VR) uses special equipment like VR headsets. Such technologies immerse users into the virtual world. It does this by blocking out the physical world. Imagine exploring the pyramids in Egypt from the comfort of your living room.
- Augmented reality (AR) superimposes virtual elements into the real world. It enhances or augments the experience without total immersion into another world. You may have come across the IKEA AR technology that allows you to design a room using your smartphone. You can pick and place furniture within a virtual room to see how it will look in the end.
- Mixed reality (MR) combines both AR and VR. A good example would be the Microsoft Halolens.
So how can such technologies transform the financial industry?
1. Better Customer Experiences
Providing an excellent customer experience is a key concern for financial institutions. Companies can create apps that respond to a specific customer’s needs. It allows for better service personalization using insights from data.
Information becomes easier to understand with immersive Technologies. When there is less complexity, the institutions can expect better interaction from customers.
Companies like MasterCard are even bringing in gamification for virtual reality payments. They have entered a partnership with Wearality, an Orlando VR glasses designer. Anyone using the VR golf experience can identify goods. They can then buy without exiting the virtual world.
Standard Chartered has the AR Breeze Living mobile application. It provides a social network for sharing offers or coupons on partner platforms. The bank benefits when the customers use the instant payment options.
The immersive app is a powerful marketing tool for the bank. It provides a fantastic way to attract new customers. Their marketers do not need to be aggressive about the targeting.
Deutsche Bank is taking marketing and customer experience to a whole new level. They have a magic mirror in Alexa hall that transports customers to virtual worlds.
You can, for example, interact with a unicorn or play games. It provides a powerful way to ensure audiences remember you for a very long time.
2. Better Efficiency in Processes
The forecast for AR and VR in business operations is very positive. Research shows that 82% of companies realize positive outcomes with immersive technologies. The companies experience higher productivity, efficiency, and better security in their processes.
More established financial companies realize the need to adapt. Fintech startup institutions are giving them a run for their money. Such new businesses have the technical know-how. Such may not exist in the more traditional financial institutions.
The older companies must cater to an audience that needs them to step into the 21st century. Only then can they offer a good experience. The result is better customer engagement with products and services.
3. Remote Working Capabilities
The corona pandemic saw many people adopt remote working. Fintech companies have been at the forefront of innovation. They are using immersive experiences in unique ways.
Citibank, for example, has a holographic workstation. It incorporates Microsoft Halolens to create financial visualizations. You would find the same on a typical trader’s desk. Users get real-time financial records and data through holograms.
It allows traders to track and check stock indices. Such insights provide information that leads to sound financial decisions. Further, sharing and collaboration are easy amongst team members. The trader can opt for voice commands resulting in higher efficiency.
4. Immersive Data Visualization for Financial Institutions
Financial institutions deal with big data every single day. Proper handling of such is critical for the proper running of the organization. Some Fintech companies are using immersive technologies for data visualization and analysis.
Fidelity Investment has StockCity, which is a virtual world for investors and traders. Data analysis is easy with 3D format presentations. It allows for quick analysis and comprehension of the data.
The immersive experience is possible with the use of Oculus Rift VR headsets. Getting insights is easy with some of the elements in the virtual world. A sunny day, for example, means the market condition is good.
The driving force for the company was to appeal to the younger demographic. Such customers have grown up using social media and video games. They would be more accepting of the immersive experiences. It would be hard to achieve the same with having to read white papers.
5. Immersive Experiences for Financial Education
The reality is companies must adapt technologies to continue to remain relevant. But, such can be confusing for customers and employees. The use of immersive technologies is a fantastic solution for financial education.
We have already seen their use in areas like health care. VR is now a go-to solution for medical students. They can perform surgeries or learn about diseases without needing a cadaver.
And now, finance students can navigate 3D presentations of numbers and charts. It helps reduce the complexity of the processes while making learning more fun.
Immersive technologies have and will continue to transform the financial industry. Customers get better experiences with the products and services. There is greater personalization resulting in better engagement.
The institutions are also using the technologies in different areas. These include marketing, data management, and financial education. 21st-century customers are tech-savvy and demand that service providers keep up.
Even the more traditional companies must adopt the use of such technologies. It is the only way to continue to remain relevant. It is, indeed an exciting space to watch as Fintech companies innovate.