Towards an understanding of metaverse banking: a conceptual paper

Abstract

Purpose This study aims to synthesize the current literature and present a definition of future smart banking services known as “metaverse banking” as well as to discuss its future potential. Design/methodology/approach This paper proposes a suitable definition for metaverse banking that includes the important elements of metaverse banking and sheds light on its impending potential from distinct aspects. Findings Metaverse banking is a banking channel actualized through the integration of metaverse and online banking services, enabled by a mix of numerous advanced technologies, that provides customers with synchronous banking services accompanied with 3D experiences in a virtual world. There is a high likelihood in the future that metaverse banking is able to be marketed intensively yet effectively, and incur progressive demands, as well as progress significantly in terms of development. Practical implications This study assists bank managers in understanding metaverse banking better and simultaneously makes them realize the metaverse banking’ growth opportunity which can be pursued. Originality/value To the best of the authors’ knowledge, this is the first paper to establish a definition for metaverse banking and expound on the upcoming potential of metaverse banking. There is a lack of related literature because this concept is relatively new. This study assists in enriching the concept and providing future research directions.

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“…Hence, banks must see these benefits as an opportunity to become the potential avenue that empowers digital banking and online commerce. Given the metaverse's potential, it was reported that several major banks around the world had incorporated such innovation into their offerings (Zainurin et al. , 2023).…”

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“…The metaverse can incorporate decentralized finance platforms, which operate on blockchain technology. This will enable peer-to-peer lending, borrowing and investment opportunities, allowing users to access financial services without relying on traditional banks (Zainurin et al , 2023).…”