Transformed Interactions: 10 Real-World Applications of AR Revolutionizing Consumer Banking and Financial Services
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The world of banking and finance is undergoing a digital revolution, with augmented reality (AR) and virtual reality (VR) technologies playing a significant role. These innovative technologies are enhancing customer experiences, improving risk management, and enabling interactive solutions.
One of the most noticeable trends is the use of AR for visualizing financial data and trends in immersive ways. This supports more accurate risk assessment and predictive analytics, thanks to its integration with artificial intelligence (AI). Financial institutions can now offer personalized financial advice based on real-time market conditions and individual customer profiles.
The convergence of AR and VR into mixed reality is expected to create hyperpersonal experiences. Adoption of wearable AR devices, such as smart glasses, enables users to receive financial information, notifications, and perform transactions through gesture-based interfaces seamlessly in everyday environments.
Virtual financial advisors and trading platforms are another key development. VR is enabling immersive consultations with virtual advisors, enhancing client engagement. AR-based trading platforms overlay live market data on physical environments, providing innovative interaction methods.
While transactional VR/AR is still emerging, financial institution leaders show growing optimism. By 2030, 34% expect VR/AR transactions to be commonplace, and 87% anticipate that at least 20% of consumers will use VR/AR for financial transactions within the coming decades. Early adopters are experimenting with these technologies, but widespread transactional use is predicted beyond 2030.
Integration with NFT and DeFi ecosystems is another exciting development. Although more aligned with blockchain finance, VR/AR technologies are involved in platforms supporting NFT-backed loans and decentralized finance (DeFi) applications, adding experiential layers to financial products and services.
However, implementing these technologies comes with challenges. Ensuring accuracy, security, and usability in real financial environments is crucial. Compliance with all data protection regulations is essential to safeguard customer information and build trust.
Notable examples of AR in finance include Axis Bank in India, which uses iris scan for Aadhaar-based transactions, and Fidelity Investments, which launched StockCity, a tool that displays a user's stock profile as a vertically sprawling metropolis in VR. Desjardins Bank offers an integrated AR platform with a virtual assistant named Penny for financial education, planning, and investment. Mastercard has launched an AR app that allows users to see, explore, and access the benefits of its products in a photo-realistic AR environment.
The global AR market in banking and financial services is expected to reach a valuation of $597.54 billion by 2030, amounting to a compound annual growth rate (CAGR) of 39.8% by the end of 2030, according to a report by Grand View Research.
In conclusion, the future of AR in financial services looks promising. Mixed reality technology is merging the real and virtual worlds to create personalized experiences. Early use cases emphasize visualization, advisory, and interaction improvements, while consumer transactional use of VR/AR remains a longer-term expectation. As these technologies continue to evolve, we can expect to see even more innovative applications in the banking and finance industry.
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Machine learning and artificial intelligence (AI) are integral to the development of AR and VR financial applications, as they enable accurate risk assessment, predictive analytics, and personalized financial advice.
In the realm of mobile app development, the integration of AR and VR technologies with finance is anticipated to foster the emergence of gesture-based interfaces, virtual financial advisors, and AR-based trading platforms, transforming traditional banking and enhancing user engagement.
