AR & VR in Finance: How They are Empowering Finance Teams
Summary
This article provides a brief overview of what AR and VR are, how they are supporting teams, and what the future of AR and VR looks like.
Augmented Reality (AR) and Virtual Reality (VR) are not new concepts. Their impressive applications in the entertainment, real estate, retail, and education industries have made them popular. But not much is said about what AR & VR in finance has achieved. And it is quite intriguing.
These technologies have led to a paradigm shift for finance teams in multiple ways by creating advanced tools for various processes like data visualization, risk assessments, market analysis, etc.
In this article, we’ll get into the details of how the integration of AR and VR enhances the capabilities of finance teams across the globe.
Here’s an interesting fact before we dive in. The global market for extended reality (AR, VR, and mixed reality) is set to be valued at USD 100 billion by 2026!
Table of Contents:
- What is AR & VR?
- 7 Ways in Which AR & VR in Finance Are Supporting Teams
- What the Future of AR & VR in Finance Looks Like
What is AR & VR?
AR or augmented reality uses digital information (visual, auditory, and other sensory information) and overlays that into the real world to enhance user experience. VR or virtual reality creates a simulated, artificial 3D experience where users can interact with that virtual surrounding.
The main difference between the two is AR uses the real-world environment, whereas VR creates a virtual one. With our fundamentals clear, let’s understand how these two technologies have impacted finance teams.
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7 Ways in Which AR & VR in Finance Are Supporting Teams
Augmented reality and virtual reality in finance have been making teams efficient, productive, and more equipped to deal with the challenges of today and the opportunities of tomorrow. Here’s how:
1. State-of-the-Art Payment Systems
Approving transactions, enforcing authentication, and dealing with disputes are just many of the challenges finance teams face while dealing with conventional payment systems. AR & VR in finance not only reduces payment trails even further but it also optimizes each stage of the process.
With VR-backed payment systems, where customers can make payments without exiting the virtual world (think, metaverse), financial services are taking leaps and bounds.
For example, Mastercard partnered with Qualcomm Technologies and Osterhout Design Group (ODG) to allow customers to log in and pay using an iris scan.
2. Automated, High-End Security
With the threat of cybersecurity issues, financial teams are also better equipped with measures to protect customer privacy, along with the security of organizational assets like sensitive financial data.
For example, AR can enforce biometrics for identity verification that can then connect to a VR world to prevent unauthorized access. These technologies can also simulate various breach scenarios to expose vulnerabilities and risks.
AR can also aid in meeting the Payment Card Industry Data Security Standard (PCI DSS) by protecting sensitive information for data security, regulating access, conducting security audits, maintaining a secure network, etc.
3. Almost-Real, Improved Remote Collaboration
With the finance world changing rapidly due to the increase in Fintech companies, global teams are the new norm.
Virtual reality in finance can help set up collaborative workspaces. These spaces will hold meetings that can be like the real world and, in real-time, can improve engagement among teams.
It can also facilitate better communication, replicating a face-to-face scenario. Another research states that compared to other mediums, VR can facilitate better communication.
4. Smarter Data Visualization
Traditional bars, graphs, and other data visualizations lag when compared to AR and VR-backed ones.
The latter makes it easier to analyze data that can be relayed into a physical space, offering a broader perspective as they increase their field of view. Risk assessment is also optimized.
When large chunks of data need to be studied to make crucial decisions, a 3D environment makes it much more efficient and immersive. Fidelity Investments, for example, has created a ‘StockCity’ where traders and investors can look at stock portfolios in a 3D format.
Such data rooms can also be collaborative, where teams can negotiate, trade, and deduce.
5. Additional Support for Customer Service
Augmented reality in finance can make services more streamlined for customers, decreasing the dependency on calls, emails, and other forms of customer support.
Customer onboarding becomes efficient, too, with the increased ease of opening accounts and documentation, leading to more results in fewer efforts for finance teams.
Investor and portfolio management teams can also offer virtual tours of high-net-worth properties for their clients to make more informed investment choices.
For example, the National Bank of Oman uses an AR app, which makes it a breeze for customers to find the nearest ATM the best offers in a mall or on any street in Oman. VR & AR in finance can also provide financial education to customers in an interactive way.
6. Intelligent Simulation and Better Training
According to research, VR platforms offer higher subsequent knowledge retention.
Similarly, for upskilling and training, finance teams can use AR & VR for scenario-based and gamified learning. This can increase retention and make complex financial concepts easy to understand.
AR & VR can also simulate trades to minimize risk before performing those transactions in the real world, which is especially useful in portfolio management.
7. Targeted Customer Acquisition
A study found that for Gen Y and Gen Z, perceived ease of use, curiosity, social influence, and product features are some of the most important things to look for in digital banking, found a study.
This calls for augmented reality in banking, which helps in meeting the needs of future customers. The millennials and future generations, also prospective customers, have grown up in a tech-heavy world and are more likely to expect the same from the finance sector.
The finance industry is at a high risk if it doesn’t keep up due to this disruption. AR & VR in finance can help the teams keep the industry relevant and acquire more customers by enhancing the ease of use, user experience, and efficiency.
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What the Future of AR & VR in Finance Looks Like
AR & VR will no longer be oomph-worthy technologies in a few years. They will become mainstream and soon the norm, especially when you think of AR & VR in banking.
As of 2022, a study found that only 29% of all consumers aren’t likely to access the metaverse, but 49% of the millennials and 35% of Gen Zs say they are likely to. Without virtual reality in banking and augmented reality support, the finance industry would find it tough to keep up with the metaverse.
This is one of the reasons why, along with changing with the times, the most significant thing to do would be to create eLearning courses designed around AR & VR for your finance teams so they are familiar with the technology.
At Hurix Digital, we can curate customized eLearning and training solutions for you and provide business simulations for learning. We can also offer top-notch learning technology services to suit your needs.
Get in touch with us now to upskill, upgrade, and elevate today!
Performance, Results, Growth, and Life-Long Learning define my professional life. I am passionate about making workplace learning planful, purposeful, and impactful. I take pride in partnering with clients and bringing them the best in learning design and creating solutions that address business challenges.