Applications of Virtual Reality in Finance: Showcasing Ten Practical Implementations
In the rapidly evolving world of finance, virtual reality (VR) is making a significant impact, revolutionising the way financial institutions operate and interact with their clients.
Currently, VR is being utilised to create immersive environments for client engagement, allowing customers to interact with financial products or advisors in a virtual space beyond traditional screens. This can include virtual bank branches or investment advisory sessions. One such example is Fidelity Labs, the innovation arm of Fidelity Investments, which has developed a VR prototype that allows customers to view their portfolio in a 3D environment.
Moreover, VR is being used to train employees in complex situations such as high-stress trading scenarios or fraud detection exercises, improving decision-making without real-world risks. Financial institutions also use VR to visualise complex financial data more intuitively, helping both advisors and clients better understand market trends and risks.
Looking ahead, the future of VR in financial services is promising. The integration of VR with AI-driven applications could create highly interactive and smart virtual assistants inside immersive environments. For instance, VR could facilitate financial services within virtual worlds, such as managing virtual assets, digital currencies, and NFTs using VR interfaces linked to real-world financial systems.
VR simulations might also be used for cybersecurity training and fraud detection drills, enhancing preparedness against increasingly sophisticated cyber threats. Banks and wealth managers could use VR to offer richer, more engaging client experiences, including real-time collaboration in portfolio management or financial planning in a shared virtual space.
While there are challenges and considerations that financial institutions need to address before implementing VR technology, the potential benefits make it an exciting prospect for the future of finance. Companies like D6 VR, Talespin, and INTRUST Bank are leading the way in integrating VR into financial services.
Mastercard has launched a VR-based payment system that allows customers to make payments in a virtual environment, aiming to enhance the security of online payments and reduce fraud. BNP Paribas has introduced a VR app that allows retail banking users to access their account activity and transaction records in a VR environment.
VR technology can be used to verify the identity of individuals during financial transactions, making it a reliable and secure technology for financial transactions. Voice recognition technology has been integrated into VR for enhanced accessibility for users with disabilities.
In conclusion, the current use of VR in financial services revolves around client engagement, training, and data visualization, while its future lies in AI integration, metaverse finance, and immersive, interactive financial ecosystems. This evolution enhances convenience, security, and personalization in financial service delivery. The potential for VR to revolutionise the finance industry is immense, providing new opportunities for innovation and growth.
In the context of the rapidly evolving finance industry, VR technology is being leveraged not only for immersive client engagement, such as virtual bank branches and investment advisory sessions, but also for employee training in complex scenarios, and for visualizing complex financial data intuitively. Furthermore, the future of VR in finance seems promising, with possibilities of AI integration, facilitation of financial services within virtual worlds, and VR being used for cybersecurity training and fraud detection drills.
