Generative AI

Leveraging generative AI in the metaverse of banking & financial services

The metaverse is poised to become the next big thing after the internet. Enabling life like 3D experiences by leveraging technology such as virtual reality (VR), augmented reality (AR), the internet and generative artificial intelligence (Gen AI), the metaverse is expected to bring in a huge transformation to both the business and personal world. Rather than being just a virtual escape from reality such as in a game like Fortnite, the metaverse is going to augment the real world. Businesses are expected to derive great benefits that would enable fantastic customer experiences and personalised services. In fact, a McKinsey study found that the metaverse can potentially reach a value of five trillion dollars by 2030.

There are several reasons that the metaverse is here to stay. Rapid technological advances such as the availability of 5G and Gen AI, declining costs of AR and VR headsets, the growth and comfort of online commerce, and the comfort of Gen Z with a digital or hybrid platform are just some of the reasons that the metaverse going to be way more than just a fad. Businesses across industries are beginning to leverage the metaverse for sales and marketing, advertising, and online transactions. The exponential growth of Gen AI has only added to the possibilities. Enterprises are unlocking the potential of the metaverse and generative AI to transform customer experience and engagement, provide personalised services and add innovative products.

While the banking, financial services and insurance sector (BFSI) was slow on the uptake to digitalisation due to legacy applications and compliance regulations, several of these issues are being addressed as incumbent banks leap forward with digitalisation to meet high customer expectations, stay competitive with new-age fintechs and explore new revenue streams. The metaverse thus presents huge opportunities for these institutions.

A new chip off the old block

About 47 per cent of bankers believe that 20 per cent of their customers will use VR and AR for daily financial transactions, by 2030. The metaverse in financial services can lead to a complete transformation of the industry. Let’s see how.

Immersive virtual banking: Imagine a bank branch where you can walk in and complete your transactions, talk to an executive, discuss investment plans and walk out, all from the comfort of your home. With the metaverse and gen AI, a complete virtual banking experience such as this is completely possible. Customers can be completely immersed and conduct all transactions seamlessly. The use of AI in the banking and finance industry presents great opportunities. Apart from saving on real estate costs,  banks can also offer highly engaging and personalised services to their customers. For instance, customers can review a graphical or pictorial representation of their spending habits while at the branch, “meet” with AI chatbots to discuss financial plans and even make investment decisions.

New revenue opportunities: With ever-evolving technology and stiff competition from lean and agile customers, banks need to innovate with new products and services to retain customers and stay in the game. Neo-banks are already offering hyper-personalised products and services with AI. For banks to stay relevant and take advantage of an up-to-now loyal customer base, they up the anté with innovative and personalised products and services. For instance, by leveraging Gen AI algorithms and the metaverse, banks can offer dynamic investment advisory services by continuously monitoring market conditions, while taking into account complex financial indicators and customer preferences such as risk tolerance to generate hyper-personalised financial plans for customers who can then make data-driven decisions that are tailored just for them. AI-powered financial advisors within the metaverse can engage with customers 24x7, answering queries, and creating financial plans. These bots offer the advantage of answering queries for customers worldwide, at a time convenient to them. Such personalised service builds customer loyalty and trust further, and customers feel involved and secure with their investment.

Hyper-personalised services:  The convergence of AI and the metaverse creates breakthrough opportunities for the application of data-driven analytics. When the customer interacts with the bank in the metaverse, the bank can derive a deep understanding of customer preferences, needs and goals. With Gen AI technology, this information can be analysed to identify patterns in real-time, and accordingly “talk” to the customer. Banking customers can attend webinars and workshops within the metaverse, with content created or curated by Gen AI applications, based on their interests, needs and level of knowledge. A gamut of banking and financial services such as credit cards, loans, account services, customer acquisitions and back-office operations such as payments processing, customer support etc. are typically outsourced to Business Process Outsourcing (BPO) providers.  GenAI can transform BPO banking services by alleviating the workloads for human agents, helping them access relevant information in real-time, and address issues more efficiently. In the metaverse, BPO banking can become a hyper personalised experience with customers interacting with human agents or bots that are powered by an awareness of customer preferences and previous transactions at real-time.

The metaverse and Gen AI offer banks a way to reimagine customer experience while delivering operational efficiency. In a dynamic digital world, leveraging these technologies will let banking and financial services institutions redefine their future, and stay ahead of the curve.

How can Infosys BPM help?

Infosys BPM’s financial services offerings include solutions for enterprises seeking to transform and thrive in a rapidly changing ecosystem. We assist organisations in creating breakthrough digital solutions to transform their operating models, improve business performance, and standardise processes with reduced costs.

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