Metaverse in Banking - Thematic Intelligence
Summary
The metaverse is a virtual world where users share experiences and interact in real-time within simulated scenarios. The metaverse brings together a range of next-generation technologies, including cloud computing, artificial intelligence, blockchain, cryptocurrencies, augmented reality, virtual reality, and digital twins. While still largely conceptual, the metaverse could transform how we work, shop, communicate, and consume content. GlobalData predicts that the metaverse will grow from around $36 billion in 2020 to $627 billion in revenue by 2030, at a compound annual growth rate (CAGR) of 33% over 2020-30.
This thematic report takes an in-depth look at the impact of the metaverse in the banking industry. It identifies major challenges faced by banks and how the metaverse can help address them. Key players in the space are highlighted, including case study examples of metaverse implementations within the industry. An impact assessment details the areas of the metaverse where banking companies should focus their investments, while the data analysis section provides market size and growth forecasts.
Scope
- One of the biggest challenges that banks face is channel shift. The metaverse can be viewed as a new channel where banks can facilitate virtual transactions through effective financial services.
- The banking industry's adoption of cryptocurrency and blockchain has increased significantly in recent years and will account for 4% and 4.5% of metaverse revenue in 2025.
- US companies dominate metaverse-related patent publications in the banking industry, publishing 1,663 patents from January 2017 to July 2023.
- Access market size and growth forecasts for the metaverse in banking.
- Identify metaverse leaders and laggards across payments, retail banking, and wealth management.
- Understand the key challenges facing the banking industry, and how the metaverse addresses these challenges.
- Access case study examples of metaverse vendors and investments within the banking industry.
- Understand metaverse adoption using alternative datasets and analysis showing M&A activity, mentions of metaverse technologies in company filings, and metaverse hiring trends in the banking industry.
- Executive Summary
- The Metaverse Value Chain
- Key players in the metaverse value chain
- Foundation layer
- Semiconductors
- Components
- Connectivity
- Data management
- Blockchain
- Tools layer
- 3D engines
- Artificial intelligence
- Visualization engines
- Payment platforms
- Adtech
- User interface layer
- Experience layer
- Banking Challenges
- Impact Assessment
- Banking in the metaverse
- Intermediation
- On-ramping and off-ramping
- Metaverse mortgages
- Cryptocurrency wallets
- Future opportunities
- The impact of the metaverse on banking challenges
- How the metaverse helps resolve ESG challenges
- How the metaverse can exacerbate cybersecurity risks
- How the metaverse helps resolve demographic challenges
- How the metaverse addresses the challenge of personalization
- How the metaverse can help resolve the challenge of financial inclusion
- How the metaverse addresses the challenge of cost containment
- Case Studies
- Transak: the world’s first metaverse ATM
- Fintropolis: Ally’s financial literacy game in Minecraft
- Axie Infinity: the rise and fall of play-to-earn metaverse gaming
- Worldline opens a virtual showroom and shopping mall in Decentraland.
- Ryugukoku: the Japanese metaverse economic zone
- Binance.US opens a virtual headquarters and enables BNPL in Decentraland
- Citi Group unveils a digital twin of its Global Wealth Center
- Data Analysis
- Market size and growth forecasts
- Mergers and acquisitions
- Patent trends
- Company filings trends
- Hiring trends
- Social media trends
- Metaverse timeline
- Companies
- Leading metaverse adopters in banking
- Leading metaverse vendors
- Specialist metaverse vendors in banking
- Sector Scorecards
- Payments sector scorecard
- Who’s who
- Thematic screen
- Valuation screen
- Risk screen
- Retail banking sector scorecard
- Who’s who
- Thematic screen
- Valuation screen
- Risk screen
- Wealth management sector scorecard
- Who’s who
- Thematic screen
- Valuation screen
- Risk screen
- Glossary
- Further Reading
- GlobalData reports
- Our Thematic Research Methodology
- About GlobalData
- Contact Us
- List of Tables
- Table 1: Key challenges facing the banking sector
- Table 2: Mergers and acquisitions
- Table 3: Leading metaverse adopters in banking
- Table 4: Leading metaverse vendors
- Table 5: Specialist metaverse vendors in banking
- Table 6: Glossary
- Table 7: GlobalData reports
- List of Figures
- Figure 1: Key players in the metaverse value chain
- Figure 2: The metaverse value chain
- Figure 3: The metaverse value chain - Foundation layer: semiconductors
- Figure 4: The metaverse value chain - Foundation layer: components
- Figure 5: The metaverse value chain - Foundation layer: connectivity
- Figure 6: The metaverse value chain - Foundation layer: data management
- Figure 7: The metaverse value chain - Foundation layer: blockchain
- Figure 8: The metaverse value chain - Tools layer: 3D engines
- Figure 9: The metaverse value chain - Tools layer: artificial intelligence
- Figure 10: The metaverse value chain - Tools layer: visualization engines
- Figure 11: The metaverse value chain - Tools layer: payment platforms
- Figure 12: The metaverse value chain - Tools layer: adtech
- Figure 13: The metaverse value chain - User interface layer
- Figure 14: The metaverse value chain - Experience layer
- Figure 15: Metaverse deal activity across the banking sector has been strong
- Figure 16: Thematic Impact Assessment
- Figure 17: Banks will play a crucial role in enabling the metaverse
- Figure 18: Metaverse currencies have unique functions within their respective platforms
- Figure 19: A bank’s role in intermediating the metaverse depends on platform openness
- Figure 20: Each potential metaverse currency has its limitations
- Figure 21: Retail banks and payments companies have differing levels of crypto friendliness
- Figure 22: Metaverse mortgages differ from conventional mortgages
- Figure 23: The value of popular metaverse tokens fell sharply after November 2021
- Figure 24: Crypto wallets store more than just a user’s metaverse tokens
- Figure 25: DBS Betterworld in The Sandbox
- Figure 26: The Ronin hack was the biggest crypto heist to date
- Figure 27: OCBCx65Chulia in Decentraland
- Figure 28: DeFi protocols are often referred to as “money legos” due to their composability
- Figure 29: Bloom-o-rama – Fidelity’s flower-themed money mindfulness game in Decentraland
- Figure 30: JPMorgan Chase’s Onyx lounge in Decentraland
- Figure 31: Transak ATM outside Worldline’s shopping mall
- Figure 32: Fintropolis was made in partnership with Blockworks
- Figure 33: Each location in Fintropolis gamifies various aspects of financial education
- Figure 34: Axie Infinity is a blockchain-based play-to-earn game
- Figure 35: Axie Infinity engagement fell sharply after 2021
- Figure 36: Worldline’s virtual showroom and shopping mall in Decentraland’s Crypto Valley
- Figure 37: An early concept map for Ryugukoku
- Figure 38: Each involved party will provide expertise and services to create Ryugukoku
- Figure 39: Binance.US is located in the Crypto Valley area of Decentraland
- Figure 40: Citi has promoted its Global Wealth Center across two different metaverse platforms
- Figure 41: The metaverse will generate $627 billion in revenue by 2030
- Figure 42: Metaverse-related patent activity steadily increased until Q4 2020
- Figure 43: US banking companies dominate metaverse-related patent publications
- Figure 44: Alibaba had the most metaverse-related patents in banking between January 2017 and July 2023
- Figure 45: Digital assets is the most mentioned metaverse-related term in banking company filings.
- Figure 46: Sharp growth in metaverse-related mentions across banking company filings started in 2021
- Figure 47: Metaverse-related job vacancies in banking grew 208% between Q4 2021 and Q2 2022
- Figure 48: Coinbase, a US cryptocurrency exchange, leads hiring activity by a wide margin
- Figure 49: Metaverse-related social media mentions in banking increased exponentially before 2022
- Figure 50: The metaverse story
- Figure 51: Many banking companies have chosen Decentraland, The Sandbox, and Roblox to host their metaverse investments
- Figure 52: Who does what in the payments space?
- Figure 53: Thematic screen - Payments sector scorecard
- Figure 54: Valuation screen - Payments sector scorecard
- Figure 55: Risk screen - Payments sector scorecard
- Figure 56: Who does what in the retail banking space?
- Figure 57: Thematic screen - Retail banking sector scorecard
- Figure 58: Valuation screen - Retail banking sector scorecard
- Figure 59: Risk screen - Retail banking sector scorecard
- Figure 60: Who does what in the wealth management space?
- Figure 61: Thematic screen - Wealth management sector scorecard
- Figure 62: Valuation screen - Wealth management sector scorecard
- Figure 63: Risk screen - Wealth management sector scorecard
- Figure 64: Our five-step approach for generating a sector scorecard
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