AR and VR in Fintech: Benefits and Pitfalls

Are you using VR or AR in banking?

Not yet? Looks like you are not trendy! Virtual reality is commonly associated with interactive 3D video games, entertainment and adventures. However, financial specialists found a way to use the full potential of VR and AR to construct immersive banking worlds. Vivid imaginary and 3D environments guide customers through accounts, present figures and handle financial operations.

If you think these innovations are long to come, you are wrong.

The future is already here! BNP Paribas has already introduced a virtual reality app to look through spendings, bills and transactions details in the VR environment. Mastercard and Swarovski strive not to bring up the rear in a fast-paced and innovative world. The companies have recently introduced a VR app to browse and purchase products in a virtual store. Now you can have a walk in a mall, look through beautiful shopping windows, try on clothes, eye at your favorite products and pay for all goods while cooking dinner or sitting on your sofa. Everything is done just in several clicks!

Will you reap the benefits of VR technologies? How will your customers respond to innovations? What challenges to encounter? Mangosoft.tech addresses your concerns, uncovers the secrets of world-famous companies and provides the latest insights into the IT sphere.

Virtual Reality has taken Fintech by storm. What does it mean for you?

Change in Customer Behavior. Virtual and real worlds are two different environments where people behave differently. Do not expect your clients to be as responsive to your digital assistant as to a salesperson. Human factor does matter! While communication plays a defining role in physical organizations, your visitors might simply slip away during the conversation with a bank worker in virtual reality. Test waters before going into the digital ocean. You might choose to deploy a teaser  to collect data and understand your customers better. Equipped with knowledge of clients’ habits and concerns, you eliminate all the risks of losing users’ attention and create a convenient space for interaction with the target audience.

Easier Payments. VR apps simplify the payment process making it easier to purchase goods and products. Forgot to pay your bills? No problem! Take on a VR journey, relax and do all transaction without hassle.  Alibaba revealed an app where shoppers can pay for the products by nodding their head. Developed by Ant Financials, the software can become a real breakthrough on the market! It means you can attract a large audience by explaining the benefits of more manageable payments. Target different segments, think of your customers' needs and let them go through the process with you. Digital assistants come in handy here as they can provide tips and hints in the VR world. By improving user experience, you get super satisfied clients who rave about your service!

AR and VR stepped in banking providing customers with greater visualization of banking functions. New systems appear to enable better tracking of the workflow process. With AR application, you can literally see how your funds are transferred to another account. The bank of China went even further allowing their clients to gather coupons using AR, which they can spend in favorite online and physical stores. Nowadays, a simple wave of a hand can substitute complicated banking operations and ease the use of fintech apps.

Stronger Emotional Bonds. Virtual reality was first applied to provide an innovative entertainment tool. You expect to get a strong emotional feedback after immersing in a brand-new environment filled with adventures and new contacts. When you play a VR game, you dive into an atmosphere of Medieval France or a futuristic city to make yourself busy in the evening or spend time with your friends. The same is applied to Fintech. Customers install VR apps to feel innovations and keep up with the pace of IT development. Enhanced user interface and easier payment systems go as an addition to the unique emotional experience. This fact makes the quality of art and animation essential to meeting and exceeding clients’ expectations.

Improved Training and Quality of Education with AR/VR. Immersive learning is a dominating trend in all industries. Since new technologies become more affordable, companies actively use to provide better learning experience for employees and partners. AR tools allow projecting digital items into real environments. VR software goes even further creating a brand-new world for investigation and discovery. You can touch all object, request any information, analyze data - and all these in an entertaining and fun format!

Any Pitfalls?

What if you meet resistance? The primary challenge of all Fintech companies is to integrate VR technologies and revolutionize the banking sector through high inclusion of virtual reality services into financial products. Nonetheless, before throwing your developers in at the deep end with such a complicated task, think whether your clients and company need VR software. Developing new technologies is often a time and money-consuming process that requires substantial resources from entrepreneurs. You can invest lots of funds and energy to come up with a unique app that will remain undemanded among your target audience.

Do market research

Put yourself in customers’ shoes

Think if you can handle this innovation.

Energy Consumption. Did you know that VR apps require 7 times the power of a PC software? It means your operational expenses might triple with the launch of an app. Your customers and partners might be unprepared to pay enormous bills for an insightful VR journey. Calculate the budget, think of risks and decide whether there is a place for innovation in your segment.

All humans make mistakes, even your customers! In an effort to streamline business processes, you might overlook substantial threats. By simplifying payment operations, you provide clients with more freedom and flexibility. It is much easier to nod your head in Alibaba VR app and purchase the necessary product than fill out your credentials and credit card information.

On the other hand, your customers might mistakenly buy goods or pay for the services they did not order. Consequently, the number of refunds will dramatically increase. And, believe me, that’s lots of hassle! Make sure your clients are protected from such errors and frauds before going viral. Mangosoft.tech has extensive experience in launching successful Fintech projects and will assist you with necessary improvements to boost your development in this field.

Virtual reality is causing transformations in different industries. New worlds are introduced to guide customers through a journey where they can get real services and products. VR/AR apps definitely attract a lot of attention and often create a hype on the market. If handled well, this innovation will upgrade your business to a new level bringing new customers. However, you should weigh up all pros and cons before stepping into the transformation path