Exploring the Metaverse and Its Relevance for Businesses

The metaverse represents a virtual world where users can interact, share experiences, and engage in simulated environments. This concept has gained significant attention due to advancements in augmented (AR) and virtual reality (VR) technologies. Forecasts suggest that the AR and VR market is set to soar to $204 billion by 2030, up from $11 billion in 2020, reflecting a remarkable compound annual growth rate (CAGR) of 33% over the decade.

The Business Perspective

Within the business sector, enterprise spending on AR and VR contributed to 19% of the total AR and VR revenue in 2020, and experts anticipate this share to surge to 64% by 2030. However, the question remains: is there a genuine need for metaversal experiences in both the B2B and B2C realms?

The adoption of the metaverse is contingent not only on technological advancements but also on how a company's clientele operates. For instance, in the context of digital banking, making payments in the metaverse might not differ significantly from making online payments via a mobile phone. However, it's worth noting that some individuals still find online buying more complicated than offline transactions. There is still room for improvement and reducing friction in the user experience.

Enhancing User Experience with Digital Twins

One solution to improving user experience in the metaverse is the use of digital twins. These digital representations can help illustrate complex products or configurations that are challenging to convey through traditional methods. For instance, selecting the perfect configuration for a business vehicle can be simplified through a virtual configurator in a metaverse environment, allowing customers to explore various options.

The Landscape of Providers

In terms of providers in the metaverse, the landscape is heavily influenced by major tech players. Companies like Meta (formerly Facebook) and Microsoft's HoloLens dominate the hardware aspect. However, the platform ecosystem is more open, with various virtual platforms available. As technology continues to advance, more companies will likely enter the market, offering diverse hardware and software solutions.

Accessibility and Barriers

Accessibility to metaversal experiences varies depending on factors such as the type of device used and internet infrastructure. Many users interact with the metaverse on desktop or mobile devices, reducing the barrier to entry. However, if VR is the focus, the need for expensive headsets can be a significant hurdle for users. Furthermore, reliable internet connectivity is essential for streaming real-time metaverse experiences.

Preparing for the Metaverse

From a regulatory and technical standpoint, companies need to consider several factors before venturing into the metaverse. Firstly, they should evaluate whether their business truly benefits from a virtual presence. Hardware and infrastructure requirements must be met to ensure a seamless experience for both employees and customers. Additionally, understanding how customers operate and what platforms they use is important in making the metaverse transition successful.

The Metaverse and Digital Banking

The impact of the metaverse on digital banking is an interesting topic. Currently, making payments and browsing the web in virtual reality doesn't differ significantly from doing so on a smartphone. However, potential friction arises when users are asked to make purchases in a 3D virtual environment. This can be cumbersome, especially with current VR headsets. Nevertheless, as mixed reality glasses and similar technologies evolve, they are likely to streamline the payment process and enhance the overall user experience, making it more convenient and familiar.

The metaverse is gaining momentum in the business world, but its relevance and adoption depend on the specific needs and preferences of companies and their clients.
As technology advances and becomes more accessible, the metaverse may find its place in various industries, including digital banking, offering new possibilities and challenges for businesses and consumers alike.

List of Key Considerations for Businesses:

1. Evaluate the genuine need for a metaversal presence.
2. Consider hardware and infrastructure requirements.
3. Understand customer preferences and platforms.
4. Keep an eye on evolving technologies, including mixed reality glasses.
5. Continuously improve user experience through digital twins and other tools.