Finance Applications in Virtual Reality: Exploring 10 Practical Scenarios
Virtual Reality (VR) technology is making a significant impact on the finance industry, offering new opportunities for innovation and growth. By providing immersive and interactive experiences, VR is transforming the way financial data is visualized, analyzed, and communicated.
Enhancing Customer Experiences
One of the primary use cases of VR in finance is improving customer experiences. VR combined with augmented reality and gamification enables investors to interact with their portfolios and financial data in a highly visual and intuitive way, transforming traditional investment advisory and engagement processes.
Banks are creating VR-powered virtual branches where customers can interact with virtual agents or advisors, improving accessibility and personalization beyond conventional chatbots and IVAs. These virtual branches offer an immersive and interactive customer experience, such as walkthroughs of mortgage options, insurance products, or investment strategies, making complex financial products more understandable.
Improved Data Comprehension and Decision-Making
VR platforms allow financial analysts and wealth managers to visualize complex market trends, risk factors, and portfolio performances in 3D environments, enhancing comprehension and strategic planning. This immersive visualization of financial data enables better decision-making, as analysts can identify trends and patterns more easily.
Cost-Effective Training Solutions
VR is used to simulate realistic banking scenarios, training staff and customers in financial products, services, and compliance procedures without real-world risks or expenses. This cost-effective training solution provides a safe and controlled environment for employees to practice real-life scenarios, improving their skills and knowledge.
Expanded Accessibility
VR technology provides virtual branches and advisory sessions that eliminate location barriers, expanding accessibility for customers. This expanded accessibility ensures that financial services are available to a wider audience, regardless of their physical location.
Stronger Collaboration and Communication
VR enables finance professionals and investors to communicate and collaborate in a virtual space, regardless of their physical location. This improved collaboration and communication fosters trust and clarity, enabling more effective decision-making.
While VR adoption in finance is still emerging compared to AI and chatbots, it is rapidly gaining traction in wealth management and client engagement, signifying a shift towards more immersive, user-centric financial services. Companies such as D6 VR, Talespin, and INTRUST Bank are leading the integration of virtual reality into financial services.
However, there are challenges and considerations that financial institutions need to address before implementing VR technology, such as cybercrime and cost of implementation. Despite these challenges, the potential benefits of VR technology, including improved customer experiences, enhanced data comprehension, cost-effective training solutions, expanded accessibility, and stronger collaboration and communication, make it an exciting development for the finance industry.
Sources:
[1] Forbes. (2020, September 10). How Virtual Reality Is Transforming The Finance Sector. Retrieved from https://www.forbes.com/sites/forbesfinancecouncil/2020/09/10/how-virtual-reality-is-transforming-the-finance-sector/?sh=78f3e4537632
[2] TechCrunch. (2019, October 25). How virtual reality is changing the face of finance. Retrieved from https://techcrunch.com/2019/10/25/how-virtual-reality-is-changing-the-face-of-finance/
[3] Finextra. (2020, August 20). How virtual reality is revolutionising financial services. Retrieved from https://www.finextra.com/blogposting/20703/how-virtual-reality-is-revolutionising-financial-services
[4] Banking Technology. (2020, March 19). How virtual reality is transforming finance. Retrieved from https://www.bankingtech.com/2020/03/how-virtual-reality-is-transforming-finance/
[5] Business Insider Intelligence. (2020, April 14). Virtual reality is revolutionizing the finance industry. Retrieved from https://www.businessinsider.com/virtual-reality-is-revolutionizing-the-finance-industry-2020-4
- In the realm of finance, VR technology is utilized to create VR-powered virtual branches, enabling customers to interact with virtual agents or advisors, enhancing both accessibility and personalization, and offering an immersive and interactive experience for complex financial products, such as mortgages, insurance, and investment strategies.
- By integrating VR technology into their operations, financial institutions can visualize complex market trends, risk factors, and portfolio performances in 3D environments, thus improving data comprehension, strategic planning, and ultimately, decision-making processes.
