How the Next Generation of the Internet will Enhance Open Banking Solutions from Fintechs

Although many of us cast our mind to the vast social media applications of the metaverse, this new technological landscape extends far beyond the realm of socializing and entertainment and into more traditional sectors. The growth of virtual and augmented reality have enabled the buying and selling of goods in virtual environments, revolutionizing how consumers make transactions online. This, coupled with many more innovations in spending and fintech services are already beginning to bring new optimism for the emergence of open banking. 

As a sprawling virtual space, fintech firms and more traditional institutions alike have been quick to embrace the metaverse, and the technology that drives it. JP Morgan (NYSE: JPM), for instance, hurried to create its own digital lobby within the Decentraland metaverse, and HSBC recently opted to build its own space within The Sandbox, stating that “the agreement opens the door for other global institutions to continue innovating in Web3 as consumer adoption demands more robust experiences in the metaverse through decentralized and gamified offerings.”

(Image: Grayscale)

Asset management firm Grayscale highlights the potential that the metaverse can bring to businesses throughout a range of industries. Throughout the total addressable market for the metaverse, we can see the vast potential for more comprehensive payment solutions and financial frameworks. With the metaverse highlighted as a market opportunity worth $1.4 trillion, it’s certainly worth fintechs turning their attention to the age of Web 3.0 sooner rather than later. 

Whilst the metaverse is still many years away from fully achieving its potential, we can see it already beginning to build on the potential offered by open banking solutions. Over the coming years, we may not be capable of virtually walking through our investment performance charts, or digitally transporting ourselves to a trading floor to view our cryptocurrency investments, but the emergence of Web 3.0 is set to fundamentally change our relationship with our money. Let’s take a deeper look into how the next generation of the internet will make this possible:

The Future of Data Visualization

Having the opportunity to explore the rich levels of data that users produce about their spending habits, investment options, and various assets in the age of big data and unprecedented levels of insight is a key facet of open banking. 

The financial industry is becoming increasingly complex as it adopts new technologies like blockchain and cryptocurrency, and user wealth can be spread in a more diverse manner than ever before. 

As the metaverse grows, AR and VR solutions will be capable of generating experiences that can help users to decipher complex information about their accounts. With this in mind, Vivek Dubey, author of the fintech book of the year in 2020, suggests that we look to the model that Salesforce has implemented using Oculus Rift as a means of creating a 3D space in which information can be broken down. 

“Constancy Labs, a piece of Fidelity Investments, has likewise exploited the innovation behind Oculus Rift,” Dubey adds. “They made a virtual world called ‘Stock City’ where stock portfolios are transformed into a virtual 3D city, where financial specialists can inundate themselves in the information.”

Such a move can pave the way for far greater levels of financial literacy and much more comprehensive control over financial management among users. 

In the age of Web 3.0, we’re likely to be generating greater volumes of big data than ever before. It will be the duty of fintech firms to work out more comprehensive ways to convert the data we produce into manageable visualizations that can offer actionable insights. 

Today, it’s still possible for users to access insights into spending patterns through platforms like Revolut - which has become an innovator in the age of open banking.

The Road to Accessibility

The metaverse will be the single biggest tool in the development of open banking. This is because it can lay the foundations to truly democratize finance. 

In embracing this new digital frontier, fintechs can help to shift away from a one-dimensional market to a more volumetric virtual landscape with different dimensions and a creative economy. 

Through leveraging a global interconnected landscape, the metaverse can pave the way for digital financial access for, ultimately, billions of users - who will, in turn, contribute to a thriving online economy. 

In their commitment to leveraging open banking, fintechs like Revolut, Starling, and Nubank (NYSE: NU) have already enhanced the number of channels available to users by some margin - making financial services, capital, and assets more accessible for users throughout the world. 

In accelerating the growth of an industry that had been initially slow to modernize, we can already see democratizing effects in play. This is particularly true with Nubank’s success in providing banking solutions for those without access to banking services in Latin America. 

As the metaverse continues to grow, we will see more users conduct their banking in a virtual manner. In a borderless digital ecosystem, fintechs have been presented with an unprecedented opportunity to thrive on a global scale. Leveraging big data insights and promoting financial literacy is likely to only be the start of the open banking revolution.