Virtual reality (VR) and augmented reality (AR) are expected to change the face of banking. These two technologies are already beginning to infiltrate other industries. In retail, for instance, a number of shops are beginning to use augmented reality in changing rooms. There are also apps that allow individuals to test drive a car or see how furniture will look in the home without the need to leave the bed.

How will these technologies change the banking industry? Will people be able to use the technology in opening a business account or perhaps when applying for business loans? Here are some of the theoretical and current applications of the technology in the banking field.

Virtual technology in making payments

Besides entertainment, the retail industry is one of the first industries expected to fully adopt VR or AR. Some shops are already integrating the use of virtual reality when it comes to making payments.

One major payment processing company has developed a program that allows consumers to use the virtual world to make payments. When wearing a specialized VR headset, the user can bring out a digital bank card and enter their PIN code by pressing numbers scattered across the room.

The randomly placed numbers is specially designed as a security feature designed to prevent people from copying your movements and gathering your PIN code.

Virtual banks

With the use of virtual reality, it may now be possible to do away with building brick and mortar banks. Virtual technology can be used to provide more options in contacting clients and engaging customers. Instead of people driving to a bank and waiting in line to be assisted, they can talk to a branch employee without stepping foot outside their home or leaving their offices.

In theory, the use of virtual reality would be cheaper than running a brick and mortar branch. There is no need to build several banks within a given area. And no need to hire and train teams to handle different types of consumer concerns.

Applications of virtual reality in banking

There are many possible applications of virtual reality in the banking industry. For one, the bank could provide the VR tools and equipment needed to access their services. Customers can go to a bank where bankers can use the technology to present their bank’s products and services.

Simulations using VR technology present a more engaging way of learning about a bank and its offers in comparison to a phone or video call. Meetings between clients and financial advisers could also be scheduled online. This enables all parties to collaborate without the need to physically meet with each other.

Another possibility is banks developing apps that allow people to access their services from their home or office. Customers can attend a virtual meeting without the need to step foot in a bank.

Banks can also use virtual reality to give customers access to their financial data. Doing so will allow them to make better financial decisions such as opening a new account or transferring funds between accounts. It is the type of self-service that is also offered to mobile banking customers.

Personalizing the experience

The use of VR and AR technologies also offers the possibility of creating a customizable experience for banking consumers. Consumers could create a world that reflects their personality and makes the banking experience more fun and convenient for them.

Advantages of using the technology

What makes VR technology an alluring concept for the banking industry is that it offers the best of both worlds. Using the technology is cheaper than building multiple physical branches. However, compared to mobile banking, virtual reality has the ability to offer a more immersive experience while still retaining the brick-and-mortar feel.

The use of virtual technology in the banking industry is in its infancy. There are only a handful of financial institutions that are currently using the technology. However, once the technology does begin to take hold, it could provide immeasurable results for the early adopters.