10 Benefits of Augmented Reality in Financial Sector

Augmented Reality (AR) is already making its appearance in everyday life. It appears in consumer-oriented apps such as gaming, banking, and entertainment, and is based on the omnipresent smartphone. 

 

In the corporate world, cloud access frees AR users from hardware and enables enterprises to combine the computer's data-crunching capability with human judgement and knowledge.

 

This is never more evident than in financial innovation. The industry is flourishing, and augmented reality is the next natural step in the process of transforming banking to operate on new technologies. AR will transform both commercial and consumer financial technology but in distinct ways.

 

Many of these innovations are being integrated into services in the commercial realm. While it will take a bit of time for Augmented Reality to acquire traction in this industry, technologies have already begun to have an influence throughout their numerous uses.

 

 

What is Augmented Reality (AR)?

 

Augmented Reality (AR) is a technology that assembles and superimposes a digital perspective on top of the real environment. AR creates a fully immersive and dynamic virtual trip that augments the actual environment with pictures, text, and other data via a variety of competent devices such as smartphones, smart displays, glasses, smart lenses, and tablets. 

 

The most well-known implementation of AR in recent years was with the popular Pokémon GO series, which achieved breakout commercial popularity. Though technology is still in its infancy, augmented reality has been used by inventors and corporations all over the world for purposes other than entertainment.

 

Also Read | Augmented Reality in Insurance Industry

 

Blockchain and Augmented Reality

 

When it comes to emerging technologies, AR, Virtual Reality, and Blockchain come to mind first. These three, which are expected to be worth billions of dollars by 2024, have tremendous potential and, when combined, may bring forth things and services that were previously unthinkable.

 

There are various projects in the augmented reality industry that are investigating ways to apply blockchain technology, which will aid in providing unique qualities and value to virtual products and resources. 

 

Several companies, such as Verses, Super World, and Arcona, are experimenting with new ways to market virtual real estate by combining AR and Blockchain innovation.

 

Benefits of Augmented Reality in Finance

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Benefits of AR in Finance

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1. Visualization of Data

 

As the amount of data accessible grows, as does the need to quickly gather the most complicated patterns, AR is attempting to bridge the gap between machine data analysis and human comprehension. As a result, this technology may assist analysts in swiftly understanding complicated data flows and making judgments.

 

2. Virtual Trading

 

Some firms are turning trading into a virtual reality experience by developing virtual reality trading workstations. This is accomplished by incorporating Virtual Reality with asset management software, which provides users with improving accessibility to trading algorithms and techniques.

 

3. Payments

 

Some businesses are even turning payments into a virtual experience. MasterCard, for example, has collaborated with AR to build a universe in which users may purchase without fleeing the virtual environment.

 

At the 2018 Mobile World Congress, Visa debuted an AR app that displays a food location heatmap over your environments, allowing users to interface with the applications to point to certain portions and purchase meals.

 

Users may immediately move on and pay with Visa after placing an order through a restaurant service. This interactive payment system enables a tailored experience as well as better real-time engagement with outlets.

 

4. Security

 

Biometric security might be integrated into an AR system, which could then link to a Virtual Reality environment, to provide a more secure consumer experience. These might be used to get access to VR banking services, conduct ATM transactions, or make payments.

 

With the introduction of behavioural biometrics, iris detection, facial gestures, and voice recognition are being merged with AR, in addition to the current structure of fingerprint scanners, to create safe choices.

 

Axis Bank was the first Indian bank to use AR in conjunction with Iris Scan for Aadhaar-based verification for micro-ATM apps in 2018. Using the built-in 'AR view' function, real-time identification of nearby branches and ATMs was also made possible.

 

Also Read | Augmented Reality in Marketing

 

5. Education in Finance

 

Education is essential for both staff and clients of financial institutions to grasp the economic world's continual developments.

 

In addition to areas such as aviation, construction, and healthcare, the banking and financial services business is establishing roots in virtual training to expand on value adds and services.

 

On-the-job training is viewed as both a feasible and cost-effective method of improving services. Client financial education is also considered a wonderful technique to draw on prospective clients and increase network branches.

 

6. Customer Support

 

Many financial institutions employ augmented reality and virtual reality to improve their clients' experiences. Many banks offer augmented reality apps that assist clients to locate nearby banks and ATMs. 

 

Furthermore, some real estate firms offer apps that allow clients to pass by and scan residences with their smartphones and tablets to obtain more specific information about the company.

 

Also Read | Augmented Reality Trends

 

7. Training and Recruitment

 

Financial institutions must ensure that they hire the greatest talent and train all staff in order to deliver high-quality services to their consumers. Some banks are leveraging virtual reality knowledge to demonstrate to potential recruits in the technology industry how inventive and technologically sophisticated the bank is.

 

8. Obtaining Customers

 

Millennials are a technology-savvy demographic that need solutions that adapt with them. In fact, according to the Millennial Disruption Index, 73 per cent of Millennials choose Google, PayPal, and Apple for financial goods, as opposed to local banks. 

 

As a result, banks and other institutions attempting to recruit this generation are introducing more technologies, such as augmented reality (AR) and virtual reality (VR), into their systems in order to attract and keep consumers.

 

9. Reduced Costs

 

Emerging innovative banks can use AR/VR banking rather than conventional brick-and-mortar facilities, saving time and money while giving the same banking experience to customers.

 

Traditional banks will benefit from the technology as well. With AR/VR in place, they will indeed be able to reduce travel for meetings and training since workers will be willing to share insights practically anywhere and in a life-like manner.

 

10. Near Horizon

 

Though it may appear that all of this is a little far-fetched at this point, it is apparent that the capacity to blend virtual and physical worlds will alter banking and finance. 

 

As technology advances, financial institutions should stay ahead of the curve by thoroughly examining their procedures to identify areas where immersive experiences might boost client relations and sales.

 

Also Read | AI and Augmented Reality in Pinterest

 

 

Future of AR in Financial Sector

 

Financial institutions should not compete with the Information Technology (IT) industry. Rather, they owe it to one another to blend and welcome what the other has to give. 

 

Implementing consumer-friendly AR is just as crucial as adopting AR on the trading floor and amongst institutions for the financial sector to thrive in an increasingly digitised and linked world.

 

Individual customers are significantly more likely to accept new augmented reality technology if it is already in their pocket. Because smartphones are so widely available, people will download and use AR-enabled experiences in droves. This influence is especially pronounced among millennials, who are the next generation of financial consumers and industry creators.

 

 

Conclusion

 

The possibilities for a more in-depth and comprehensive financial AR experience are limitless. Consider bitcoin, a value unit that is both transparent and ephemeral. Consider all of the different ways that overlaying digital information on your smart device may bring this money to life. 

 

For example, AR may be used to see a virtual crypto safe in a secure area of your home, similar to how you would store your IRL safe. In conclusion, the future of the financial sector with augmented reality is prospective.