'Metaverse' becomes new growth engine of financial industry

The Korea Times

The Korea Times

Finance

Mon, October 2, 2023 | 13:44

Companies

'Metaverse' becomes new growth engine of financial industry

Posted : 2021-08-24 09:30

Updated : 2021-08-24 17:10

Brokerages, banks adopting 'virtual shared space' to extend business reach

By Anna J. Park

The fever of 'metaverse' ― a convergence of physical, augmented and virtual shared space ― is sweeping the country's financial industry, as this trending concept is expected to create and expand business scopes. Metaverse is having its moment internationally now, as the pandemic has accelerated digital-based economies in response to disruptions to face-to-face business patterns.

Heads of major financial companies ― including brokerages, banks, credit card issuers and insurers ― have been pinpointing metaverse was a key initiative project for their businesses. They are holding townhall meetings on metaverse platforms to better communicate with staff members of the young MZ generation, referring to a combination of Millennials and Generation Z, while they try to blend metaverse with their financial services in an attempt not to get left behind.

Major brokerage companies and banks are fast adopting metaverse initiatives into their business models.

NH Investment & Securities is currently preparing to launch its own metaverse platform as early as the end of September. Tentatively named NH Universe, the service aims to target the MZ generation, as they account for 52 percent of the brokerage company's mobile trading service.

The metaverse platform will create a virtual space extended from the real headquarters of NH Investment, where up to 2,000 customers can simultaneously interact while they enjoy various services, such as investment analysis seminars and games.

"As the key generation of stock investment is transitioning towards the MZ generation, we see changes in customers' standards in selecting financial services," an official from NH Investment & Securities said. "The company plans to make customers' investment experience fun and easy with diverse digital platform services."

IBK Investment & Securities has partnered with MetaCity Forum, a virtual space providing a wide range of services, including entertainment, e-commerce and tourism. The brokerage company will provide virtual financial services for the metaverse project and launch its own metaverse platform as well to further attract the MZ generation.

"As metaverse offers a key to future industry, the company expects to provide a new direction for the brokerage industry through the MetaCity Forum project," said Son Hyun-sang, vice president at the firm.

Various banks are also preparing their own metaverse services. Shinhan Bank is one of the most active domestic banks adopting metaverse-themed initiatives, with plans to develop its own metaverse platform which will offer a virtual banking branch and financial education. It also plans to be the first bank offering metaverse services to customer universities. The bank believes the MZ generation is the key to the digital platform.

"The MZ generation is having fun with the metaverse environment, consuming various contents. As the bank sees a huge potential in it, we plan to enhance our competitiveness in the metaverse platform," an official from Shinhan Bank said, adding that the bank's metaverse platform is scheduled to be completed by the first half of next year.

Hana Bank's Zepetto meeting image / Courtesy of Hana Bank

Hana Bank has launched its digital innovation taskforce, focusing on developing metaverse initiatives. The bank has recently held a commencement ceremony for newly hired employees at Zepetto, its metaverse platform business.

NH NongHyup Bank also held a townhall meeting at Zepetto, where an award ceremony was also held to award employees for their achievements in digitization. The bank has recently also opened a Dokdo branch to commemorate its 60th anniversary, offering a virtual banking branch available through its mobile banking application. The virtual branch not only offers financial products inspired by Dokdo, the country's easternmost islets, but also sells local seafood caught and produced around Dokko.

"Starting with the Dokdo branch, NH NongHyup Bank will continue to open new virtual branches, which will be expanded into our own metaverse platform," said Kwon Jun-hak, the bank's CEO.

KB Kookmin Bank has also held some of its business meetings on metaverse platform Gather. Based on its experience utilizing metaverse technology, the bank plans to open up a virtual metaverse branch soon.

According to a recent report by KTB Investment & Securities, the global market for extended reality (XR), which includes virtual reality (VR) and augmented reality (AR) markets, will increase to $1.5 trillion by 2030, from $47 billion in 2019, due mainly to metaverse expansion.

"Exponential growth is expected for the metaverse market, with a new normal made amid the pandemic and the Fourth Industrial Revolution, as the growth of the virtual economy will provide new opportunities for the financial industry," said Shin Seok-young, a researcher at Hana Institute of Finance.

annajpark@koreatimes.co.kr