According to sources, the country’s largest lender, State Bank of India (SBI), is also nearing the completion of a Metaverse store.
The state-owned Union Bank of India announced on July 8 the launch of a Metaverse-based virtual lounge where it will virtually showcase its products to customers. The lender is the first in India to open a virtual publicity shop.
“In the initial phase, Uni-verse, the bank’s Metaverse virtual lounge, hosts the bank’s product information and videos.” Uni-verse will provide customers with a one-of-a-kind banking experience, allowing them to roam around the lounge and learn about the bank’s deposits, loans, government welfare schemes, and digital initiatives as if they were in the real world. “This initiative is in collaboration with Tech Mahindra,” the bank stated.
Union Bank is not the first lender to open a branch in the Metaverse; JPMorgan Chase & Co did so earlier this year in February.
JPMorgan launched its lounge on the Metaverse platform Decentraland. The Onyx lounge is named after the multinational investment bank’s 2020 blockchain business.
Visitors to the Onyx lounge can design their own avatars by selecting a gender, skin tone, hairstyle, clothing, and accessories. Visitors are greeted by a tiger avatar and a digital portrait of the bank’s CEO, Jamie Dimon.
According to sources, the country’s largest lender, State Bank of India (SBI), is also nearing the completion of a Metaverse store.
So, what exactly is the Metaverse, and why is it important?
In a nutshell, the Metaverse is an evolved form of the internet. Augmented Reality technology allows for real-life experiences and situations (AR). Metaverse allows users to perform almost any task. They can go to various stores, inquire, and converse with various Metaverse users.
Both domestic and foreign lenders are interested in attracting customers through Metaverse as the use of online banking services grows and lenders increase the share of online loan originations in their portfolios.
According to Union Bank of India officials, the bank will publicise its products through the Metaverse but will not issue loans directly through the virtual lounge due to a lack of regulatory clarity.
Furthermore, the bank intends to promote the Metaverse lounge through newly constructed digital banking units (DBU), they stated. In the Union Budget 2022-23, the Centre announced the establishment of 75 DBUs in 75 districts to commemorate India’s 75th year of independence.
A DBU is a specialised fixed point business unit / hub that houses the necessary digital infrastructure to deliver digital banking products and services. A DBU’s goal is to expand digital financial services and financial inclusion.
According to RBI guidelines, scheduled commercial banks with prior digital banking experience may open DBUs in Tier 1 to Tier 6 centres without seeking permission from the apex bank in each case.