The moment we hear the words Augmented Reality(AR) and Virtual Reality(VR), the first thing that comes to our minds is video games. Though popularized by virtual games, the application of Augmented Reality and Virtual Reality tools are widespread. Today, even the banking industry is looking at ways to enhance its quality of service using Augmented Reality and Virtual Reality tools.
Before we understand the applications of AR and VR in the banking sector, let us understand the meaning of these terms.
Definition of Augmented Reality and Virtual Reality
Augmented Reality (AR) is the technology that assembles and overlays a digital perception of the actual world. Augmented Reality provides an immersive and dynamic virtual journey wherein real-life information is presented through interesting images and graphs using a host of devices like smartphones and tablets. In recent times, the most well-known application of Augmented Reality was the game Pokémon GO, which gained immense popularity.
Virtual Reality (VR) is a broad term for an immersive multi-sensory computer-generated experience that allows users to interact with a simulated environment. By putting on a VR headset, users can experience the virtual world in a way that seems real to them. Although the most well-known application of Virtual Reality is virtual gaming, VR is also used in other industries, like real estate, for viewing a property and also in the medical sector for providing better treatment.
How can Augmented Reality and Virtual Reality revolutionize the banking sector?
Listed below are the major ways in which implementation of Augmented Reality and Virtual Reality can benefit the banking sector:
1. Improved Customer Service
Augmented Reality and Virtual Reality can be utilized to create a virtual digital bank where customers can be provided with personalized attention using virtual assistance. Using VR, mundane tasks like form filling can be completed digitally and in a hassle-free way. Customers can also interact with chatbots to resolve any query which will ensure quick resolution of issues.
2. Seamless Trading Experience
The data visualization applications created by AR technology can help finance professionals view complex data in a user-friendly format. The ease of access will help traders a great deal in understanding the underlying intricacies that lie in the data, which will enable them to make a better decision.
3. Expansion of Customer Base
Banks can utilize Augmented Reality and Virtual Reality tools to attract customers from all walks of life by changing the perception people have about traditional methods of banking. Instead of burdening customers with endless documents and cumbersome calculations, banks can use AR and VR to create an immersive experience for their customers.
4. Enhanced Security
The introduction of Augmented Reality into banking can help in keeping the data of customers way more secure. When coupled with biometric security tools like Voice Recognition and Retinal Scans, AR can boost the security of the system and help banks in blocking unauthorized access by hackers.
5. Minimal Documentation
With the introduction of Augmented Reality and Virtual Reality tools, the need for documentation will be reduced to a bare minimum. All the important documents can be accessed virtually, which will save a lot of time. This will be specifically helpful in processing loans, which usually involve a lot of paperwork.
How is Augmented Reality and Virtual Reality being utilized by different banks?
The banking sector is well aware of the potential of this emerging technology and there are a few banks that have already started using Augmented Reality and Virtual Reality to create an immersive experience for their customers.
One of India’s leading banks, the Axis Bank, is exploring the benefits of Augmented Reality through its mobile app. By using the AR view option on the app, customers can get details about the nearest branches and ATMs along with the directions.
Bank of Kuwait used Virtual Reality to develop a 3D virtual tour of the bank. With the help of a VR design, the concept of the ‘Branch of the Future came to life, which allowed customers to enjoy the facilities provided by the bank from the comfort of their homes.
Challenges associated with the implementation of Augmented Reality and Virtual Reality in banking
In the initial stages, banks might face technical challenges while implementing AR and VR tools, which will require specific technical expertise to be sorted. Even with the technology functioning smoothly, a lack of awareness among the public will give rise to security concerns while using AR and VR.
Although in their nascent stages, Augmented Reality and Virtual Reality are quickly catching the eye of various businesses and innovators who are trying their best to leverage this technology to the best of their capabilities.
With the world looking at personalized and hassle-free ways of banking, Augmented Reality and Virtual Reality are bound to be a part of materializing this transition. Now is the right time to invest in ideas like Augmented Reality and Virtual Reality which are sure to pay rich dividends in the future.