In my last article, I had talked about the three dominant trends that are going to influence branding, marketing and customer experience with regards to the banking and finance industry. In this one, I am going to highlight the individual trends and the significance they hold for the sector.
Well, Augmented Reality or AR, as a technology has already started touching our everyday lives. Once you have a Smartphone in your hand, you can find AR appearing in most consumer oriented applications including games. Now, the application of AR is becoming more pronounced in financial technology, owing to its promise of a hardware-free environment among many other benefits. Augmented Reality will soon transfigure the business as well as the consumer finance tech in varying ways though.
Is Banking AR Already a Phenomenon?
Yes, AR in banking is already a trend with financial institutions from all parts of the world, experimenting with the technology and its multiple potential applications.
Let’s consider a few real world examples now. Axis Bank from India has its AR app called Near Me. The app is developed in a way that promises an effortless and quick search for ATM locations, finance-approved properties and even the dining options in your city.
A similar though a bit more specialized AR app has been created by the Commonwealth Bank of Australia. It specifically caters to customers looking for buying/selling a home. In this case, AR combines with rich data to provide customers with historical information about property sales, current listings, and price fluctuations and so on.
And all this is just the beginning because financial institutions, compared to organizations from other sectors, are known to be a bit rigid. With increasing partnerships and an urge to satisfy the growing demands of the customers, banks will soon start exploiting AR to the maximum possible extent.
A Quick Look at Some of the Applications of AR in Banking
If you are not quite aware of how the technology of AR and VR is being applied in the finance sector, here goes a few applications that you must know about.
- Data Visualization is made easier by AR and it becomes less complex for professionals to analyze huge volumes of data. Investors can be provided with a more sorted out version of the data to be able to take informed decisions.
- Virtual Trading can be facilitated by AR by means of creating virtual workstations that adds 2D and 3D elements to the bank’s existing processes.
- Virtual Reality Payments come accompanied by virtual trading and it allows consumers to make purchases and complete transactions without leaving the virtual world. All thanks to the magic of the Augmented Reality technology.
- Enhanced Biometric Security can be introduced in an AR system to pave the way for a more secure customer experience. They can be used to access bank services, make payments, ATM transactions and so on.
- Financial Education, which is quite important in understanding the changes in the financial systems, is fostered by the AR technology.
- Customer Service and acquisition too are made easier by the AR technology. This is because the present-day bank customers are the millennial who want something different from what their previous generations looked for or were happy with.
- Recruitment and Training is a so far unexplored area but it can be largely benefited by Augmented Reality, especially to uphold the bank or financial institution as a growingly tech-savvy-one.
What the Future of AR Holds for the Banking and Finance Industry?
The future of AR in banking points to a phase where hybrid branches will show up more than ever. While this prediction is still clouded, it is a fact that analysts believe AR can be utilized to render the bank customers with autonomous at-home banking facilities. This will, in turn, lead to the emergence of the hybrid branches.
If you are wondering if the sector is truly awaiting such remarkable changes, know that the very concept AR was like science fiction just a few years back. Also, take note of the fact that technology has the potential to reach the otherwise remote regions and areas that lack qualified banking professionals. In these parts, clients will be given access to high-quality banking assistance, which is certainly going to be incredible.
With all that being said, I can certainly conclude that adoption of AR in banking is not widespread at this time. But the way digital technology is influencing every sector and people’s lives and the way it is becoming more and more affordable, the day is not far when AR will be indispensable for ensuring customer service, loyalty and brand awareness in the finance industry.