3 Banks That Are Exploring the Metaverse

These banks are three of the first to experiment with the metaverse to offer a better banking experience for gamers and other customers.

Banks are steadily beginning to realize that the metaverse — technologies that offer virtual “worlds” and augmented realities that mix aspects of digital and physical realities — offers the ideal way to reach gamers and other customers looking for a fun way to do their banking.

“The so-called “metaverse” is really multiple separate virtual reality environments, including Decentraland, The Sandbox and Somnium Space,” according to American Banker.

“Some primarily host video games. Others, like Decentraland, are online worlds where people create avatars that represent themselves and participate in real-life activities like buying a house and attending a wedding.”

Back in the early 2000s, a few banks set up virtual branches in Second Life, one of the first online virtual worlds exploring the metaverse, for their customers. Now the metaverse has greatly expanded, and banks are taking notice.

From virtual lobbies where customers mingle with a tiger and the bank CEO to banks using the metaverse to engage gaming and sports enthusiasts, these three banks are some of the first to experiment with the metaverse for a better customer experience, according to American Banker.

1. JP Morgan Chase

“The $2.6 trillion-asset New York bank has set up shop in Decentraland, a virtual world in which users can buy digital plots of land,” according to American Banker. “Decentraland has a monthly active user base of about 300,000 people and 18,000 daily users.”

When a customer’s avatar, a figure that represents them, enters the “Onyx by JP Morgan” virtual bank lounge, they’re greeted by an illuminated portrait of JP Morgan Chase CEO Jamie Dimon, a tiger pacing about and wall-mounted displays with “video demos of how payments could be made in space using smart contracts” and a timeline of the bank’s blockchain projects, according to American Banker.

2. HSBC

In March 2022, The Sandbox announced a new partnership with HSBC, which purchased a virtual “land plot” at The Sandbox to engage gaming and sports enthusiast bank customers.

“The groundbreaking partnership between The Sandbox and HSBC will see the global financial services provider acquire a plot of LAND, virtual real estate in The Sandbox metaverse, which will be developed to engage and connect with sports, esports and gaming enthusiasts,” according to The Sandbox announcement.

“Through our partnership with The Sandbox we are making our foray into the metaverse, allowing us to create innovative brand experiences for new and existing customers,” said Suresh Balaji, Chief Marketing Officer, Asia-Pacific, HSBC, in the Sandbox announcement.

“We’re pleased to see large, trusted institutions such as HSBC join The Sandbox open metaverse and embrace the culture of Web3, connecting with users through entertainment, gaming and user-generated content,” said Sebastien Borget, COO and co-founder of The Sandbox, in the partnership announcement.

“We believe this is the beginning of a broader adoption of Web3 and the metaverse by institutions driving brand experiences and engagement within this new ecosystem.”

3. American Express

In early March 2022, American Express filed several patent applications for blending the digital world with physical reality in the metaverse, according to American Banker.

One patent is for eCommerce software that allows consumers to conduct business transactions in the metaverse, says American Banker. Another patent is for an online marketplace for buyers and sellers of non-fungible tokens, and a third patent is for electronic transfers of funds and additional banking services in the metaverse.

“While the metaverse is evolving and is at an early stage, it is attracting mainstream attention including moves by Visa and Mastercard,” says American Banker. “The metaverse also provides potential sources of payment acceptance and incentive marketing for Amex businesses that serve travel and premium clients.”