Metaverse attracted a lot of public attention after Facebook founder Mark Zuckerberg expressed his intention to change his company's identity to Meta Platforms Inc. However, the emergence of the metaverse trend and concept has actually been a long time coming.
The use of the metaverse emerged from the science fiction novels Snow Crash by Neal Stephenson (1992) and Ready Player One by Ernest Cline (2011). Metaverse is described as a space that connects virtual worlds and augmented reality (AR).
Metaverse from the words meta and universal. 'Meta' means beyond and 'universe' means universe.
Metaverse will become the most popular technology in the next few years and impact various industries, including Islamic banking and other Islamic financial services.
Metaverse means virtual space, where someone explores with other users who are not in the same physical space, through a combination of technological elements, such as virtual reality (VR), AR, and video so that users seem to live in a digital world.
Metaverse will become the most popular technology in the next few years and impact various industries, including Islamic banking and other Islamic financial services.
Through the immersive experience offered, metaverse banking can be packaged as a new experience for its customers. Customer satisfaction studies reveal that new experiences make customers happier than physical objects.
Companies that prioritize experience over product have a 200 percent greater likelihood of referrals and 25 percent more customer loyalty, so metaverse technology can become a new experience for bank customers.
Additionally, the Digital Banking Report reports that nearly half of financial services executives surveyed believe one in five customers will use virtual or AR technology for everyday transactions.
Virtual space is ideal for bank customer interaction because it is not limited by physical space.
Through the metaverse, Islamic banks can try to reach new customers who can't (or don't want to) go to a branch and still offer an immersive experience. Especially during the pandemic, direct contact with customers is advised to be reduced.
Therefore, metaverse is the right solution through virtual world video technology face to face with customers, and using interactive teller machines using video connectivity. This is also a new experience for customers. Virtual space is ideal for bank customer interaction because it is not limited by physical space.
With more and more providers, financial services are gradually moving towards digital banking. The idea of a virtual bank in the metaverse world will be the future of the Islamic banking industry in the future.
In the metaverse, Islamic bank customers get personalized service. They can carry out their banking activities while enjoying a cup of coffee or tea at home with a personal touch. Customers get service anytime, anywhere.
So, Islamic banks can be efficient by reducing costs because they don't need to invest in providing branch offices or representatives in various regions because metaverse services can replace them.
Metaverse is very useful because it helps the sharia banking industry increase sharia financial inclusion, financial access for people who have not had contact with sharia financial institutions because there are no branch offices in their area.
Initial trials on the use of metaverse services have begun to be implemented in several banks abroad, for example in South Korea at KB Kookmin Bank, Industrial Bank of Korea, NH Nonghyup, and Hana Bank, with the aim of improving service to customers.
Apart from that, at Bank of America, BNP Paribas, Bank of Kuwait, and finally Mecrobank in Sweden.
Ready or not ready, the development of the metaverse is coming before us. The presence of the metaverse brings various conveniences and sophistications, and is also not free from shortcomings, namely related to data security.
Infrastructure support
The presence of the metaverse must be prepared through training to improve sharia banking HR skills. On the other hand, the metaverse can threaten and reduce human resources so it must be planned carefully to avoid a wave of layoffs.
Metaverse development is optimal if it is supported by infrastructure such as preparing fast internet connection services. The government must accelerate the 5G network map in Indonesia so that it can support the transformation of the sharia banking industry.
Ready or not ready, the development of the metaverse is coming before us. The presence of the metaverse brings various conveniences and sophistications, and is also not free from shortcomings, namely related to data security.
Therefore, the principle of prudence and consumer protection in line with sharia principles must remain a priority, with adequate anticipation of regulations and fatwas from the Indonesian Ulema Council (MUI) so that problems can be minimized.
Disclaimer:
- Source: REPUBLIKA.ID (published 15 February 2022, with the title 'Metavers dan Perbankan Syariah'
- The author's views do not represent the views of the Institution
