Augmented Reality , Banking

9 Banking Areas That Can Be Disrupted With Augmented Reality

Using augmented reality in banking can not only increase the efficiency of certain operations but also enhance the overall user experience. Check out these 9 applications of AR in banking & finance!

Augmented Reality (AR) technology isn’t just a faraway tool of the future— it’s here and now! The banking and finance sector, bracing itself for impact, needs to be quick to adopt new, innovative banking technologies. At a time when the future of banking technology is being shaped by quantum computing, blockchain, artificial intelligence, API platforms, instant payment systems, and robotic process automation, extended reality technologies like augmented reality and virtual reality are not far behind 

Cloud card - Virtual Credit/Debit Car

Source: Alamy.com

Don't confuse Augmented Reality with Virtual Reality, they're not the same. Augmented Reality, unlike the fully digital world of Virtual Reality, lets users interact with and manipulate data. It's is a trend which will only grow bigger with newer generations. These new consumers are not only comfortable with many such Augmented Reality applications but also prefer options that add greater ease to their experience.

Augmented Reality can also be utilized to solve many challenges faced by banks today - be it slow self-service capabilities, lack of smarter authentication system, limited customer experience outside bank branches or limited access of information through debit and credit cards.

What is Augmented Reality and Why Should I Care? 


Augmented Reality and Mixed Reality enable users to undergo an immersive, interactive experience where reality is “augmented” and enriched with computer-generated data, images, and sounds.

Sounds fancy, right?

Its not just all ‘Google Glasseshowever. AR has major applications in commerce, business and can even be utilized to improve several key banking areas. Check out 5 offbeat uses of Augmented Reality to learn more.

Augmented reality - What is AR? How to experience AR? AR Development, AR added valueSource: 123rf.com

Consumer banking is a personal experience. Augmented Reality solutions not only enhance the user-experience manyfold, but also revolutionize the overall customer experience. At the other end, overall business processes will also be many times smoother with Augmented Reality and Mixed Reality being used for better recruitment and training, data-visualization and decision-making, and less paperwork. 

With augmented reality enabled on over 500 million devices, and the global augmented reality market poised to grow significantly to about 90 billion U.S. dollars by 2020, right now is the time to adopt A.R. and M.R. technologies. If metaphors are your thing, banks are going to want to be the early bird because AR is one big worm. 

Without further ado, here are 9 ways to utilize augmented reality in banking and finance industry:

9 Applications of Augmented Reality In Banking

1. Locating ATMs and Offers

2. Self Service

3. Payments Experience

4. Customer Acquisition

5. Bank Branches

6. Stock Trading

7. Financial Education

8. Security

9. Reduced Documentation 

  1. Locating ATMs and Offers

Augmented Reality phone applications have been developed to help customers find nearby ATMs and bank branches. This has been extended to features which can help locate finance-approved properties as well as best dining and city events. In India, Axis Bank launched a successful AR app called “Near Me” for this purpose. 

These apps convey data in real-time about location, distance, and services at these ATMs and bank branches. Adopting to the needs of today’s customer, holograms, simulations and projections are being personalized through these innovative technologies. These apps are linked to the up-to-date bank information for that specific customer.

Apps are also used to uncover offers and deals in real time. One can simply walk down a main street and watch the possibilities unfold as the camera scans around it. 

  1. Self-Service


Customers don’t want to have to go to the bank. The reduction in the use of brick-and-mortar branches is due to a preference to carry out routine bank transactions online.

Banking apps are also a popular method to acquire new customers— a new generation more at ease with these applications. They make transactions smoother and simpler. At the same time actual branches can be consolidated and closed. It’s a high return on investment.

Now, imagine the power of augmented reality in banking applications. Virtual and mixed reality assistants will help customers with information about their bank account, loan transactions, online payments, mortgages and much more.

With ‘interactive cards’ one simply need to scan credit or debit card through a smartphones, and reap the benefits of an ultimate user experience. That perfectly explains why 'only those who scan, gain', when it comes to interactive cards. 

According to experts at the Interactive Customer Experience Summit in Dallas, interactive kiosks using augmented and virtual reality have already upgraded the customer experience. These experiences create a “buzz” through user generated content (UGC), and are often measured through social media activity and emails received, that is invaluable to the brand. 

  1. Payment Experience

 

Contactless virtual cards will render the payment experience seamless and will solve the problem of absence of instant checkout experiences. Debit and Credit cards will be truly universal. They will also gain protection against theft and loss by enabling smarter authentication processes. Like the self-service mechanisms, these will also reduce bank visits.

Information can be easily visualized. This makes for user friendly, easier payment options. These payments are also benefitted from instant tracking, user identification and instant bank balance checks.

The augmented reality finance apps may also encourage payments by recognizing the specs and price of an item and overlaying the data on the customer’s experience with the real world. In fact, MasterCard has partnered with Wearality to create a virtual world where consumers make purchases within it.

Account payments and management will also get simpler. Online accounts already pay credit card and utility bills. AR and MR. Apps will soon allow purchase to occur with the flick of a wrist, a blink of an eye or even the sound of your voice. 

  1. Customer Acquisition

 
73% of millennials are looking to Google, PayPal, and Apple for financial products (figures from the Millennial Disruption Index). Local banks are no longer the go-to. Banks and  other financial institutions need to start appealing to this group — one that will only expand.

Newer generations of customers and clients will grow up alongside these newer technologies. The technologies themselves will grow as more and more institutions in different fields start adopting AR and VR. Attracting and retaining customers will depend on banks’ ability to adopt new banking trends and innovations.

 AR-In-Banking-Application-Interactive PrintSource: UpcomingMedia.com

 Another sector which will be heavily impacted are marketing campaigns and advertisements. The possibilities of numerous innovations and experiential marketing campaigns that use sign enabled product brochures,  personalized marketing messages and information embedded digital advertisements have opened up. Interactive print will have a great role to play in the future of brand management and advertising.

Interactive print, for example, combines the tactileness of print with the interactivity of digital media and makes for an exciting customer experience. A study by Nielsen Analytic Consulting showed that the average ROI for marketing that generated sales within three months of the investment was $109 returned for every $100 spent or a 9 percent ROI.

But the ROI for online was $218 returned for every $100 spent or a 118 percent return. Augmented reality is set to unlock even greater returns in these fields by combining the strengths of both — a sound investment for any brand. Providing the best ROI for print advertisement campaigns. 

  1. Bank Branches

 
At-home banks and hybrid banking may remove the need for physical branches altogether! For now, they will definitely reduce the number of bank visits— invaluable to the wired millennial.

These hybrid and virtual banks combine self-service with effective AR assistants such as enhanced chat-bots or robots to provide necessary information to customers. There can even be provisions for live video conferencing to connect a customer to bank representatives.

A white-paper called 'The Future of the Branch' explains that branches will be much more capable of offering customers what they want with the help of these new capabilities. It’ll also be easier for banks to offer high-quality assistants to remote areas and regions that haven’t yet been covered.

Other businesses have developed augmented reality apps that allow for visualization of real estate trends and data whilst scanning potential homes for sale.

With a similar visualization of account information, personalized bank assistance can be offered— face-to-face meetings without any physical presence. Data can be presented in brilliant, new illustrative fashions which can help customers really understand how some investment strategy may be different from another. This will create a greater propensity towards easy financial management. 

  1. Stock Trading

Visualizing data is crucial to traders. This will help making important decisions about wealth management. AR and VR add to this experience and make it easier and faster to visualize and organize these large, complex amounts of data.

Recently, Citi used Microsoft HoloLens to give traders Holographic Workstations. Even employees and other analysts can be submerged in a holistic view of workflow processes through AR’s ability to protect over their physical environment.

Similar to virtualized bank branches, financial advisers and traders can share extensive information about accounts and stock prices to allow an investors to make informed decisions. They need not scavenge through books, annual or quarterly reports, SEC filings or other information.  In fact, Comarch already uses virtual reality in their wealth management software to give users better access to algorithms and trading tools. 

  1. Financial Education

 
A big save for everyone here! Whether you’re a millennial or a retiree, interactive exercises and AR assistants will allow everyone to better their financial education and make more informed decisions. Banks can use this to help roll out new information about offers and deals as well as basic information that is required for those about to enter the world of finance.

For example, Desjardins Bank created an augmented reality character called Penny whose main objective is to educate customers about saving for their future retirement. 

  1. Security 

 
AR could introduce new measures in biometric security such as voice recognition and retinal scans. VR banks could be accessed through virtual credit cards — all confirmed by highly personal, biometric details. Even the greatest vocal mimickers and hackers would struggle to get in. Smart glasses will also have the ability to access personal account information through multiple biometric authentication options.

  1. Reduced Documentation! 

 
Who likes paperwork? Nobody. As AR develops, this necessary evil could drop to negligible levels. Statements, advice and letters and even cheques and demand drafts could be presented virtually. This, along with bank visits, would increase the ease of obtaining personal loans. Short loan processing and servicing times? Yes, please! 

More for the future!

 
The peak of Augmented Reality technology is yet to come and banks and other financial institutions need to be ready. The key is to stay ahead of the curve. Soon Augmented Reality browsers will enable brands to worry less about costs and distribution, and more on their story. Browsers lower entry barriers and help distribute apps at the click of a link. AR is going viral. It is the future and nothing can stop it.

With reduced time to market, an ultimate user experience, cost saving though automation, greater customer acquisition, better business process, less frequent bank visits and greater connectivity, AR in banking is an attractive future that holds tremendous potential.  


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