The Banking Executive Magazine - September Issue 2022

ISSUE 165 SEPTEMBER 2022 the BANKING EXECUTIVE 1 Editorial THE METAVERSE; AN EVOLUTION NOT A REVOLUTION First Appearing in Science fiction novels, the Metaverse and virtual economy has been around since 1992. But today it is all what people talk about. It’s hard to define exactly what the Metaverse means, as the technology behind it is evolving to include many aspects of virtual reality. Put simply, it’s an all-encompassing digital world that exists in parallel to the real world. Huge amounts of money are being poured into the Metaverse, and according to experts, it is estimated the market and business opportunities for companies in the Metaverse to surpass $1 trillion in yearly revenues, and to touch $400.5 Billion by 2028. Though still in its nascent stage, gaming, media, and the entertainment industries have already made great inroads into the Metaverse. Many other industries, especially banks and FinTechs, are now trying to exploit the rapidly evolving technology. Banks and FinTechs have the potential to lead, as the world has shifted to digital interactions and the adoption of digital FinTech solution The winners, who understand that it is vital to make management of finances and transactions immersive and comparable to real life on the Metaverse, will focus on embedded finance and strategic partnerships so that they are selling to both the consumers and businesses. This will, however, call for a monumental effort that requires not just a transformation of their legacy technology, but their entire marketing strategy and business model. Dr. Joseph Torbey, Chairman - World Union of Arab Bankers