Transformed Interactions: Exploring 10 Applications of Augmented Reality in Consumer Banking and Finance
The banking industry is witnessing a significant shift, as augmented reality (AR) technology begins to reshape the way financial services are delivered. This transformation promises to enhance user experience, risk management, operational efficiency, and customer engagement, giving businesses a competitive edge.
Current trends in AR adoption revolve around integrating AR with artificial intelligence (AI) to provide real-time, personalized financial advice and predictive analytics. This innovative approach offers customers tailored recommendations based on their financial goals, risk tolerance, and market trends. Additionally, the use of wearable AR devices, such as smart glasses, is growing, enabling users to access financial information on the go, perform transactions through gestures, and receive real-time notifications directly in their field of view [1].
Enhanced data visualization is another key area where AR is making a mark. By improving the visualization of market data and trends, AR aids banks in more accurate risk assessments and informed decision-making. The future of AR in banking is expected to evolve into a mixed reality experience that seamlessly blends the real and virtual worlds, providing hyperpersonalized interactions [1].
While AI-driven fintech solutions dominate areas like fraud detection, credit scoring, and robo-advisory services, AR complements these by creating interactive and engaging customer experiences. The AR market in banking and financial services is projected to be a rapidly growing market, reaching a valuation near $600 billion by 2030, with a compound annual growth rate (CAGR) of almost 40% [1].
Some notable examples of AR integration in the banking sector include Visa Europe partnering with the AR-based app Blippar to enable customers to make payments by simply pointing their smartphones toward products [2]. Axis Bank in India has leveraged AR for finance by implementing iris scans for Aadhaar-based transactions, while Westpac Banking Corporation in Australia offers financial data visualization and budgeting with the help of smartphone-based AR [3].
However, the implementation of AR in financial services is not without challenges. Ensuring data security and privacy, high costs of implementation, and lack of proper regulations pose significant hurdles. To address these issues, companies like Appinventiv prioritize regulatory compliance and robust data security in their development process [4].
Innovative fintech software development companies, such as Appinventiv, are at the forefront of this AR revolution, crafting solutions tailored to enhance operational efficiencies, improve customer service, and ensure data security. Their portfolio includes successful projects like EdFundo and Mudra that have revolutionized financial interactions for clients [5].
In conclusion, the integration of AR and AI, the surge in the adoption of wearable AR devices, enhanced data visualization for risk management, and the emergence of mixed reality are shaping the future of banking. This transformation promises a more immersive, data-driven, and customer-centric banking experience, revolutionizing the way financial organizations interact with their customers [1][2].
Sources: [1] Appinventiv. (2021). The Future of Banking: AR & AI Revolutionizing Finance. Retrieved from https://www.appinventiv.com/blog/the-future-of-banking-ar-ai-revolutionizing-finance [2] Finextra. (2020). Visa Europe partners with Blippar to enable mobile payments using AR. Retrieved from https://www.finextra.com/news/fullstory.aspx?newsid=6780 [3] The Hindu BusinessLine. (2019). Axis Bank uses AR for iris scan in Aadhaar-based transactions. Retrieved from https://www.thehindubusinessline.com/info-tech/axis-bank-uses-ar-for-iris-scan-in-aadhaar-based-transactions/article28089721.ece [4] Appinventiv. (2021). Fintech Solutions Development: Custom Mobile Banking, Accounting Management, and Wealth Management. Retrieved from https://www.appinventiv.com/industries/financial-services [5] Appinventiv. (2021). EdFundo and Mudra: Revolutionizing Financial Interactions. Retrieved from https://www.appinventiv.com/case-studies/edfundo-and-mudra-revolutionizing-financial-interactions
- Machine learning, combined with mobile app development, is being leveraged by fintech companies like Appinventiv to create innovative solutions that improve customer service and data security in the banking sector.
- According to the latest reports, the integration of AR technology in the banking and financial services industry is expected to reach a valuation of approximately $600 billion by 2030, as more banks implement AR for enhanced data visualization, interactive customer experiences, and risk management.
