Big Banks In The UK Step Away From Investments In The Metaverse
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More UK banks are ditching investments as the metaverse hype disappears. A recent report revealed that augmented and virtual reality assets have dwindled as the banks reconsider their technological approach.
Following Facebook’s rebranding and change of name to Meta two years ago, several financial firms scrambled for attention in the metaverse. A Citi report forecasted that by 2020, the metaverse industry could be worth up to $13 trillion.
Despite the hype on the metaverse, the industry still needs to live up to its expectations. The metaverse is not growing as predicted, and several financial institutions are beginning to step back from space.
Investments In The Metaverse Dropped Significantly This Year
The number of UK-based banks that invest in technologies in the metaverse has fallen substantially. More than 50% of UK banks invested in technologies such as virtual reality last year, compared to only 38% this year.
Censuswide conducted a survey of 150 UK banking executives for Hexaware Mobiquity. The survey revealed that many UK banks are shifting from technologies that will enable them to prepare for the metaverse to technologies that secure their systems.
Almost 25% of the banks are investing more in cybersecurity, with 21% concentrating on Open Banking APIs, while 22% are focused on investments in the cloud.
The survey also showed that UK banks need to do more than their contemporaries in other jurisdictions regarding Generative AI adoption. While 19% of global banks are adopting generative AI, only 13% of the banks in the UK are doing the same.
More Banks Are Drifting Towards Machine Learning
Vice President of global digital marketing at Hexaware Mobiquity, Peter-Jan Venn, added his voice to the trend. He stated that the technology landscape is shifting rapidly and has placed more priority on other areas.
He said that more immediate and pressing needs, such as generative AI, have superseded the need to invest heavily in the metaverse, as the UK banks are finding out.
Also, UK banks are developing data sets to understand ESG opportunities and risks while improving stakeholder engagement. The report revealed that 37% of banks use AI and machine learning to identify and monitor risks and opportunities in ESG.
De Venn noted that technology has been playing a significant role in ESG, enabling banks to improve their social responsibility and environmental goals. This will help them to find solutions to global environmental challenges.
