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Metaverse - A Facade Or Still relevant?

Updated: Aug 11, 2023

#Metaverse may not be a buzzword compared to other megatrends, but it is still transforming financial services from NFTs on the blockchain to Extended realities.

Today, the Internet is fundamentally a collection of sites and apps, metaverse efforts is the next chapter. It envisions a persistent 3D environment, permeated with a sense of place, where walking from the physical office to the movie theater across the street is same as moving from work platform to a social platform. This metaverse of digital twin is a virtual representation of a physical object, person, or process, contextualized in a digital version of its environment.

Although metaverse development is still in its preliminary stages and quite fragmented, change could come quickly. The total addressable metaverse market could reach up to an estimated five billion users—or nearly 63% of the global population—and generate revenues of between US$8 trillion and US$13 trillion by 2030, according to Citi.

Metaverse has captured not only the attention of gamers, but also global enterprise across many industries. Not surprising it is unlocking new investment opportunities. German vehicle maker BMW is utilizing “digital twin” factories for new design customizations, which allows different manufacturing locations to sync up and learn from each other.

Meta’s slogan “The metaverse may be virtual but the impact will be real

Whilst other trendy technologies like artificial intelligence (AI) is making new waves. The market reaction shows shares of technology companies rose amid optimism about AI development.

Last year, just over 100 generative AI-focused US startups fetched US$2.6 billion in investments and estimates for the funding outlook this year are comparable (CB Insights).

Metaverse Oppurtunites & Risks

Banks and the payment industry risk losing enormous potential for innovation and growth as decentralized finance reduces the need for intermediaries.

#Digitaltwins will certainly provide many interesting investment opportunities for limitless portfolio diversification.

An example is Roblox Career Center — an experience directly on Roblox where early career candidates can dive into our immersive platform firsthand and learn what it’s like to be a part of a company that is reimagining the way people come together. Many market participants are already exploring how to tap into this disruptive technology. Bank of America is training new hires with metaverse and #ai. Onyx by J.P. Morgan, HSBC, Kookmin Bank , DBS Bank to mention a few have set up shops in the metaverse. Goldman Sachs forecast metaverse as $8 Trillion opportunity.

According to recent publication of Influencer Marketing Hub by market experts Geri Mileva;

  • ️The global AR, VR, and MR market will reach about $250 billion by 2028.

  • By 2024, there will be over 34 million VR headsets installed worldwide.

  • The metaverse global market value will reach $82 billion by 2023

  • The top five most attended Metaverse concerts include Travis Scott with 45.8 million attendees, Lil Nas X with 37million attendees, Ariana Grande with 27 million attendees, 24KGoldn with 14.6 million and 21 Pilots with 13.4 million.

  • North America is predicted to dominate revenue share until 2032. Asia Pacific is projected to have the highest CAGR.

  • The European AR/VR market will grow from $2.8 billion in 2021 to $20.9 billion in 2025.

Increasingly, as with all innovative technologies there are growing risks which can be explored by bad actors. Here are some below;

  • Data and Privacy

  • Lack of Regulatory Oversight

  • Identity Theft and Fraud

  • Risks of Virtual Currencies and Assets

  • Security

  • Abuse and Harassment

It is important for financial service players to prepare metaverse index products as market demands will only keep growing. This is fueled by the growing market capitalization of metaverse tokens and a shift to investing in digital assets by millennials, Gen X and Gen Z clients.

Gain invaluable insights into the future of banking and capital market with our unparalleled bespoke virtual risk management program. Speak with our experts today.


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