Impact of augmented reality (AR) in financial services

Apr 05, 2024

For the longest time, augmented reality has largely been associated with the gaming and fashion industry.

Today, we are witnessing a steep rise in the need for AR in financial services sector. How can augmented reality change the landscape of the fintech industry? Let's find out.

What is augmented reality?

Augmented reality is an interactive 3D experience that superimposes a computer-generated image in a real-world environment.

It is in business can be communicated through multiple sensory modalities such as visual elements, sound, tactile features, and more. 

AR has seen an uptick in popularity, particularly among companies that are highly involved in mobile and business software.

The analytical data around the uses of augmented reality in business can help companies stay updated with consumer spending habits and more.

AR in financial services can prove to be more than just a marketing aid. Augmented reality in fintech space is helping customers in more tangible ways, from decision-making to purchasing and beyond.

How is augmented reality used in businesses?

Technology is constantly evolving our lives; from pages to smartphones, we have truly come a long way. AR then becomes a natural stepping stone for us. Augmented reality in business is used in multiple ways.

In the retail sector, the impact of augmented reality can be seen through the introduction QR code scanning tool.

This has helped brick-and-mortar businesses to receive digital payments and enhance customer experience.

Through augmented reality, businesses can provide their customers the ability to see an item in 3D from the comfort of their homes.

Industrial markets can largely benefit from having augmented reality in business since AR can bridge the gap between manual work and remote staff.

Creative companies can use AR to boost their sales and marketing strategies. It can assist your HR departments in onboarding employees and training them quickly in a realistic 3D environment without any life-threatening risks.

Impact of AR on financial technology

The impact of AR in financial services is slowly but surely rising, with augmented reality making its way into many administrative capabilities.

While it's a long way before augmented reality in business truly takes its hold, it has managed to create some big waves in the following sectors:

1. Blockchain and AR

As two of the fastest-growing technologies in the world, blockchain and augmented reality can work together to create products and services that were previously considered unrealistic and impossible.

Through blockchain technology, the impact of augmented reality can be multifold by creating virtual products and resources tagged with high value.

Buying and selling virtual items and even real estate is a possible venture through the consolidation of blockchain and AR.

2. Virtual reality payments

Yet another great example of the impact of augmented reality in fintech, virtual reality payments are quickly becoming a way to earn more revenue.

Business owners can create virtual shops inside the AR universe where users can purchase goods and services without ever leaving the virtual world.

Using AR in financial services as an online payment method, fintech companies can take full advantage of this underutilized technology and gain a competitive edge over others.

3. Security

Augmented reality, when used in tandem with virtual reality, can upgrade customer experience and security to a whole another level.

The impact of augmented reality can be seen by using biometric security in an otherwise VR world.

AR in finance can be utilized by companies aiming to create a VR universe wherein transactions via an ATM are possible through the AR structure.

4. Virtual trading

Augmented reality penetrates the trading sector, where traders can make exchanges and experience meetings through AR-powered workstations.

Virtual trading helps traders make the most of their work without geographical and technological barriers.

This kind of workstation packed with 2D and 3D components can allow traders to view, analyze, and interact with large amounts of financial data effortlessly.

5. 3D data visualisation

The ability to view a vast amount of data in a single glance can establish the impact of AR in financial services.

As more and more complex data emerges, using augmented reality in business operations can make it easier to view, sort, and analyze financial data.

6. Customer service

Augmented reality can be a game changer in the customer service industry.

AR in financial services can help clients in addressing complaints and grievances as well as find the closest ATMs.

Through customized immersive experiences, fintech companies can replace virtual assistance and chatbots with AR customer service.

This enhances and personalizes customer service without the need for an actual one-on-one human interaction.

How important can augmented reality become for fintech?

Considering the accelerated rate at which augmented reality is growing, using AR in financial services can become a dividing factor between businesses that use AR and those that don't.

Augmented reality in business can be used for data analysis, 3D data visualization, enhanced accessibility of financial information, and more.

The use cases for augmented reality in fintech will likely increase owing to its wide-ranging utility, from training programs to knowledge management and customer experience.

Augmented reality has the potential to revolutionize the fintech industry and become an indispensable part of its tech stack.

The future of AR in finance lies in creating software and hardware solutions to upgrade customer experience and increase lead generation and retention.

The impact of augmented reality is becoming increasingly visible as more and more fintech companies utilize AR in financial services.

It is imperative to keep up with the evolving technologies like AR and VR to stay relevant in today's cutthroat financial industry.