Navigating the Future of Augmented Reality Investments in Banking and Payments
Augmented Reality in Banking and Payments: Navigating the Challenges
Augmented reality (AR) has long been touted as a game-changer in various industries, including banking and payments. However, the road to creating long-term value from AR investments in this sector has proven to be challenging. The question remains: is AR a viable tool for innovation in banking and payments, or is it simply a way for traditional players to stay relevant in the face of digital disruption?
The initial vision for AR in banking and payments was ambitious, with ideas like using AR glasses for seamless payments. However, the reality has been less groundbreaking. While some banks have explored AR applications across different customer touchpoints, many of these initiatives have struggled to gain traction.
Utility: Finding Practical Applications
Early attempts at integrating AR into banking apps, such as ATM and branch locators, have largely fallen by the wayside as branch closures and declining cash usage reshape the industry. Banks have since shifted their focus to using AR for purchasing physical assets and enhancing customer experiences. However, the success of these initiatives remains uncertain.
Visualisation: Simplifying Complex Financial Information
One area where AR shows promise is in visualising complex financial products and services. Companies like Mastercard and Amex are using AR to help customers understand their credit card benefits, while others, like ABN AMRO and NatWest Group, are using AR for financial education. These visualisation tools can make financial information more accessible and engaging for users.
Marketing: A Shift in Focus
In recent years, the focus of AR in banking has shifted towards marketing and promotional campaigns. Banks are partnering with brands in sports and fashion to create AR experiences that drive engagement and brand awareness. While these campaigns are short-lived, they showcase the potential of AR as a marketing tool in the industry.
The Future of AR in Banking and Payments
While some companies, like PayPal, still see AR-enabled payments as the future of the sector, the technology is not yet mature enough to support widespread adoption. The true value of AR in banking lies in its ability to convey information effectively and create engaging experiences for customers. Banks that can leverage AR to enhance their services and differentiate themselves from competitors will be the ones to succeed in the long run.
As the dust settles on the initial hype surrounding AR in banking and payments, it is clear that practicality and utility will be key drivers of success in this space. Banks that can find innovative ways to integrate AR into their offerings and provide real value to customers will be the ones to lead the way in this evolving landscape.
