Augmented reality in Banking Industry
By: Dan Raghav
351074
Augmented reality is a programmed environment where a user can feel the details of the surroundings
just like the real world and perform some actions.
With the real-time environment, user’s impression of the digital world becomes realistic and feels like an
outstanding user experience. It makes the line between reality and illusion fade away.
These days startups are coming with Augmented reality in vegetables and grocery shopping. If such
personal user experiences can be enhanced AR, then institutions such as banks to revolutionize the
banking industry can also use the same. The possibilities are simply endless.
Impact of AR in Banking:
Digital-only banks and mobile banks are already here. But someday soon we may be able to go
to a virtual bank. If customers are not able to visit a physical branch location for whatever
reason, there will soon be given the possibility to go to a virtual branch.
Biometric security could be introduced in an AR system that could then connect with a VR world.
These could be used to access VR bank services, make ATM transactions, or make payments.
In banking, the major services provided to the individual customer are Mortgages, Debit cards,
Credit cards, Personal loans and savings and transactional accounts.
Each of the above areas may witness an increased influence of AR as each function will be
subject to change in the following ways:
Mortgages:
o Scanning using AR-enabled devices will provide real-time cost of any property available
for mortgaging to consumers.
o AR applications using geo-tagging and maps will provide real-time location of available
properties.
o A camera scan of a mortgaged property shall provide all necessary information, like the
borrower, lender, loan amount, terms, etc. to bankers.
Personal Loans:
o The impact of AR will be seen on personal banking with reduction in the paperwork
involved, and the individual presence of the customer in the bank, etc.
o Reduction of loan approval time, as business processes will be simplified for quick
decision making.
o Loan processing time and loan servicing time will reduce with the virtual bank as no
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physical presence of the customer will be required.
Debit Cards:
o Debit cards will become truly virtual with enhanced biometric- based security and AR-
based UI.
o Instant balance check, bill payments, map-based ATM locator, location of expenditure,
etc. may be achieved with ease.
o Advanced security and theft protection will be offered along with effortless payment
options while shopping.
Credit Cards:
o Credit cards will become truly virtual with advanced security against loss or theft.
o Easy payment options, collection, and recovery will become more systematic and user-
friendly.
o Instant tracking, easy user identification, and seamless connectivity with credit raters
will help banks to identify better credit opportunities.
Savings and transactional accounts:
o AR may generate a completely new channel for extremely convenient transactions
and payments.
o Advanced biometric-based security features will boost transactional security and
anti-money laundering (AML) monitoring.
o Savings accounts may offer additional add-on services with better usability
applications and will help banks in cross-selling.
AR in Banking Applications today:
MasterCard has partnered with Wearality to create a world where consumers can make
purchases without leaving the augmented world. They have an augmented reality golf
experience called ‘Priceless’ and players are able to buy clothing in the virtual world, without
having to do anything offline.
Many banks have developed AR-based apps that help customers to locate ATM branches. The
AR applications use the camera-captures from smartphones, use GPS, and provide users actual
location and branch distance.
Wells Fargo has officially admitted usage of google glass for consumer banking services.
A bank in North America has developed an AR application to scan dollar bills and convert them
into informational videos about bank products.
A major bank in China, offers customers a facility to collect coupons using AR, and also to avail
merchants' offers from his area.
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A few banks us property apps with AR to display real-time cost and associated relevant
information of properties which are up for sale, mortgage calculator tools, and mortgage
application assistant tools are available on the bundled app.
Advantages of Augmented Reality in banking:
Outstanding user experience
Reduced time to market
Business process improvement
Cost saving because of automation
Enhanced connectivity and integration.
Augmented reality can face the below challenges in the banking industry:
The biggest challenge for banks will be to safeguard the customer’s security.
API development for Augmented Reality applications will be extremely complex and time
consuming.
Integration with automation will be a major challenge in the initial phases.
Natural language process and machine- learning capability is necessary.
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References:
https://image.shutterstock.com/z/stock-photo-industry-augmented-reality-and-smart-logistic-
concept-hand-holding-tablet-with-ar-application-515658793.jpg
http://www.marxentlabs.com/augmented-reality-company-primer-5-types-augmented-reality-
companies
http://thefinancialbrand.com/39309/augmented-reality-place-bank-branches
https://en.wikipedia.org/wiki/Augmented_reality
https://pixabay.com/en/hololens-holo-lens-virtual-reality-1330225
http://www.charlotteobserver.com/news/business/banking/bank-watch-
blog/article69899107.html
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