VR & AR: Transforming the Fintech Landscape

Bradley Webb UX Research Analyst

19th July 2024 • 4min read

This was originally published as a New Insights article on 12th January 2024 exclusively for 11:FS Pulse users on the Pulse platform. Given this week's news that NatWest has made its banking app available on Apple Vision Pro, we thought it would only be right to make it available for everyone. 

Imagine a world

Where financial advice and market data come alive, transcending beyond screens into interactive, three-dimensional experiences. This is not a distant future; it is a reality shaped today by Virtual Reality (VR) and Augmented Reality (AR). These technologies promise to revolutionise industries such as healthcare, entertainment, and fintech.

AR enhances the real world by overlaying virtual information onto the physical environment, while VR creates a completely simulated environment. Although still in its early stages, VR in fintech shows immense potential for innovative user experiences and new market dynamics, reshaping access to and understanding of financial products and services.

The recent release of AR/VR headsets such as Meta Quest 3,  Microsoft HoloLens and the anticipated release of Apple’s Vision Pro, prompt intriguing questions about the future of the digital world, especially in digital financial services.

The Rising Tide of AR and VR in Digital Banking

A study by the Digital Banking Report has revealed that nearly half of all bankers foresee customers using AR or VR for banking by 2030. This insight is fuelling strategic investments in digital financial services centred around these technologies. For instance, South Korea’s Kookmin Bank, in partnership with Sharebox, has developed a virtual banking experience in VR for training and educating young adults.

Moreover, companies like Fidelity are using VR to develop 3D data visualisation tools for stock market traders. With Apple set to launch its Vision Pro this year, there’s growing anticipation about its impact on digital finance, especially considering Apple’s robust market presence and ventures like the Apple Card and savings accounts.

Emerging Trends and Predictions in Fintech’s VR/AR Evolution

Integrating VR and AR into fintech is poised to add a new dimension to UX within this sector. This advancement will markedly change the usability, visual design, and interaction with various financial services, including digital banking and investments. Let’s explore a few scenarios demonstrating how VR/AR technologies could transform the fintech landscape.

• Interactive Advising - AR and VR technologies could enable more interactive, personalised financial experiences. This advancement could transform customer consultations, enhance customer services, and make financial advice more accessible and engaging.
• ️Example: Picture AI-powered Avatar Robo advisors in virtual banks guiding users through financial decisions and accounts in real time.
• Financial literacy: These technologies could transform the landscape of financial education. Through First-Person View (FPV), these innovative tools are likely to provide immersive learning experiences that are engaging and informative.
• ️Example: Imagine immersing in VR, where you can vividly experience the lifestyle your future could hold, depending on your investment choices. Envision yourself in the driver's seat of a luxurious car or walking through the halls of a spacious house.

Alongside this, an AR feature integrates with your day-to-day life, offering live, personalised feedback aligned with your budget goals. As you navigate through a supermarket, it advises whether you can afford higher quality meat, or while planning an evening out, it suggests if a meal with friends fits your financial plan. This interactive and engaging approach provides a tangible, motivational glimpse into the potential outcomes of wise financial planning, aiding in strategic budgeting in the present and shaping your future lifestyle.

• Data Visualisation - The use of VR/AR could revolutionise the way we interact with financial data. Transforming intricate financial information into immersive 3D visualisations, these technologies will make it significantly easier for users to comprehend and engage with their financial data.
• ️Example: Citi’s “Holographic Workstation” was developed using Microsoft HoloLens and assists traders in understanding large data volumes without relying on flat screens. Fidelity Labs’ “StockCity” is also a VR tool that transforms stock portfolios into a 3D city, offering a unique visual representation of financial information.
• Gamification: Integrating VR and AR in fintech also brings a gamification aspect to financial services. By incorporating game-like elements, these technologies make managing finances more engaging and less intimidating, especially for younger or less experienced users.
• ️Example: Envision a VR-based savings program where users can grow a virtual garden that flourishes as they meet their savings goals. Each financial milestone could unlock new features or rewards in the virtual world, providing a fun and interactive way to encourage sound financial habits. 

Building on this idea, imagine incorporating elements that reflect the progress towards larger life goals, such as saving for a house deposit. This feature would highlight the importance of visualising and appreciating each small step, reinforcing how incremental savings contribute significantly towards achieving major financial milestones like homeownership.

Usability: A significant advantage of VR/AR in fintech is the enhancement of usability. Incorporating intuitive controls, like head movements and hand gestures, allows for a more spacious and seamless navigation experience within the virtual environment. This makes managing multiple accounts and financial operations more efficient and user-friendly.

️Example: Imagine a VR banking interface where turning your head can switch between different account views while hand gestures allow you to dive deeper into transactions, investments, or market trends. This approach makes financial management more intuitive and overcomes the limitations of screen size and traditional navigation methods.

Navigating the Challenges

While the integration of these technologies in fintech holds the potential to usher in an era of transformative user experiences and engagement, it is vital to temper this enthusiasm with a pragmatic understanding of the challenges ahead. 

Among these are the technical and accessibility limitations, where the cost and complexity of VR/AR technology could limit its widespread adoption. Additionally, issues such as data security and user privacy are of paramount importance in such immersive environments, especially within the sensitive domain of fintech. 

It is also crucial to recognise that these technologies will, for the foreseeable future, serve as an addition to, rather than a replacement for, mobile platforms. This is due to practical considerations, as individuals might not prefer using VR headsets for quick financial transactions like sending money. Therefore, while VR/AR holds the potential for a revolution in digital finance, realising this potential will involve overcoming various hurdles. 

The objective should be to create a transformation that is innovative and engaging but also secure, accessible, and in sync with existing mobile technologies, ensuring compliance with regulatory standards.

Thoughts for Consideration

As VR and AR technologies weave into the fabric of fintech, we must ponder: How will they transform the user experience (UX) in financial services? Will these advancements make financial management more intuitive and inclusive, or could they inadvertently create new barriers? The accurate measure of success for VR/AR in fintech will lie in their ability to enhance UX while ensuring accessibility and ease of use.

To further contextualise the transformative potential of VR and AR in the fintech sector, let’s delve into some excellent journeys from our Pulse platform. These examples showcase the cutting-edge features discussed earlier and highlight the immense potential for successful integration into AR or VR environments.

Robinhood - Exploring stocks

Robinhood stands out in the world of stock trading apps, expertly blending exceptional usability with a visually compelling design. It simplifies the complex world of stock prices with clear, easy-to-read line charts, enhanced by an intuitive colour system - green indicates an uptick in stock value, while red signals a downturn, aiding swift visual comprehension. Looking to the future, Robinhood has laid the foundation to expand into AR or VR, offering a more interactive and engaging user experience. Transforming these data visualisations into 3D charts that users can explore in their own space or within a fully immersive virtual world. This concept aligns with the developments shown by Fidelity, where environmental elements such as weather changes, rain for bearish trends and sunshine for bullish ones visually represent market dynamics. This immersive, intuitive visualisation could transform stock trading into a more accessible and engaging activity for users.

American Express - My Financial Plan

American Express is at the forefront of personal financial management with its Financial Planning Simulator, presenting intricate financial forecasting with a user-friendly interface. The simulator demystifies the complex financial planning process using straightforward visuals and interactive elements that project income and expenses across their lifetime, accounting for life events such as buying a house and having a baby. Clear graphical representations of income, expenses, and life events offer users a transparent view of their financial future. Envisioning this journey evolving into a VR experience could be groundbreaking. In an immersive virtual reality setting, users could engage with their financial projections in a much more visceral way. Envision a VR environment where users can walk the path of their financial timeline, with life events popping up as interactive milestones that illustrate the effect of each decision on their financial health. This interactive VR experience would not only enhance user understanding but also transform financial planning from a mundane task into an immersive and personal adventure.