10 Use Cases of How Augmented Reality is Changing the Way Consumers Interact with Banking and Financial Services
By Udit Agarwal
Augmented Reality (AR) is revolutionizing the banking and financial services industry by enhancing customer engagement, streamlining operations, and offering immersive experiences. AR is reshaping how consumers access and manage their finances, from virtual bank branches to interactive financial tools. According to a 2021 report by Juniper Research, AR in the financial sector is projected to reach $4.1 billion by 2024 as banks increasingly integrate AR-powered solutions. Significant players like BNP Paribas have already launched Augmented Reality -based apps that allow customers to visualize account data and financial trends, highlighting the growing demand for innovative, technology-driven financial services.
Virtual Branches
Traditional bank branches are evolving, with AR creating virtual branches that customers can access from the comfort of their homes. Through AR applications, consumers can interact with bank representatives in a virtual environment, conduct transactions, and access financial services without visiting a physical location. This approach enhances convenience and reduces the need for physical infrastructure.
Enhanced Customer Support
Augmented Reality is improving customer support by enabling more interactive and personalized experiences. Customers can use Augmented Reality applications to connect with support agents through video calls where agents can overlay visual instructions on the user’s screen. This feature is handy for troubleshooting complex issues and guiding users step-by-step in resolving problems efficiently.
Interactive Product Demos
Banks and financial institutions leverage AR to provide interactive demonstrations of their products and services. For instance, customers can use Augmented Reality to visualize how different investment options could impact their portfolios over time. This immersive experience helps customers make more informed decisions, leading to better financial outcomes.
Personalized Financial Planning
Augmented Reality enables personalized financial planning by allowing customers to visualize their financial goals and progress more engagingly. Users can interact with 3D models representing their savings, investments, and expenses, making it easier to understand complex financial concepts. This interactive approach encourages customers to take a more active role in managing their finances.
BNP Paribas, one of Europe’s largest banks, launched an innovative AR-powered mobile app to enhance customer experience. The app allows users to visualize their account data in 3D, providing an interactive view of transactions, savings, and investment trends. Customers can scan their surroundings using their smartphone camera and overlay financial data, making tracking spending and savings goals easier. This Augmented Reality feature has led to a 20% increase in customer engagement, offering a more personalized and intuitive way to manage finances.
Augmented Reality ATMs
Augmented Reality transforms how consumers interact with ATMs by overlaying digital information on the physical machine. Customers can use their smartphones to access an AR interface that provides instructions, balance updates, and transaction options, all without physically touching the ATM. This innovation enhances security and convenience, especially in the post-pandemic world where contactless interactions are preferred.
Virtual Financial Advisors
AR brings financial advisors into the virtual space, allowing customers to receive personalized advice without visiting a branch. Through AR applications, users can interact with a virtual advisor who provides tailored financial guidance based on the user’s goals and preferences. This approach makes financial advice more accessible and convenient for a broader audience.
AR-Driven Marketing Campaigns
Financial institutions use AR to create engaging marketing campaigns that capture consumer attention and drive brand loyalty. For example, AR can create interactive advertisements where users can scan a QR code and experience a 3D visualization of a new product or service. This immersive experience increases engagement and makes marketing efforts more memorable.
Improved Financial Literacy
AR enhances financial literacy by making learning more interactive and engaging. AR-powered educational apps can teach users about budgeting, saving, investing, and other economic concepts through gamified experiences. By visualizing these concepts in a real-world context, users can better understand and apply financial knowledge in their daily lives.
Real-Time Account Management
AR enables real-time account management by overlaying account information directly onto the user’s environment. Customers can use AR applications to view their account balance, recent transactions. And spending patterns by simply pointing their smartphone at their debit or credit card. This real-time visibility empowers users to manage their finances more effectively and make informed decisions.
The Commonwealth Bank of Australia (CBA) integrated AR into its banking app to provide customers with immersive property insights. Users can point their smartphone cameras at a property for sale, and the AR feature overlays real-time information such as property value, historical price trends, and nearby listings. This has significantly streamlined the home-buying process for customers, offering a more interactive experience. Since launching the feature, CBA has reported a 15% rise in the use of its property search tools. Underscoring the power of AR to transform financial services.
Also Read: AI Recruiting – How Artificial Intelligence is Revolutionizing Talent Sourcing and Hiring
Fraud Prevention and Security
Security is a top priority in the financial sector, and AR is enhancing fraud prevention by providing additional layers of protection. For example, AR can be used to verify the authenticity of documents or signatures. By overlaying validation markers on the physical document. Additionally, Augmented Reality-powered facial recognition can be used for secure and seamless identity verification during transactions.
Conclusion
Augmented Reality is revolutionizing the banking and financial services industry by providing innovative solutions that enhance customer engagement, improve financial literacy, and streamline operations. As AR technology continues to evolve, its impact on the financial sector will only grow, offering new opportunities for banks and financial institutions to differentiate themselves in a competitive market. These ten use cases illustrate how Augmented Reality transforms the consumer experience. Paving the way for a more interactive, efficient, and secure future in banking and financial services.
Ready to take your banking experience to the next level? Explore how AR can make managing your finances more accessible, interactive, and insightful. Whether it’s tracking your spending or making informed investment decisions, Augmented Reality-driven tools are transforming the financial landscape. Don’t miss out on the future of banking—contact us today to discover how AR solutions can enhance your financial journey.