2022
9
UK Financial Services and the Metaverse Market Report 2022
2022-12-06T03:05:37+00:00
OX1100585
2195
158213
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Report
en_GB
“The metaverse is in its infancy and will be focused on gaming, entertainment and commerce for some time. However, there is a major role for financial providers to play in…

UK Financial Services and the Metaverse Market Report 2022

£ 2,195 (Excl.Tax)

Description

The UK Financial Services and the Metaverse Market Report examines consumers’ awareness of the metaverse, attitudes towards using financial services in the metaverse and barriers to usage. The report covers the latest industry trends and innovations, the potential of financial services in the metaverse, and expert analysis from leading researchers.

Financial Services in the Metaverse: Current landscape

The metaverse is a long-term project in its infancy, but inflation and the rising cost of living will still have an impact on the market. Ownership of virtual reality headsets will need to grow for widespread adoption, yet this will not be a priority for many households due to a financial squeeze. Companies such as Meta seem committed to metaverse investment, but the difficult economic environment could limit some brands’ involvement.

 

Financial Services in the Metaverse: Key industry trends

Mintel’s financial services and the metaverse market analysis outlines that perceptions of the metaverse for financial services are more negative than positive. Although it is viewed as futuristic, it is also deemed unnecessary and gimmicky. This scepticism is particularly prevalent in older demographics.

The key will be moving this interest beyond a novel curiosity and towards a regular channel for financial services. Proof of concept will be vital, however, considerable progress will also need to be made regarding access points and headset ownership.

  • 50% of Brits describe their feelings towards the metaverse as neither positive nor negative which reflects a general lack of awareness.
  • 69% of UK adults who are aware of the metaverse show interest in using it for financial services.
  • 44% of consumers are concerned about banking security in the metaverse.
  • 63% of UK adults agree that the metaverse is better suited to gaming than financial services.

 

Financial Services in the Metaverse: Future trends

In the longer term, there are strong opportunities for banks and other financial providers as the metaverse expands, even if it remains focused on gaming and commerce for some time. Although financial services in the virtual world are some way off, there will still be an important role to play in the payments market and verifying identification. Seamless payments in the virtual world will require new forms of security, potentially extended to registering avatars with card or mobile wallet access. Banks will play a role in educating and guiding consumers on staying safe in the metaverse and avoiding scams.

To discover more about the UK Financial Services and the Metaverse Market Report 2022, read our UK Virtual Reality Market Report 2022, or take a look at our Financial Services Market Research Reports.

 

Quickly Understand

  • Overall awareness and consumer interest in the metaverse.
  • Outlines which financial services in the metaverse consumers are interested in trying.
  • Barriers to using financial services in the metaverse.
  • Preferred payment options within the metaverse.
  • Consumer perceptions and attitudes towards financial services in the metaverse.
  • Explores headset household ownership.

 

Covered in this Report

Brands: Google, Meta (Facebook, Horizon Worlds, Meta Quest Pro, Oculus), BBC, FIFA, HSBC, Decentraland, Sandbox, JP Morgan, Microsoft, Kookmin Bank, Apple, MoonPay, PayPal, Mastercard.

 

Expert Analysis from a Specialist in the Financial Sector

This report, written by Adrian Reynolds, a leading analyst in the financial services sector, delivers in-depth commentary and analysis to highlight current trends in the metaverse and add expert context to the numbers.

The metaverse is in its infancy and will be focused on gaming, entertainment and commerce for some time. However, there is a major role for financial providers to play in the payments and verification market. Longer term, as the technology evolves, there is interest in using the metaverse for a range of financial services. It is vital such applications go beyond short-term novelty and offer a new channel of communication to enhance services.”

Adrian Reynolds

Adrian Reynolds
Senior Analyst – Financial Services

 

Table of Contents

  1. Overview

      • Key issues covered in this Report
        • Products covered in this Report
          • The metaverse
          • Executive Summary

              • The market
                • What is the metaverse?
                  • Consumers are split on whether the metaverse is positive or negative
                    • Figure 1: Sentiment towards the metaverse, 2022
                  • Interest in the metaverse is far higher than before Facebook’s announcement
                    • Figure 2: Google searches for the word ‘metaverse’, 2021-22
                  • Metaverse announcements have not driven VR headset ownership
                    • Figure 3: VR headset household ownership, 2017-22
                  • The consumer
                    • Metaverse brands must boost consumer understanding
                      • Figure 4: Awareness of the metaverse, 2022
                    • Create high profile experiences to boost interest
                      • Figure 5: Interest in using the metaverse, 2022
                    • There are long-term metaverse opportunities for financial providers
                      • Figure 6: Financial activities in the metaverse, 2022
                    • Consumers need to see proof of concept
                      • Figure 7: Barriers to using the metaverse, 2022
                    • Many consumers will need convincing over metaverse payment security
                      • Figure 8: Metaverse payment methods, 2022
                    • Financial services providers can build a futuristic brand image
                      • Figure 9: Perceptions of the metaverse in financial services, 2022
                    • Banks can engage with young customers through the metaverse
                      • Metaverse banks should complement rather than replace branches
                        • Target tech-savvy gamers with VR headsets on premium accounts
                          • Figure 10: Attitudes towards the metaverse in financial services, 2022
                      • Issues and Insights

                        • Banks can lead the way in metaverse payments
                          • Help keep consumers safe from scams as metaverse tech evolves
                            • The metaverse offers opportunities for brand building and advertising…
                              • …before providing potential for long term innovation in financial services
                                • Metaverse virtual branches could offer premium 24/7 customer services
                                • Market Background

                                  • What is the metaverse?
                                    • Metaverse technology must prove sustainability credentials to gain traction
                                      • Consumers are split on whether the metaverse is positive or negative
                                        • Figure 11: Sentiment towards the metaverse, 2022
                                    • Market Drivers

                                      • Interest in the metaverse is far higher than before Facebook’s announcement
                                        • Figure 12: Google searches for the word ‘metaverse’, 2021-22
                                      • Metaverse discussion continues to thrive on social media
                                        • Figure 13: Mentions of the #metaverse on social media, 2021-22
                                      • Accessibility will be vital to long-term metaverse use
                                        • Figure 14: Meta on metaverse inclusivity, 2022
                                      • Metaverse announcements have not driven VR headset ownership
                                        • Figure 15: VR headset household ownership, 2017-22
                                      • There is early interest in metaverse banking
                                        • Figure 16: Interest in metaverse activities, 2022
                                    • Competitive Strategies and Launch Activity

                                      • JP Morgan opens Onyx Lounge in Decentraland
                                        • HSBC makes metaverse move partnering with The Sandbox
                                          • HSBC offers its first sporting content in the metaverse
                                            • Meta and Microsoft continue to expand early metaverse platforms
                                              • Meta announced the rollout of Horizon Worlds to more European countries including France and Spain in August 2022, although it remains only available in English. Horizon Worlds is described as an immersive social experience where you can explore, play and create together. However, there is growing emphasis beyond entertainment with long-term aims to include business applications. For financial providers, a presence in Horizon Worlds may seem a long way off. Meta started testing in-app purchasing in April 2022, however, and banks will need to stay on top of innovations in the payments and digital security markets. Meta estimated that the platform had about 300,000 global users in February 2022.
                                                • Figure 17: Meta avatars
                                              • Meta launches new headset but price point will limit take-up
                                                • Figure 18: Meta Quest Pro
                                              • Business applications are a growing theme in the metaverse
                                                • Figure 19: Microsoft teams virtual meeting
                                            • Metaverse Awareness and Interest

                                              • Metaverse brands must boost consumer understanding
                                                • Figure 20: Awareness of the metaverse, 2022
                                              • Younger consumers will be the natural adopters of the technology
                                                • Figure 21: Awareness of the metaverse, by age, 2022
                                              • Create high profile experiences to boost interest
                                                • Figure 22: Interest in using the metaverse, 2022
                                              • Focus on metaverse access points for younger consumers
                                                • Figure 23: Interest in using the metaverse, by age and gender, 2022
                                            • Financial Activities in the Metaverse

                                              • There are long-term metaverse opportunities for financial providers
                                                • Focus metaverse customer services on fee-paying accounts
                                                  • Figure 24: Financial activities in the metaverse, 2022
                                                • Men will be the key market for metaverse investment platforms
                                                  • Metaverse investment applications will appeal to younger consumers
                                                    • Figure 25: Investment activities in the metaverse, by age, 2022
                                                  • Financial applications in the metaverse must go beyond novelty
                                                    • Figure 26: Repertoire of activities in the metaverse, by age, 2022
                                                • Barriers to Using the Metaverse

                                                  • Consumers need to see proof of concept
                                                    • Financial providers must offer real benefits with metaverse services
                                                      • Figure 27: Barriers to using the metaverse, 2022
                                                    • Banks will need to ease security concerns
                                                      • Utilise avatars in the metaverse to enhance human interaction
                                                        • Figure 28: Barriers to using the metaverse, by age, 2022
                                                    • Payments in the Metaverse

                                                      • Many consumers will need convincing over metaverse payment security
                                                        • Online and mobile wallets are well-placed to lead the way
                                                          • Mastercard is already looking into metaverse payments
                                                            • Figure 29: Metaverse payment methods, 2022
                                                          • Younger consumers are more open to existing payment options
                                                            • Figure 30: Metaverse payment methods, by age, 2022
                                                        • Perceptions of the Metaverse in Financial Services

                                                          • Financial services providers can build a futuristic brand image
                                                            • There is a risk for banks with metaverse perceptions skewing negative
                                                              • Figure 31: Perceptions of the metaverse in financial services, 2022
                                                            • Perceptions are far more positive amongst younger consumers
                                                              • Figure 32: Perceptions of the metaverse in financial services, by age, 2022
                                                          • Attitudes towards the Metaverse and Financial Services

                                                            • Banks can engage with young customers through the metaverse…
                                                              • …but should be careful with direct investment in the short term
                                                                • Figure 33: Attitudes towards the metaverse in financial services, 2022
                                                              • Metaverse banks should complement rather than replace branches
                                                                  • Figure 34: Attitudes towards the metaverse and bank branches, by age, 2022
                                                                • Banks investing in the metaverse should offer in-branch experiences
                                                                  • Figure 35: Financial Services and the Metaverse– CHAID – Tree output, 2022
                                                                • Target tech-savvy gamers with VR headsets on premium accounts
                                                                  • Figure 36: Attitudes towards fee-paying accounts with VR headsets, by age, 2022
                                                              • Appendix – Data Sources, Abbreviations and Supporting Information

                                                                  • Abbreviations
                                                                    • Consumer research methodology
                                                                    • Appendix – CHAID analysis

                                                                      • Methodology
                                                                        • Figure 37: Financial Services and the Metaverse – CHAID – Table output, August 2022

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