Understanding the Digital Revolution: VR's Impact on Banking

This report explores the potential impact of Virtual Reality (VR) on the banking industry. It defines VR and its applications, highlighting its use in creating immersive experiences for customers and employees. The report discusses the current adoption of VR and augmented reality (AR) in banking, including virtual apps, tools for financial management, and marketing strategies. It examines the role of VR in enhancing customer service, offering personalized experiences, and improving operational efficiency. The report also addresses the impact of VR on banking processes, including customer interactions, service delivery, and security. It analyzes the importance of VR in the banking sector, focusing on how it can transform the customer experience, streamline processes, and provide innovative financial solutions. The report further explores the regulatory and ethical considerations surrounding VR implementation and its potential disruptive effects on the banking sector. By analyzing the changes in the banking sector, the report highlights the need for systematic development and innovative solutions to meet the evolving needs of customers, particularly millennials, who expect advanced technology and self-service options. Finally, the report includes figures illustrating the differences in banking processes before and after the integration of VR.

Running head: UNDERSTANDING THE DIGITAL REVOLUTION
The Potential Impact of Virtual Reality on the Banking Industry
Name of Student-
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Author’s Note-

2UNDERSTANDING THE DIGITAL REVOLUTION
Part One: Research
Virtual Reality: The concept of Virtual reality is considered as artificial environment
which is created with a software and are presented to users in a way where the user suspends
their beliefs and starts accepting the artificial environment as a real one (Huang et al., 2016). For
a computer system, virtual reality can be experienced through two senses: that is sound and sight.
A simple form of the virtual reality is the 3-D image. This helps to explore the interactively at
personal computer, by manipulating all the keys or mouse for moving the content of images that
moves in other direction r can be zoom in or zoom out. Sophisticated efforts that are involved in
the virtual reality involves many approaches as display screens that are wrap-around, the actual
rooms that are augmented with the wearable computers, and the haptics device that lets to feel
display images.
The virtual reality is generally divided into two factors:
 Simulation of real environment for education as well as training.
 Developing an imagined environment for the game or for the interactive story.
There is a language known as VRML (Virtual Reality Modelling Language) that helps to
creator for specifying the images as well as rules of display as well as interaction using the
statements of textual languages.
Banking Industry:
Most of the banks uses the concept of Virtual Reality to runs its processes (Han et al.,
017). Virtual reality in the banking sector is important because it helps to turn uninspiring
numbers or the dry concepts to a rich as well as meaningful experience. The virtual reality in the

3UNDERSTANDING THE DIGITAL REVOLUTION
banking sector helps to create a vivid imagery that helps to engage both left sides as well as right
sides of the human brains.
There are many banks as well as credit unions that pioneers tests with the emerging
technology of virtual reality. The banks are creating virtual Reality apps which showcases the
solutions of digital banking in the artificial 3D environments (Sia, Soh & Weill, 2016). Some of
the banks create tools that helps the people for managing the finances. Others are using this
concept as marketing tool for generating the PR buzz. Notions of Virtual Reality in the banking
sector are most certainly in their infancy and there is a long way for this application to become a
true mainstream.
Part Two: Brainstorming
One of the factors that impacts on the banking sector is that there are more millennials
who are becoming customers. This new generation of customers expects as well as needs
different types of technology that mostly differs from the predecessors (Pająk, Kamińska &
Kvilinskyi, 2016). The millennials mostly wants self-service and also have a tendency that helps
to boost the banking adoption on the banking AR solutions.
This tendency of the customer will help to redefine the experience of the customer in the
banking. The technology of the virtual reality is very innovative and also helps to ensure quick as
well as provides accuracy and service provision. By adopting the technology of virtual reality,
augmented reality is also used in the banking sectors that helps the customers in different ways.
With the adoption of AR, the virtual reality is mow becoming more affordable in all other
sectors. There are headsets that are available and using the applications are very easy to make.

4UNDERSTANDING THE DIGITAL REVOLUTION
Other sectors that uses virtual reality is the health care sectors. The virtual reality is used
in the health care centers helps to manage the chronic pain of the people in the health care
centers. The researchers use the virtual reality technology for treating the patients. This allows
the patients for focusing on the alternative reality instead of focusing on the pain. This helps to
reduce the inhaling of the painkillers for the patients.
Part Three: Regulation and Ethics
The Virtual Reality in an innovative technology which helps in quick service as well as in
accuracy of the technology that is used. The adoption of the augmented reality provides lot more
than virtual reality. Banks from all the parts of the world have starting experimenting the
technology of virtual reality and started using multiple applications that are possible (Martono et
al., 2016). This was not possible few years back. The reality application helps the customers to
locate their nearest branch or the nearest ATM. The customers can get the detail address of the
bank from the virtual reality. With the help of the virtual reality application, the banks can send
their customers the offers and the deals that are bank provides to the customers. The using of
camera in the smartphones helps in bringing the surrounding of the real life and also involvement
of the augmented reality projection.
The CBA (Commonwealth Bank of Australia) has developed a same kind of development
for the banks. The application of AR is more specialized. It helps to target the customer of the
banks for buying and the selling process of a home. Involvement of rich data with an augmented
reality helps to provide many historical environment about the property that is to be sold, current
listings, price tendencies and the previous information about the sales history of the property
(Coburn, Freeman & Salmon, 2017). The capital growth that actually trends and all other

5UNDERSTANDING THE DIGITAL REVOLUTION
financial metrics that are accessible helps to allow the interest rate of the individuals in the real
estate or making the sale smart and also helps in making purchases decisions.
Part Four: Disruption
The changes in process of the banking sector helps in dynamism changes that occurs in
space of social-economic for determining the need of the systematic development understanding
all the innovative solutions that are needed for the banking sector. Almost 46% of the total
population of the world uses the technology of internet and 31% of the people declares that they
stay always active on the social media (Ohta & Tamura, 2014). There is no rationally corporate
strategy that helps to omit potential technologies of the computer. Advanced solutions are
adapted by the banking sector services in the virtual reality. All the industries from the
developers of the video games to the healthcare management service uses the concept of virtual
reality. They use innovative ideas of virtual reality in the healthcare services and use them in day
to day services. The implementation of the concept of the virtual reality is the banking sector
helps in generating competitive advantage in the market (Parise, Guinan & Kafka, 2016). This
virtual reality helps to present different aspects of the application, increase the market trends as
well as forecasts the subsequent development of the phenomenon.

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Figure 1: Banking Processes before Involvement of Virtual Reality
(Source: Created by Author on Visio)
Figure 2: Banking Processes after Involvement of Virtual Reality
(Source: Created by Author on Visio)

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