In my last blog post, Exponential Technology to Reshape Financial Industry, I took a closer look at artificial intelligence and quantum computing, a couple of the exponential technologies I discussed during my 2015 TMG Executive Summit opening remarks.
Like artificial intelligence and quantum computing, virtual and augmented reality have great potential to drive innovation within the financial sector. With virtual reality, specifically, we are seeing the technology move from the gaming universe into other industries. Designed to give people deep, visceral, real-life experiences, virtual reality will soon be used to trigger certain behaviors.
It’s a fascinating concept, and one my family and I got to experience at the Iowa State Fair just a few weeks ago. My alma mater, Iowa State University, had an Oculus Rift headset at the fair and allowed visitors to try it on. What an experience for both the wearer and the watcher! When you saw from the outside what people were experiencing inside the headset, you got a very clear picture of the immersive qualities of virtual reality. Many people had to be physically held in place as they experienced the thrill of riding a roller coaster in virtual reality – while in true reality, they were simply standing in a tradeshow display booth.
Augmented reality, a cousin of virtual reality, is showing more immediate use cases, however. Whereas virtual reality aims to take people out of real life as much as possible, augmented reality blends virtual reality and real life.
Often, we struggle to get consumers to really “see” their financial futures. With the help of augmented reality, that will become easier. Augmented reality will transform financial content from boring or uninspiring to vivid and immersive. Try getting a Millennial consumer into a branch to sign up for a retirement savings account. Not likely, right? But what if we could help the consumer visualize him or herself down the road with an augmented reality experience?
A prominent investment bank is doing exactly that right now, applying augmented reality technology to wealth management. The bank has built an interactive retirement planning app that helps users visualize their journey toward retirement. Early studies of the application show consumers, when shown computer-generated versions of themselves at retirement age, are more willing to accept later financial rewards over immediate ones.
My next post will explore sensors and robotics, including how innovators are blending the later with virtual and augmented reality to achieve the ultimate consumer experience.
WHAT IT MEANS:
We’re living in a world of information and communication abundance that no one could have predicted. Think about this: A Masai warrior on a smartphone in the middle of Kenya has better mobile communication than President Clinton did 15 years ago. For that to happen, innovators had to reimagine. They had to envision the impossible.
WHAT’S NEXT:
To fully realize the potential of exponential technologies, it’s important for financial institution (FI) leaders to open their minds wider than ever before. We must let our imagination run with the possibilities innovation and integration can bring to an FI and the consumers we serve. What other ways can we leverage technologies like virtual and augmented reality to drive financial services innovation?