DBS Group Holdings of Singapore is the latest major corporation to consider entering the rapidly developing Metaverse. DBS’s Chief Information Officer, Jimmy Ng, stated that the bank is studying ways to deliver banking services in the virtual world. He continued by stating that they are aggressively investing in the bank’s digital transformation.
DBS intends to enter the Metaverse with a $730 million technology fund.
Jimmy Ng said in an interview with Nikkei Asia that Southeast Asia’s largest bank is continuing its annual investment of 1 billion Singapore dollars ($730 million) on technology-related projects. Over the last decade, the bank has invested heavily in cloud computing and artificial intelligence.
Ng stated that they are researching the evolving digital realm, and the Metaverse is one of those options. While Ng would not share specific intentions, he did allude to a possible NFT offering. Digital asset sales have increased significantly in 2022, and the DBS believes this is one area they can capitalise on.
According to DBS’s CIO, blockchain-related technologies are gaining traction and will prove to be game changers for the industry. DBS’s digital services are used by 60% of its clients.
Despite CEO Piyush Gupta’s opinion that cryptocurrency will eventually become a store of value comparable to gold, the bank has no intentions to offer crypto trading to its retail clients.
Banks are drawn to the metaverse
Over the last two years, the Metaverse and NFTs have developed into a potential investment space. Global financial organisations such as JP Morgan and HSBC have already made their first forays into the virtual world. JP Morgan just established a lounge in the Decentraland Metaverse for its users. The lounge of the American financial behemoth included a portrait of CEO Jamie Dimon, a tiger, and a spiral staircase.
HSBC purchased a block of land on another Metaverse world, The Sandbox, last month. Siam Commercial Bank, Thailand’s largest lender, also recently established a virtual headquarters in the metaverse.
While major banks’ metaverse projects have thus far focused on enhancing client interaction, they have stated an interest in eventually offering financial services via the metaverse. However, it is unknown how they intend to accomplish this.
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.
