In early January, the Wall Street Journal reported that accounting and advisory firm Prager Metis International LLC had opened a new office. On the surface, the story is nothing exceptional. The firm already has 23 offices that stretch across the U.S., Asia, and Europe.
What makes the acquisition of this three-story property newsworthy is its location. Prager Metis’ new office is located in the metaverse.
Financial Businesses Are Moving to the Metaverse
A company spokesperson for Prager Metis explained his firm’s move as a way to head off the shift toward the metaverse. If the idea is for the new digital space to replace the internet, then businesses clearly want in on the action — including financial institutions.
In the case of Prager Metis, the idea is to get ahead of the curve by scooping up what could eventually be very valuable real estate. The company dropped a cool $35,000 on its three levels of digital doors and windows. The purchase was made in December and the company is already busy trying to create a functional entity in the metaverse.
While Prager Metis’ news has made the headlines today, though, they’re not the only company thinking along these lines. The Wall Street Journal reports multiple entities in the financial sector that are angling toward the metaverse. While it isn’t a mass movement quite yet, the desire to explore the financial potential of the metaverse is clearly there — and with good reason, too.
The digital world has been an extremely profitable area for years now. Statista reports that the video game market alone stood at $178 billion in 2021 and has the potential to pass $268 billion in four short years.
The money is there and there’s no doubt that consumer attention is shifting toward the metaverse. The question that has to be asked is what kind of tangible value the metaverse can offer to financial professionals.
The Potential of the Metaverse for the Finance Sector
It’s easy to brush off the metaverse as a glorified way to look at video gaming and entertainment. However, there are many ways that a digital world, separated from yet integrated into time and space, can impact more serious parts of life.
This isn’t a new idea, either. Many financial activities have been virtual for a while now. Online banking, mobile check deposit, and direct payment apps like Venmo are common.
However, the move toward a full-blown digital reality heralds a larger shift in the financial world. Rather than merely streamlining existing monetary transactions, this new shift could change the entire modus operandi for financial activities.
Unique additions to the financial world, such as cryptocurrencies and NFTs, are setting the tone for what a digital-only financial environment could look like. The metaverse can take these trends and accelerate their adoption. Fintech also has the potential to impact the metaverse by:
- Creating and governing the infrastructure for financial transactions.
- Expanding the audience that can directly interact with a real-world entity.
- Changing business models at a rudimentary level.
Many of these will take years to play out. Even so, there’s no doubt that the potential of the metaverse, specifically as it relates to fintech and financial services, is otherworldly.
Blazing the Trail for Financial Services in the Metaverse
While there is plenty of opportunity for financial services in the metaverse, the reality is that there’s a long road ahead. Along with initial investments and adjusting to new technologies, there are many concerns that come with the new territory.
One of these is the issue of jurisdiction, such as in the case of two parties from different countries and legal systems signing a contract. Data protection and identity theft are also very real concerns.
Pioneering this vast new universe won’t be easy, which is why innovative thinkers are needed. That’s where Stanton Chase Los Angeles comes into the picture.
“For some professionals, the metaverse falls somewhere between the fantasy world of a video game and the virtual reality we have adopted to function and thrive in the Covid-impacted world,”Peter Deragon, Managing Partner Stanton Chase LA
“For some professionals, the metaverse falls somewhere between the fantasy world of a video game and the virtual reality we have adopted to function and thrive in the Covid-impacted world,” says the firm’s Managing Director Peter Deragon, “As a financial services professional with significant perspective developed over 40 years of functioning in this sector, I naturally focus on who and how governance structures can limit new levels of risk, how to identify and verify counterparties in transactions, data security, and how to develop the intellectual capital and leadership advantage to utilize the features and benefits of a flood of innovation and choices. To thrive now, we accept a mandate to continue on the path of life-long learning, and integrate what proves to be beneficial.”
We may not have all of the answers to the financial potential of the metaverse — but Deragon and his team know how to recruit the individuals who can find them.
Stanton Chase LA has already helped place countless executives in the financial sector. As the metaverse becomes more of a reality, we’re ready to assess your team and discover what talent gaps and areas of unfulfilled potential need to be addressed as we all prepare ourselves for a future where digital and physical realities meet on a consistent basis.