Is Web 3.0 the Next Gold Mine?
As Web 2.0 nears the end of its innovation lifecycle, new computing possibilities of Web 3.0 are taking hold and are being developed as exponential technologies. Web 3.0,the metaverse and decentralized finance (DeFi), for instance, are expected to drive product innovation as well as develop new channel strategies across markets.
These technologies, as the shape the future of financial services, will fuel what could be a trillion-dollar market opportunity, according to Everest Group.
The next generation of internet, Web 3.0, is expected to disrupt the BFSI industry structure, such as decentralization and democratization of data, which will bring about new investing opportunities for enterprises and IT service providers.
For example, Web 3.0 has the potential to reduce the role of intermediaries and enable peer-to-peer interactions through decentralized systems, giving autonomous power and control to a participant by allowing them to control their data and identity themselves through NFTs and cryptocurrencies. Web 3.0 is key in enhancing and monetizing various use cases of the metaverse.
Metaverse creates a virtual community delivering immersive experiences, collaborations and employee training, and much more – we’re only starting to see what’s possible. To cater to a growing thirst for metaverse applications,, technology and services providers need to invest in next-generation technologies such as cloud, AI and blockchain to extract the best from Web 3.0 and metaverse.
DeFi leverages many of the same emerging technologies to build a connected yet decentralized financial system that offers services that are more accessible, resilient and transparent than centralized, middlemen-focused processes.
Knowing what Web 3.0, metaverse and DeFi collectively bring has prompted enterprises to increase their investment. The technologies have also increased customers demands for revamped payments, sophisticated financial products, ease of access to credit and smooth onboarding and advisory services.
“BFSI leaders recognize that these technologies are going to reshape their industry by transforming the way they interact and engage with customers,” said Ronak Doshi, partner at Everest Group. “And yet they are also cautious about role of intermediaries and decentralization as well as the speed with which policy makers can accommodate new business models with revamped regulatory approaches.”
For enterprises to get a piece of that trillion-dollar market, Everest Group advised enterprises to pay attention to developments in this area and to engage in strategic steps. A few of those steps are to:
- Understand the opportunities and threats that the Web 3.0 industry entails.
- Focus on enabling the proliferation of new products that combine VR, NFTs and the human being’s desires for social connection.
- Enhance technical and operational capabilities around cloud, blockchain, API and cybersecurity to generate business value from new channels and products.
- Leverage Web 3.0 and metaverse to gain market share by expanding offerings to include cross-border settlements, wholesale payments and decentralized brokerages.
- Co-innovate with technology and IT service providers to leverage their skilled talent pool on next-generation technology to achieve economies of scale.
Edited by Erik Linask
