🎯Strategic Plan for 2023
The opportunity
The digital economy today is estimated to be around 20-25 percent of the global economy. With this share expected to grow steadily and the emergence of a virtual economy growing within and alongside the digital economy, the size of the metaverse opportunity to be USD8-10 trillion on average, according to global investment bankers. The opportunities primarily emanate from the emerging web 3.0 technologies on the one hand, and the observed and ever-growing preference of the millennials to interact and transact in the digital and virtual space. The trends are discernible in several Islamic nations as well that consider the development of a halal ecosystem as a policy imperative. While the metaverse currently attracts most users primarily for getting rid of boredom, having new experiences, having fun, and establishing social interaction, It is also seen as a revolutionary change bringing in social good, for instance, through transformation of the education sector. This paper focuses specifically on the metaverse opportunity for the ethical and Islamic banking and financial sector. This requires adoption by the sector of (a) immersive technologies, such as, virtual reality, augmented reality and (b) blockchain technologies with or without cryptos. A recent global research study on bankers about emerging trends - to provide their projections as to what will happen in the future and when – has some interesting findings. 47 percent of the banker community believed that “virtual and augmented reality will be used by 20 percent of consumers as an alternative channel for daily transactions” by 2030. And 52 percent believed that “blockchain and DLT will be used by more than 75 percent of FIs” by 2030.
The key drivers
The new metaverse involves web 3.0 technologies like DLT or blockchain and AI and enhances the scope of a metaverse way beyond gaming. A simple way to differentiate between web 1.0/ web 2.0 and web 3.0 is to distinguish between our ability as users of the internet (1) to read; (2) to read and write; and (3) to read, write and own. Web1 was mainly a read-only web version filled with simple static websites. Web2, the current iteration of the internet emphasizes creating and distributing user-generated content. As a result of Web2’s autonomy in content production, the free flow of user data and information has led to centralized corporations seeking to monetize user data and habits. The concerns about user exploitation and data control have led to the emergence of Web3. The goal of Web3 is to encourage open services driven by decentralized applications rather than centralized apps controlled by the tech giants.
The rising popularity of metaverse platforms is attributable to the growing global adoption of essential technologies that enhance both the infrastructure and the user experience in these realms. Regarding connectivity, the number of Internet users around the world is increasing. By 2030, it is projected to increase by 56% to roughly 7.5 billion. Augmented/virtual/mixed reality (AR/VR/MR) technologies are driving user immersion in two ways. The AR/VR/MR market is projected to increase by more than 800% to around USD 150 billion by 2030, easing access to virtual worlds. In addition, enabling technologies such as DLT (distributed ledger technology) and digital assets boost the efficiency of capital and data transactions in virtual ecosystems. By 2030, it is anticipated that Web3 / crypto assets would increase by more than 700% to roughly USD 9.2 trillion.
Potential for Islamic Institutions
Potential applications of Netverse as a halal metaverse for Islamic institutions include:
Virtual financial and/or education centers: Islamic institutions could use the Netverse to establish virtual financial and/or education centers where customers can access education/ financial services in a virtual environment. These virtual centers may be able to provide many of the same services as physical centers, but with the added benefit of being accessible from anywhere in the world. Islamic institutions may also use Netverse technology to create virtual branches or offices where customers can interact with financial or educational advisors or other staff in a virtual environment. These virtual branches may be able to provide a more personalized and convenient consumer or client experience while reducing the need for physical infrastructure and overhead costs.
Virtual events: Islamic institutions could use the Netverse to host virtual events like conferences, seminars, and trade shows, allowing attendees to attend from anywhere in the world.
Virtual training: Islamic institutions could use the Netverse to provide virtual training and development for their employees, allowing them to learn new skills and knowledge in a virtual setting.
Virtual collaboration: Islamic institutions could use Netverse to facilitate employee and partner collaboration and communication, allowing them to collaborate in a virtual environment as if they were in the same physical location.
Virtual marketing: Islamic institutions could use the Netverse to create virtual marketing campaigns that would allow them to reach out to new customers and engage with existing ones in a virtual setting.
Unique Value Propositions
Convenience: Netverse enables people to access education/ financial services and participate in events, training, and collaboration from anywhere in the world, making it easier for customers and employees to do business.
Cost savings: Using the Netverse may save Islamic institutions money on expenses associated with physical locations and travel, such as rent, utilities, and transportation.
Increased engagement: Netverse enables Islamic institutions to create more immersive and interactive experiences, which can increase engagement and make complex concepts and ideas easier to communicate.
Global reach: Netverse enables Islamic institutions to reach a global audience, increasing their potential customer base and growth potential.
Increased efficiency: By allowing Islamic institutions to streamline processes and reduce the need for physical interactions and paperwork, Netverse can potentially increase efficiency.
A few major components of IBF Net’s plan for 2023 with respect to Netverse include
expansion of the community, targeted to cross the threshold of 100,000 by end of the year covering all major university campuses that teach Islamic economics, business and finance across the globe;
democratisation of the network through constitution of a broad based governance council comprising eminent professors and researchers; senior lecturers and trainers; managers, senior bankers and finance professionals, qualified Shariah scholars, and IT professionals interested in the field of Islamic business and finance and halal ecosystem.
instituting and incentivising a transparent online voting system for election of commissioners to various panels - dedicated to specific components of the IBF ecosystem to play an important role in the programs and activities of the IBF Net community.
design and offering an ambitious learning program in Islamic economics, business and finance for students at senior school and pre-university levels;
gamification of contents within existing courses and certification programs;
expanding the scope of the existing portfolio of courses to be offered by external trainers.
integrating more AI-based solutions (like IRSHAD) with Netverse so that Islamic institutions can set up shops to offer various customer-centric services.
The implementation of these plans would require additional financial resources. IBF Net is poised to launch a fund-raising campaign through a public sale of IBFN, its native and in-verse token, followed by a sale and lease of virtual space and invitation to institutional and individual investors to contribute to its capital.
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