OBSERVATIONS FROM THE FINTECH SNARK TANK
When Apple speaks, people listen—and pundits pontificate.
The pundits came out in force after Apple announced the Vision Pro, a mixed reality headset. Apple describes the Vision Pro as a “spatial computer that seamlessly blends digital content with the physical world.” According to its website, with Vision Pro:
“You have an infinite canvas that transforms how you use the apps you love. Arrange apps anywhere and scale them to the perfect size, making the workspace of your dreams a reality—all while staying present in the world around you.”
Uh, ok. I can do that already with my MacBook, Tim.
Scott Galloway, the NYU professor and popular blogger and podcaster, is clearly pessimistic about the prospects for Apple’s new product:
“I believe the Vision Pro will be remembered as a Neanderthal, an evolutionary dead end—a heavy, thick-browed experimental species destined for extinction.”
On the other side of the coin, Michael McGrath, writing in Seeking Alpha, called the Vision Pro “a groundbreaking spatial computing platform that has the potential to revolutionize various industries, from entertainment to remote work” and wrote:
“It seems like almost everyone is missing the real strategic importance of the Apple Vision Pro. It’s not a VR/AR headset—it’s the computing platform of the future.”
McGrath believes “everyone” will (eventually) want a Vision Pro to:
- Watch movies on a large and 3-D screen. McGrath says that the Vision Pro will cannibalize the big-screen TV market because “everybody who enjoys watching movies and videos will want a Vision Pro instead of a larger TV.” Well, except those of us that like to watch movies and videos with other people.
- Do videoconferencing. According to McGrath, “You can replace video conferencing with a life-size experience like people are in the room.” Great—so the people I videoconference will be able to really see that I look like crap. People who don’t like to go to on camera on Zoom calls now will not like life-size Vision Pro videoconferencing.
- Travel the world. McGrath writes that with a Vision Pro “you can get the experience of traveling everywhere with all of the sights full size and in 3-D. Everybody who wants to travel more but doesn’t have the money or time will buy a Vision Pro.” Doubtful. A seven-night Caribbean cruise costs between $424 and $1,158 per person. At the low end of that range, I can take eight cruises for the price of one Vision Pro.
Will The Vision Pro Impact Banking?
Experts speculated on what the Vision Pro could do in the banking industry, as well. Federico De Simoni, Chief Commercial Officer at fintech Reworth, wrote that the device could:
“Enable bankers to create more personalized and immersive experiences for their clients. For instance, bankers could use the device to present customized investment opportunities or financial plans in a three-dimensional, interactive format.”
I guess they could, but they do this to some extent today—minus the “immersive 3-D” part—and it hasn’t had much of an impact at all. So why would it work in an “immersive 3-D” environment? Is that the missing ingredient? I don’t think so.
De Simoni also imagines that “a client could use the Vision Pro to have a virtual meeting with their banker, making the interaction more convenient and efficient.”
We have that ability today. It’s called Facetime, and it’s hardly revolutionized bank customer service.
De Simoni explains that the Vision Pro’s 3-D camera could “capture and present data in a more engaging and comprehensible way.” Maybe, but that isn’t why today’s face-to-face meeting aren’t more impactful.
The Vision Pro Won’t Revolutionize Banking—Yet
Galloway’s (typically spot-on) analysis—i.e., takedown—of the Vision Pro reveals an interesting angle: That Apple might not care if the product sells well as long as the product forces Meta into a corner:
“Zuckerberg is spending the GDP of a small country to invent the metaverse where Apple doesn’t own the roads or power stations. Vision Pro is insurance against the metaverse evolving into anything more than an incel panic room.”
In the short run that might be the case, but Apple’s modus operandi tends to look further out and patiently build growth.
Yes, the iPhone took off like a wildfire, but not Apple Pay. That service took years to gain traction, and recently, with broader adoption, the company has launched Apple Cash, Apple Card, and Apple Pay Later. With—no doubt—a lot more banking-related tricks up its sleeve.
The history of technology adoption over the past 25 years provides insight into how—and when—the Vision Pro will impact banking: After it impacts other industries.
The online channel impacted the retail, entertainment, and communication industry long before it had an impact on banking, and it was a similar story with the mobile channel (and device).
Augmented and/or virtual reality devices won’t make it’s mark on the banking industry before it does other industries for two big reasons:
- The form factor has major limitations. There’s a reason why Apple limited Vision Pro reviewers to just 30 minutes with the device—it would have made them dizzy and given them headaches if they had kept it on longer. After spending time with a VR headset on to shop and get entertained, will we extend that time to bank? Not with the product as is.
- Banking isn’t that important to people. The great paradox in financial services is that money is really really really important to us, yet we still choose to spend more time deciding what movie to go see, what restaurant to eat at, and what video game to play than we do managing our money.
The potential use cases people are coming up with for a Vision Pro in banking are simply not very compelling. They don’t solve the real problems people have with money management and the device doesn’t add any degree of convenience which is a big driver of technology adoption in banking.
After the Vision Pro revolutionizes retail, travel, and entertainment—and after Apple releases Vision Pro Contact Lenses—then let’s talk about the Vision Pro revolutionizing the banking industry.
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