Augmented reality is getting a strong look from some financial institutions that want to embrace technology but worry that
With AR, consumers can superimpose moving images on the real world around them by using a smartphone app, rather than donning a dedicated headset to immerse themselves in a digital environment as is typical with VR.
To be sure, some experts are skeptical that customers care much about AR.
"When we ask people how they shop for financial products and think about brand choice, the role of AR and the metaverse in those journeys is minimal or nonexistent," said Peter Wannemacher, principal analyst in digital banking at the research and consulting firm Forrester. "I don't see any evidence that being tech-forward is inherently valuable to customers as they make decisions."
Yet some financial institutions — from national names like Ally Financial in Detroit to smaller players such as Workers Credit Union in Littleton, Massachusetts — contend that AR has been a good investment that generates positive buzz about their brand and turns the spotlight on their products and services.
Ally has jazzed up several campaigns in recent years
The $197 billion-asset bank's latest foray into AR took place in the spring of 2022. Ally and the creative agency R/GA crafted an immersive AR experience through the instant messaging app Snapchat to promote Ally's partnership with Milestone Media, the company behind Milestone Comics, and DC Comics, its publisher and distributor. Their joint effort, called the Milestone Initiative, aimed to relaunch Milestone Comics, foster a new generation of diverse comic creators and revive interest in Milestone superheroes, many of whom are diverse.
"People are choosing brands for more than just products. They want to make sure it aligns with their values," said Beth Woodruff, senior director of branding strategy, integrations, gaming and innovation at Ally. "Much of what we were looking to do with that initiative was to live out our values, making sure people saw us as a brand that could create pathways for diverse talent."
Once Snapchat users clicked on a unique filter, a tunnel that stretched four stories upward sprung to life around them. They could ascend each level in a "portal" and learn about different Milestone superheroes along the way.
Bank of America and TD Bank are finding that new employees and interns respond well to onboarding and training that takes place in the magical worlds of virtual reality.
"There is a lot of hype around Apple creating spatial computing," said Woodruff. "But we think there is a lot of AR potential right now with your phone."
Ally is experimenting with ways beyond AR to let people "commune in a digital space," as Woodruff puts it. For instance, Ally used the Fortnite Creative mode to build an "island," in this case a futuristic e-sports arena, under the Fortnite video game umbrella that it launched in April. Visitors can play games or watch content streamed live, such as the Rocket League championships, on a "llama-tron," or video player. Most recently, Ally used technology called Unreal Engine from Fortnite's developer Epic Games to replicate NASCAR driver Alex Bowman's No. 48 car on a new space within Ally Arena called 48 Island. Visitors can race the car; a recent contest enticed people to beat Bowman's score by dangling a chance to win a VIP experience at a NASCAR event. Games played in Ally Arena increased from around 1,000 plays per week to 6,000 per week after the introduction of 48 Island in June.
Workers Credit Union is also pleased with its foray into AR this past summer.
The $2.6 billion-asset credit union launched a game in partnership with the Worcester Red Sox, a minor league baseball team and affiliate of the Boston Red Sox. Visitors to a WooSox game at Polar Park in Worcester, Massachusetts, could download a free mobile app called Workers Reality and point their phones at targets mounted in four locations to bring an "experience" to life and potentially win prizes.
For instance, activating the target emblazoned with a QR code and a picture of first baseman Triston Casas conjured up stirring music and video clips of him hitting a long drive and high-fiving teammates as he rounded the bases in slow motion.
The credit union built this feature with the help of Link To VR, an extended-reality media agency, and marketing agency LTI Business Solutions.
"Banking is a fairly conservative industry," said Liz Hayes, chief member experience officer at Workers. "We want to be seen as
The community feel, the nostalgia of attending local games and the novel way of connecting with players were also appealing.
"Members are looking for ways to interact with their credit union beyond cashing a check," she said. "They want to interact with their money in a manner that is hosted by technology but still allows for human connection."
In August, the credit union reported that hundreds of people interacted with the app and entered to win WooSox season tickets. "On AR days [games with Workers Credit Union staff in attendance], the Workers team has been able to connect with thousands of fans and talk with them both about Workers Reality and Workers Credit Union in general, with an average game attendance of close to 8,000," Caroline Santangelo, senior vice president of marketing and product performance at Workers, said in an email. The institution also promoted several products over the summer with WooSox imagery, including a Home Run CD that it says was one of Workers Credit Union's most successful product promotions of the year.
Workers is figuring out how to extend Workers Reality beyond this first run. Members can still play around with the old baseball targets now displayed in the credit union's branches.
