Virtual and augmented reality in finance: State visibility of events and risk

Abstract

The recent financial crisis and its aftermath motivate our re-thinking of the role of Information and Communication Technologies (ICT) as a driver for change in global finance and a critical factor for success and sustainability. We attribute the recent financial crisis that hit the global market, causing a drastic economic slowdown and recession, to a lack of state visibility of risk, inadequate response to events, and a slow dynamic system adaptation to events. There is evidence that ICT is not yet appropriately developed to create business value and business intelligence capable of counteracting devastating events. The aim of this chapter is to assess the potential of Virtual Reality and Augmented Reality (VR / AR) technologies in supporting the dynamics of global financial systems and in addressing the grand challenges posed by unexpected events and crises. We overview, firstly, in this chapter traditional AR/VR uses. Secondly, we describe early attempts to use 3D/ VR / AR technologies in Finance. Thirdly, we consider the case study of mediating the visibility of the financial state and we explore the various dimensions of the problem. Fourthly, we assess the potential of AR / VR technologies in raising the perception of the financial state (including financial risk). We conclude the chapter with a summary and a research agenda to develop technologies capable of increasing the perception of the financial state and risk and counteracting devastating events.