How augmented reality technology is shaping the future of retail, banking and hospitality

Innovations in augmented reality (AR) technology are blurring the lines between physical and digital realities. Through smartphones and other digital devices, consumers can wear products virtually, receive financial advice or even see how meals will look before ever stepping foot inside a restaurant—and the potential for what AR can deliver virtually is just beginning.

AR technology allows users to experience “an enhanced version of the real physical world.” The technology really hit the mainstream in 2016, when “Pokemon Go” saw millions of users around the world journeying out to capture digital creatures overlaid on the physical world through their smartphone cameras. The technology works by adding visual, sound or other sensory elements that don’t exist physically to what people see and hear through enabled devices. 

Now, AR has moved far beyond the days of Pokemon Go—fundamentally changing the way we can shop, bank and dine. Here’s a look at what it’s doing for each industry.

Lacoste lets customers virtually try on shoes using augmented reality technology.

In some ways, the financial industry is behind retail when it comes to digitization, but consumers want the same digital-first experience in their banking, too. So adopting new technologies is important to keep up with digital demands as the customer experience evolves. That’s why many financial institutions are using AR technology to blur the lines between brick-and-mortar and digital banking—giving customers greater support and payment experiences through technological innovation.

Consumers love the convenience and ease of banking online, but they still want to count on in-branch assistance for more complex financial advice and for smaller transactions, too. Major financial institutions are using AR technology to offer that balance.

Starting in 2018, Wells Fargo designed its own augmented reality experience through which customers can get real-time banking assistance from a human teller within a virtual space. And not only can their customers perform transactions, they can also play video games and do puzzles because according to Jennifer Copeland, vice president and experiential marketing manager at Wells Fargo they wanted to show their customers ““There’s more to us than financial products. We are able to show you a good time.” It’s a great example of how AR not only brings your customers more ease and convenience, you can increase customer engagement, too.

Comarch, a Polish fin tech, is using smart wearables (like smart watches), smart phones and headsets to deliver an “AR ecosystem.” The interaction starts by a bank staff member reaching out to a customer via their smart watch who then turns to their smart phone for more information and eventually an AR enabled headset where the customer can have a virtual meeting with the banking staff member and the customer’s entire portfolio is laid out in stunning graphics.  

So with experiences like that will bank branches become obsolete? Not likely. Customers want access to whatever banking form matches their specific needs. And when money is on the line, nothing beats human interaction. As John Aves writes in CustomerThink: “Customers still want personalized face-to-face interactions and help with more complex financial decision making...Best-in-class banks recognize that branch innovation sits at the crossroads where the physical is fused with digital to create a seamless, differentiated experience in the new normal.”

Alongside the ability to receive human assistance virtually, augmented reality phone applications can help users locate ATMs and bank branches—including directions and distance—all by using the smartphone camera to scan the street. These apps can also convey information about services and offers that are curated for each specific user. 

Augmented reality technology guides users to ATMs and bank branches.

Payment card security and digital banking access are also improved through AR technology. Improvements to biometric security and the advent of virtual credit cards will help deliver peace of mind and frictionless payment experiences to customers, too.

Related: Humanizing digital banking through conversational AI

Augmented reality technology allows customers to undergo a full sensory experience, from a restaurant’s ambiance to playing AR tabletop games with friends and family, and even viewing their meal being virtually prepared. This all makes dining out more exciting and enjoyable through the use of technological innovation.

The dining experience, digitized

Going out to eat is something most people enjoy, but they always want it to be convenient and if it’s not, they may have a bad experience. To help with this, Visa has integrated locating and paying at a restaurant using AR technology. Their application allows users to choose a food outlet from a layered map, then browse the menu and—if they want to—complete payment before ever stepping foot in the restaurant.

Once they’ve arrived at their desired dining destination, restaurants can use augmented reality technology to deliver a truly immersive end-to-end dining experience. 

First, restaurant patrons can scope out a restaurant’s layout in augmented reality and reserve their ideal seating arrangement ahead of time. Users can then enjoy AR tabletop games to pass the time while they get settled in—a great way to beat restlessness, especially for families with young kids.

Next, orders can be completely customized, with AR allowing users to select ingredients and garnishes and even visualize how the meal will look when it arrives. This leaves no chance for misunderstanding between the front of house and kitchen, so meals come out perfect every time.