From the simple habit of saving pennies in a piggy bank to investing in complex financial products, finance has long been a critical, albeit sometimes intimidating, part of our lives. However, imagine navigating this intricate financial universe with the same ease and excitement as playing a strategy video game, each achievement bringing you closer to your real-world financial goals.
This is no longer the stuff of fantasy but an evolving reality, thanks to the innovative convergence of gaming and finance. With the accelerated digital transformation caused by the pandemic, the introduction of Web3, Metaverse, and the emergence of digital banks, the finance industry has been reinventing itself and embracing gamification.
In this context, gamification is a fascinating topic to explore. What exactly is gamification in finance and banking, and how does it work?
What Is Gamification?
The term “gamification” refers to applying game theory and design to non-gaming contexts to increase participation and enthusiasm. It’s been integrated into several well-known platforms, including LinkedIn and Apple Watch.
Marketing, social networking, fitness, education, crowdfunding, military recruiting, and employee training are just some areas where gamification has proven useful. Even the Chinese government has adopted gamification in its Social Credit System.
Additionally, finance is a prime example of gamification, as it allows for easy measurement and visualization of financial data. This has actually led to the birth of the term: GameFi. By making mundane tasks enjoyable and effectively changing behavior, gamification has become essential in modern life.
How Does Gamification Work In Finance And Banking?
The banking industry is one of the first to benefit from gamification since it transforms mundane, repetitive processes into rewarding experiences based on reaching certain goals. In addition to improving customers’ involvement and familiarity with banking offerings, this strategy injects some lightheartedness into the customer-company relationship. By participating in these gamified activities, clients receive instant gratification, and some banks go the extra mile by offering social collaboration, multi-app integration, and other perks to enhance their service and brand awareness.
If you have doubts about the effectiveness of gamification in a severe financial business, it may be time to reconsider. Many leading financial institutions have already embraced gamification and are reaping its undeniable benefits.
How Gamification Improves Financial Systems?
The financial banking industry is known for its complexity and requires careful handling. In order to enhance customer engagement and motivate employees, banks are exploring new approaches. One such approach is gamification, which offers powerful tools to influence behavior and make traditional operations more enjoyable by incorporating gaming elements. This not only enhances customer engagement but also motivates employees.
In the financial sector, gamification has been found to enhance various aspects such as marketing, sales, talent management, and innovation. Banks can develop mobile apps with gamified challenges to educate users about safe online transactions and tax payments.
Users can earn points for completing these challenges, which can then be used to redeem rewards such as cashback, free upgrades, and exclusive services. These rewards are a form of currency that promotes future growth and innovation.
The Unique Advantages Of Gamification
Gamification has the potential to bring valuable benefits to both customers and businesses in the financial sector, such as:
- Gamification boosts web and mobile customer engagement by encouraging app usage and service interaction.
- Financial institutions can make banking processes easier to understand by incorporating enjoyable learning through gamification.
- Gamification can drive investment by motivating customers to save more, such as linking credit card spending to prize-linked savings.
- Loyal customers who are satisfied with financial institution services will likely recommend them to others, increasing visibility.
- Gathering valuable customer behavioral insights is crucial for brainstorming new business improvement ideas.
In order to gain customer loyalty and boost your financial business revenue, it is crucial to adopt a gamification approach that is helpful, clear, and enjoyable for your customers.
Critical Considerations For Financial Businesses When Implementing Gamification
Gamification is a highly effective method to motivate customers to increase their savings, acquire sound financial habits, and attract new customers. In addition, it enhances existing relationships, fortifies them, and provides innovative strategies to counter competition. Below are five proven and reliable gamification concepts for incorporating into banking and financial apps.
When it comes to online banking gamification and other financial apps, rewards are a powerful tool. And they don’t have to be extravagant to be effective. For instance, your app can incentivize and reward activities like saving money or using online banking instead of paper to reduce waste. And if your customers shop at your business, they can be rewarded with a gift voucher or something similar.
Enhanced Social Medea
By offering individuals the opportunity to share their experiences and advancements on a social media platform, businesses can foster a strong sense of community, facilitate interaction with like-minded individuals, boost brand recognition, and much more. While social media platforms are typically available to the public, there are also options for private, in-app settings for certain activities.
Easy Gaming Rules
In order to keep users engaged and encourage them to return, it is crucial to strike a balance between challenging gameplay and providing a sense of accomplishment. While keeping players on their toes is essential, ensuring that winning is attainable and rewarding is equally essential. By finding this middle ground, users will be motivated to continue their journey toward the ultimate rewards.
Regardless of your objectives, visually demonstrating people’s progress toward their destination or reward is essential. Progress bars, for instance, serve as compelling visual aids that effectively keep individuals motivated and focused on their ongoing tasks.
Many large and small businesses have successfully utilized puzzles, catch-and-scratch games, quizzes, and other interactive activities. Incorporating these engaging gamified methods can entertain your customers and provide valuable information to enhance their financial literacy. In addition, the use of rewards and badges should not be underestimated, as they have the power to motivate individuals to both learn and thoroughly engage with your product or service.
Gamification in finance and banking goes beyond mere point collection, rewards, or entertaining puzzles. Its actual value lies in the analytical data it generates, the growth of the client base, and the increased brand awareness it brings. Businesses are dedicating their resources to gamification for several compelling reasons: to effectively cater to customer needs, streamline their processes, offer an engaging customer experience, foster loyalty and brand recognition, and maintain a competitive edge.