Gamification: the secret sauce for Fintechs – Financial services are facing a 360-degree change in terms of digital transformation. According to a Gartner survey, more than 50% of financial services CIOs believe most businesses will operate through digital channels. These digital initiatives will generate more revenue and value, and this will make companies ask, what is the “secret sauce“?
Another challenge for fintech is user experience. A recent study provided by Deloitte says: 38% of customers state that user experience is the most important criteria when choosing a digital financial service.
Here we have two different challenges that Fintechs are facing these days. Hopefully, in the future, we will have the solution to solve these two challenges. But wait! What if this solution already existed? Yes, of course, I’m talking about gamification!
As we mentioned before, fintech is trying to increase customer engagement through digital offerings, and adding gamification to fintech solutions is one of the ways to meet the challenge.
As you already know, gamification use game mechanics and experience design to digitally engage and motivate people to achieve their goals. Through this, gamification has the power to help financial businesses engage users more effectively and turn routine tasks into fun and rewarding activities.
Now, you must be thinking “How can gamification be implemented in financial services? It’s simple! Gamification helps to attract users to an app and keeps them engaged in it for longer. Sounds simple, right? It is simple, but it is also a great benefit if you want to make your financial service more appealing or shape user behaviour.
Gamification in fintech intends to make app users more engaged and loyal to the financial service provider.
How gamification can leverage financial services?
Encouraging savings: Users can set saving goals and be rewarded for reaching them.
Boosting financial literacy: Sometimes learning about finances is not the first thing we want to do, but with gamification, learning can be fun. Games and short videos, for example, which explain complex financial concepts in a fun and engaging way.
Building community: Gamified software can help to create a community feeling and unite people who are users of the same financial service.
Promoting sustainability: Gamification can help businesses that aim to present themselves as more sustainable and ethical. For example, donating to a sustainable organization when a user meets a certain goal or completes a certain action.
Training and motivating staff: Gamification can be a powerful solution to engage and reward loyal customers, but it also can engage and motivate employees. Compared to traditional learning courses, they help users learn faster with less effort.
What are the basic gamification mechanics?
Some gamification mechanics can be used to increase customer engagement and keep them engaged for longer.
Goals: we talked about encouraging savings setting saving goals, these saving goals need to be reachable with reasonable effort. If they are too hard, users get frustrated, but on the other hand, if they’re too easy, users get bored.
Challenges: financial services can challenge their users to change their behaviours. These challenges will motivate your customers Imagine this scenario: if you bring five new customers to your financial company you will win some kind of reward. Will you, or will you not be motivated to achieve the challenge and win the reward?
Feedback: This one is very important. Feedback needs to be positive and constant. It should empower users to work harder on reaching the app milestones and goals.
Gamification is a great tool for boosting user engagement and improving customer loyalty. Financial services are facing a 360-degree turn in terms of digital transformation and gamification is definitely a growing trend. Those who implement it well will surely reap the benefits.