Finances and games are not a natural pair—unless you’re talking about a trip to Las Vegas. Yet, for financial industry workers, gamification can be a creative and effective way to attract and retain new customers while standing out from a crowded competitive field.
Here’s all you need to know about gamification in finance, including the benefits, and how to incorporate gamification into your financial business.
What Is Gamification in Finance?
Financial institutions (including banks, investment firms, and personal financing apps) have been turning to creative methods to attract new customers, including gamification.
Gamification in finance uses games to make mundane financial tasks—like budget planning or savings goal setting—more interesting and engaging. Although the hype around this methodology may seem new, financial industries have been experimenting with gamification for over a decade, starting as early as 2011.
The Benefits of Gamification in Finance and Banking
Banks and other financial institutions rely on gamification to entice people to use their services. But. gamification in finance and banking can also be used to boost customer loyalty and train employees. Below is a detailed look at some of the gamification benefits for businesses in the financial sector:
Increased Consumer Engagement and Loyalty
Gamification in financial services can be used to improve customer engagement and loyalty. When customers play a game, they get a shot of the feel-good hormone dopamine, which helps to entice them to continue playing and interacting with a brand’s services.
Improved Customer Acquisition and Retention Rates
Gamification in finance makes it easier for businesses to acquire new customers. When customers enjoy using an app, they’re more likely to refer it to their friends.
Robinhood had success with acquisition and retention when they implemented a gamified referral program. When users referred a friend to the app, they would receive a share of a stock, including big-name companies like Apple and Facebook. Stock shares were rewarded at random, which motivated customers to keep referring to win more valuable shares.
Teaching Financial Literacy and Better Financial Management
Finance can be complicated. Through gamification, businesses can teach customers financial literacy without overwhelming them. Customers can have fun beating various “levels” while absorbing pertinent information at the same time.
Increased Employee Engagement
While the benefits of gamification in finance and banking often focus on consumers, gamification can be used to great effect with employees, too. Businesses that gamify training and goal setting often see a boost in employee engagement and a reduction in training time. Employees who are having fun are more likely to be engaged and learn quickly
The cloud-based SaaS platform Kaizo found this to be true when the cloud-based Saas platform gamified basic tasks, which boosted employee motivation.
Consumers sometimes need to be more open to handing over their personal data. Gamification can build trust and rapport between a business and its target audience, making consumers feel more comfortable providing personal details.
Emirates NBD, the largest government-owned bank in Dubai, was able to gather data from their customers while simultaneously rewarding them. They did this through a fitness app that let them open a “fitness account” offering higher interest rates based on physical activity.
The app worked on different fitness trackers, allowing the bank to gain insight into their customers' daily lives.
Gamification Examples in Financial Services
The financial sector has been harnessing the power of gamification for over a decade, leading to many success stories across the industry.
In addition to Robinhood, Kaizo, and Emirates NBD (detailed above), here are two more famous examples of gamification in financial services. They’re a simple way to illustrate how banks can use gamification to educate consumers, drive conversions, and increase customer engagement.
Extraco Bank Used Gamification to Educate Customers
Extraco Bank used gamification help customers gain knowledge about a new type of account they were adding. The game guided customers through the benefits of the new account, resulting in the bank’s conversion rates rising from 2% to 14% on the platform since the game was implemented.
Mint Used Gamification to Increase Customer Engagement
Another great example of gamification in financial services is the boost enjoyed by Mint. This personal finance app used a progress bar to keep users motivated to achieve their financial goals—like building up savings or following good money habits.
MonoBank Used Gamification to Drive New Business
Ukraine’s MonoBank used gamified strategies to engage with customers and increase their client base. Launched in 2017, this cat-themed digital bank incorporates a range of rewards and badges for completing certain activities, like using your card in a different city or hitting your savings targets. This gamified banking app was so successful, 10% of the Ukrainian population was using it within a year.
How Can Financial Businesses Implement Gamification?
When contemplating gamification in financial services, it’s always important to be strategic. If your game seems childish, overly complex, or has too many gamification mechanics, the strategy could backfire and lead to consumer distrust.
Below are several effective ways to implement gamification to ensure success:
Provide Educational Content
Gamification makes learning fun and engaging by encouraging active participation. It can also simplify complex topics by breaking them down into short “levels,” which helps make complex concepts easier to digest for users.
Use Progress Bars
A progress bar is a simple way to show customers how far they’ve come and how close they are to their reward. Customers appreciate knowing where they are in the process, especially when filling out lengthy forms or applications. Progress bars motivate people to remain engaged until they cross that finish line.
Leaderboards are an easy way to add an element of competition to a task. People love sharing their wins, which means more eyes on your business. Seeing others using your app will also add credibility and encourage them to join.
Everyone loves prizes! When gamification offers exciting rewards for finishing tasks, the user gets both the prize and the satisfaction that comes with accomplishment. Even small rewards can have a large impact, because a better experience means a user will stay loyal to your app.
Use CataBoom for Your Gamification Needs
With a prize engine encompassing over 200 types of games, CataBoom is the perfect gamification partner for any financial business. Whether you’re a bank that wants to encourage more people to open savings accounts, or a trading firm that needs to boost customer loyalty, CataBoom can create the perfect game for your audience and desired results.
Contact us today to schedule a demo of our gamification solutions!