If you still think that gaming is solely meant for entertainment purposes, it is time to rethink.
Thought to only appear in video games, game elements are now even reshaping the way businesses operate and deliver value. According to an HBR article, integrating game mechanics into software products increases customer engagement and retention rates by 5% and increases profits by 25% to 95%.
However, have you ever heard of gamification in banking? Yes, a sector possessing the characteristics of being private and highly regulated, like the banking industry, can still become more interesting with the help of gamification elements. By developing engaging challenges for customers in digital banking solutions and rewarding them with valuable incentives, mobile banking apps motivate customers to adopt healthy financial habits and improve their loyalty.
While quality is the number one factor determining the success of any gamified banking app, unique business ideas are equally important in attracting potential customers in the early stages. What are they? How are gamified components used in the banking sector? All will be revealed in this article.
The concept of gaming actually has been around for a long time, starting from the early 1950s. In the past, gaming was predominantly perceived as a form of entertainment, offering individuals an opportunity for enjoyment and leisure. However, the modern landscape, with the introduction of a series of new technologies and the exponential growth in smartphones in recent years, has greatly broadened the possibilities for gamification beyond mere entertainment.
Like every other field, the integration of game elements into banking services has completely changed the financial sector landscape in a positive direction. Game-like mechanics and components like rewards, badges, and challenges have helped financial institutions engage customers in interactive experiences and motivated them to adopt desirable financial habits like saving and budgeting.
However, the final purpose of gamification in banking is not to turn bank accounts into actual entertainment spaces but rather to enhance traditional banks with game mechanics to make everyday financial operations more enjoyable and to incentivize desired behaviors.
The incorporation of gamified elements into the banking sector is transforming the banking experience for real. In other words, gamification in banking brings forth a multitude of business benefits, such as:
Spanish bank BBVA introduced a BBVA Game call platform that allows users to receive movie tickets or music downloads by watching educational videos related to finance. Monobank has achievement programs that allow customers to complete simple tasks like using ApplePay for a transaction and earn up to 51 badges. These are just a few typical examples of gamification currently available in the gamification market.
Because there are so many successful gamification ideas in the banking sector, standing out from the crowd has become more challenging than ever. Although old ideas are a safe path because they allow you to learn from your predecessors, they lack creativity and make it difficult to leave your mark. On the contrary, new ideas help you differentiate yourself in the large market.
If you’re stuck in the gamification idea development stage, check out these eight creative ones below.
Savings goal achievements through gamification in banking refer to the concept of implementing modern systems that incentivize users as they progress towards their saving goals. Not only does it serve as a tool to help you control the progress of your savings account, but this gamification idea also creates motivation to make completing financial goals more enjoyable than ever.
One approach to the idea is to let users set specific savings targets, such as saving for an emergency fund or a vacation. Savings achievements will include many different small milestones. As users make progress and move closer to reaching these small milestones, they receive corresponding virtual badges or rewards as tangible indicators of their accomplishment.
Besides, you can integrate a feature that saves streaks and rewards participants for consistently saving money over consecutive days, weeks, or months.
The birth of many different e-commerce platforms with a variety of products for sale makes it easy for consumers to fall into a state of over-shopping, leading to budget overrun. Think about a feature that users can use to promote effective expense management. In this case, budgeting challenges are a gamification idea that makes all sense.
As a compelling strategy for personal financial management, budgeting challenges involve creating captivating budgeting missions that enable users to set personalized budget goals for various expense categories. Reward mechanisms for users who adhere to these budget limits can exist in many different forms, such as real-life rewards, redemption points, or extra benefits related to bank accounts.
No longer limited to individuals, you can also expand the scale of the gamification approach in banking by creating competitions between users, and cashback competition is an example. By developing a competitive environment centered around cashback rewards, you can motivate participants to actively engage with their banking activities and strive to maximize their cashback earnings, further boosting customer loyalty with your bank or credit union.
To implement this gamification idea in your financial institution, you need to carefully consider factors, including the competition rules, the mechanism for tracking and calculating cashback earnings, communication channels, and the rewards system. The cashback competition can also be integrated into a digital banking platform to provide needed real-time tracking and leaderboard display and create a sense of excitement.
There are many individuals who want to embark on the investment path but do not know where to start due to the overwhelming amount of knowledge and high risks. So why don’t you open a feature on banking apps that allows them to access a risk-free environment for practicing investment strategies?
By providing expertise such as investment principles, market dynamics, portfolio diversification strategies, and risk management techniques through virtual investment experiences, investment game simulations help increase user financial literacy and confidence in investment decision-making. Rewards for successful investment strategies within these simulations could be anything from virtual badges and recognition within the app community to tangible benefits like discounted services.
“Referral code” is probably a not-too-strange game feature in today’s new technology games. And you know what? The gamification idea of “referral code” can even be applied to online banking apps in the form of a contest.
In this approach, users are encouraged to compete in referring the most friends to the banking app. When friends become truly new users, which is determined by successfully downloading the app or creating an account, old users receive corresponding rewards. The competition element helps promote competition among participants and win the top prize. The referral contest not only provides existing users with a fun and interactive referral experience but also supports you in the process of customer base expansion through word-of-mouth recommendations.
Adding gamification features in the banking sector doesn’t always have to be complicated. Instead, you can make your financial app more interesting with just small details, helping users change their on-app avatar, for example.
Starting with a range of default appearance options, the idea of personalized financial avatars allows users to create customized avatars that symbolize their financial objectives, behaviors, and aspirations. As they progress towards accomplishing financial milestones, their personalized avatars can level up, opening up more new customization options and rewards. With personalized experiences on the banking apps used every day, these avatars establish a more emotional and relatable connection with their financial goals.
This feature performs best when integrated with a number of other features related to tasks and challenges, such as budgeting challenges and achievement of saving goals.
The integration of AI chatbot and virtual assistant within the banking app environment is a fairly common way for financial institutions to support users on-demand 24/7. By leveraging AI-driven technologies, AI chatbots deliver tailored financial advice based on users’ specific situations and behaviors.
To turn this digital companion into a gamified feature, you need to add a reward and incentive mechanism for users to complete recommended actions provided by the virtual assistant. Users may earn rewards, including points, badges, or other virtual incentives for taking proactive steps toward their financial well-being, ultimately contributing to the cultivation of positive financial habits and decision-making.
Turn your bank union into an interactive and educational platform. What do you think? Instead of organizing direct financial workshops, investment seminars, or budgeting boot camps that take up budget and effort, you can do it right on your gamified banking app.
The virtual financial events may cover a variety of topics such as investment strategies, budgeting tips, retirement planning, or other related financial literacy subjects, helping users supplement necessary knowledge within the app’s ecosystem. To increase engagement and excitement, you can offer participation rewards and exclusive in-app perks for screening.
Gamification in banking is no longer a new concept. It appears everywhere, across applications and services related to finance, and positively shapes users’ spending habits little by little. However, the era of gamified finance is just beginning.
More and more online banking apps are introducing new gamification-related features, leading to the rapid expansion of the global gamification market. Throughout the forecast period (2024-2029), Asia Pacific is projected to experience the highest CAGR. The fierce battle between players wishing to dominate the market has not stopped. It is the fusion of advanced technologies, such as artificial intelligence and big data that opens up a future full of possibilities for gamification in banking.
Having innovative business ideas is a solid foundation for the success of your next project. But don’t forget that a team of professionals with enough experience and necessary qualifications is an important factor in creating the quality of a software product. No more hiring needs; you can immediately reach your dream development team by contacting Orient Software.
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