Games aren’t the first association we make when we think of financial services apps(!) but gamification is transforming this. If you aren’t familiar, gamification is the process of adding games or game-like elements in an app to improve engagement.
Gamification is rapidly emerging as an important strategy within fintech, even if entertainment doesn’t have the most obvious link to financial services. After all, no one will check their bank account for fun! However, this is all part of the online experience and gamification rewards in fintech plays a crucial role in customer engagement and retention.
The benefits of gamification
Gamification is the shrewd application of various features in an online experience that encourage our online behaviour. People play online games because they enjoy these processes, and unlocking prizes and features can also unlock dopamine in our brains.
This is especially crucial in fintech where startups desperately need to reach a critical mass of users, especially in their early days. These companies need people to sign up, stay and – importantly – refer others to join. Gamified fintech apps are a great way to unlock this.
A great example of gamification in fintech is Monobank, a hugely successful neobank based in Ukraine. Since 2017 this fintech has gained over six million loyal customers with 1.3 million using the Monobank app every single day. Aside from having good, secure banking features and performing well as a fintech first and foremost, the app has a fun reward system that uses gamification to encourage participation.
By using different Monobank features, customers can unlock different reward badges. This motivates them to continue unlocking badges as people don’t want to see greyed-out features when they know they could unlock them. This is a classic fintech gamification strategy, and such rewards can be linked to real, tangible rewards – like with Starbucks, if you gain enough loyalty points you are able to access offers that others cannot.
You’re probably now thinking more overtly about gamification. When you next unlock your phone, look over the apps you use most often and consider where gamification strategies are in actuality changing your behaviour. And it’s no wonder when we take into consideration how much of a behavioural nudges through gamification can have on a business’s bottom line. For instance, gamification can provide an increase in sales margin of up to 45% with a market size expected to reach $49bn by 2028. This kind of engagement is crucial, especially when we consider how constantly our attention is being pulled in different directions.
Gamification and younger customers
This point about using gamification to grasp customers’ attention is especially true of younger generations. It’s often discussed that younger people have shorter attention spans, but it goes beyond these TikTok assumptions. Customers in Gen Z are more likely to be savvy around digital experiences and therefore quicker to ‘cut to the chase’ as it were – traditional engagement and onboarding strategies therefore do not work.
With digital natives like this, and appealing to Gen Z fintech customers, gamification is the best strategy to engage with them. It is important that fintech is able to engage with these younger generations, not simply because it makes good business sense but also due to the fact these customers have a starker need for financial services products and services. For instance, a survey of attitudes to finance among different age groups found Baby Boomers to feel the most financially secure with 34% feeling this way. In contrast, only 18% felt this way. Therefore, gamification can play an important role in engaging with younger customers.
This extends beyond simply fostering brand loyalty. Gamification strategies can also be used to improve financial education, encouraging younger customers to view and consume educational content as part of a rewards programme.
Making gamification work
Like any customer engagement strategy, a lot has to be put into gamification to make it work. Here are the three main concerns fintechs will likely come up against when integrating gamification features:
These are important considerations to get right, but once they are seen to, gamification can provide a great way to strengthen brand loyalty, grow user numbers and connect to a wider audience – especially those that fintech has struggled to connect with in the past. Simply put, gamification is a serious way to growth for fintech and not just about playing games!
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