BTL 738 - Gamification in Banking

 

The Banking Tutor’s Lessons

BTL 738                                                                            27-12-2024

Gamification in Banking

 

In short, gamification is a method of including game-like elements in web and mobile apps. It can benefit various industries, such as education, healthcare, wellness, retail, and finance and banking. UI/UX designers use gamification to make interfaces more engaging and inspire interactions, sharings, and reactions among users

 

Gamification in banking is a must-have to stay relevant, increase the conversion rate, and bring in new customers. More than 70% of the companies from the Global 2000 list use gamified elements in some way. It includes Bank of America, JPMorgan Chase, Wells Fargo, Bank of China, and many other role models of the banking industry.

 

Key Principles of Gamification

 

Gamification is based on fundamental human psychology. Many experts tried to break down why users enjoy interacting with game-like interfaces. Their suggestions vary from people’s need for recognition, reward, status, and achievement to the human desire for self-expression and altruism.

 

Studies helped figure out key principles of gamification that make it engaging and enjoyable.

Story or narrative

 

Creating a story around gives users a reason to care and makes them involved in the process. Unfolding the story forward can be a powerful motivation to keep opening the app.

 

Enhanced visuals and high interactivity

 

Eye-catching and visually pleasing elements draw the user’s attention and drive engagement. The more coherent and interactive the interface is, the less time the user will spend searching for a necessary button or action. It will directly influence customer satisfaction and retention rate.

 

Frequent feedback on progress

 

Give the users control of their own actions and provide real-time insights and suggestions on how to achieve the desired goal. The timely feedback with tips will help you form a better relationship with users and gain data on their behaviour patterns.

 

Sense of achievement

 

To maintain motivation, it is important to give away rewards or badges for achieving goals and milestones. Most apps also come up with quizzes and challenges to help users complete more tasks for rewards. 

 

Benefits of Gamification

 

Increased engagement level. Gamified elements turn mobile banking apps into creative and interactive platforms for exploring, learning, and accomplishing objectives. Naturally, it drives engagement.

 

Boost the retention rate. Gamification makes information absorption easy. Bills, due dates, balances, and accounts together with the game-like elements create a conducive environment for comprehending extensive data.

 

Attracts new clients. Gamification enables designers to be more creative and sparks curiosity among new users to test out-of-the-ordinary interfaces.

 

Stands you out for investors. Investors are looking for startups that are competitive in the market and provide a superior user experience. Gamified features will showcase your understanding of how to attract, engage, and retain users.

 

Challenges of Gamification

 

Keep the seriousness level. The banking industry is a serious matter, and it is important to maintain the balance between fun and intent. Users need to remember that in between challenges and rewards, your approach to their money is solemn and strictly professional.

Carefully decide what elements to gamify. Banking services cannot be a plain game. To find a middle ground, you need to intentionally choose where to introduce game features.

 

Target different groups of audiences at once. Digital banking solutions are used by people of diverse demographics, goals, and interests. When creating gamified experiences, it is vital to consider the differences and link up common themes and patterns.

 

Create a long-lasting experience. Gamification can transform banking into a personalized, enjoyable experience, but if the concept is overused and not adaptable, it can cause fatigue in the long run.

 

Examples of Gamification in Banking

 

Saving goals

 

Goal setting is a valuable feature for users to stay on track with their savings and progress. Virtual piggy banks can be much more effective for users. Setting up a goal can help them break the process down into smaller pieces of the puzzle. For example, track how much money is already in the money box or how much they need to save.

 

Budgeting

 

Though personal finances can seem scary and overwhelming from a distance, gamification is a great way to teach users financial literacy and establish positive spending habits.

Cashback and Rewards

 

To boost customer loyalty, gamification in the banking sector leans on cash back, a system of monetary rewards in which a user gets back a small amount of the total price paid. Usually, banks collaborate with retailers and companies to create such incentives.

Sekhar Pariti

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