How personal finance apps can win with Gamification
Gamification has been a modern trend in the tech world for a few years now. According to Statista, investments in Gamification are estimated to cross the $11.94 billion market value by 2022, and the financial service sector is accelerating its adoption of digital technology to provide a better customer experience.
Personal financial apps and digital services use gamification to encourage consumers to save money, plan their budget, and improve financial literacy. With this, users are more likely to meet their savings goals if they tap into their brain’s reward system via small steps of challenges, tasks, and achievable wins.
Gamifying personal finance apps:
In any industry, focusing on customer engagement is vital to the company’s success. Gamification in personal financial apps is the most effective way to achieve this purpose. Incorporating gaming elements in personal finance apps can create positive emotion, drive social relationships and generate a sense of accomplishment. Financial service providers are transforming their view of “banking as a service” to “banking as an experience.”
Gamification incorporates game mechanics into a non-game environment by creating challenges, competitions, and rewards around certain aspects of your life. Gamification finance apps frequently employ a “PLB” — points, leaderboards, and coupons — model to motivate customers and perform specific actions.
Gamification in the financial industry is mainly used to explain and solve complex topics to app users in simple words. It helps you collect more personal customer data to customize your services and offer a more personal approach leading to a better customer experience.
By employing the gamification concept, personal finance apps can achieve
- Incentivising the customers to save more
- Improved daily financial management
- Increased knowledge of financial services and products
- Reduced risk for claims on an insured product/service
Benefits of Gamification in personal finance apps
Savings with Gamification: Gamification encourages customers to save their finances. It enables customers to use the app and provides benefits such as rounding off the transactions whenever he uses the app. And the amount gets automatically transferred to their savings account.
Literacy through Gamification: Help your customers understand the challenging concepts in a fun and joyful way so that customers find it easy to use the app without any difficulty. Set financial limits and goals to let customers keep track of the transactions and plan their spending accordingly.
Form Communities: Allow customers to interact with each other on the same platform and unite them. Like refer, and earn concepts! It helps the customers socialize, and build a healthy lifestyle by sharing their experiences and knowledge.
Training and Motivation: Train and motivate customers through gamification, which is more beneficial than the traditional learning ways. This way, customers show enthusiasm to learn and discover the app features and understand the functionalities of how they can benefit from the application.
How does Gamification work?
People get conscious when money is involved and go through many finance management apps to save money. Personal finance apps can solve all the problems as well as provide an engaging experience. Gamification engages customers and helps customers overcome challenges, compete, seek cash rewards and build healthy money management.
Trivia — Trivia helps users engage in a fun and entertaining way. Interactive quizzes boost engagement and deliver personalized experiences in real-time.
Mini-games — Leverage games like spin the wheel card shuffle to engage users, educate them about your product, and understand their needs. These provide a fun experience and improve daily retention.
Examples of Personal finance apps growing customer base with Gamification
Fortune City: Fortune city app builds a virtual world using your financial data. Suppose a customer is spending his money ordering food from different restaurants or booking tickets for traveling. Restaurants, railways, or bus stops appear in your city. It builds a personalized town. It also represents customer habits and preferences, thus engaging the customers.
Ikano bank: This bank used a long-term strategy to attract customers by running a 3-week campaign with the game called Flappy saver, promising a cash prize of €10,000 to the highest scorer and seeing 1.5 million game sessions in 21 days.
Mono bank: Mono bank is used by over 13 million people every day. It opted for a badge reward system, where customers were highly motivated to unlock the badges they earned, increasing the app engagement.
Gamification is a growing trend; implementing this in personal finance apps creates better user engagement and levels up customer financial habits. Customers tend to share their fun and joyful experiences with friends and families. Developing and ensuring a gamified user experience in financial institutions can increase revenue while reducing churn.