How gamification works: Fintech examples
Gamification is one of the most effective tools for attracting customers. It works well for the banking sector, e-commerce, and healthcare. And some of the first to apply this approach were representatives of the financial segment.
Elements of gamification include consumer favorites such as point accumulation, bonuses, and cashback. They encourage customers to make new purchases and use apps to do so. As a result, businesses get loyal customers, and with them, increased transactions and profits.
In 2022, the global gamification market was worth more than $10.5 billion. Analysts predict it will reach nearly $97 billion by 2030.
Gamification works great for increasing sales of banking products. This is evidenced by the example of the Commonwealth Bank of Australia, which used the tool for its real estate investment arm. The bank developed its own online game, which allowed users to sell or buy different objects, demonstrating the benefits of such acquisitions. As a result, it is estimated that the number of loans increased significantly. In just one year, the bank’s clients took out more than 600 loans totaling $400,000.
The UAE’s largest financial institution created its own fitness app to improve the savings culture. While exercising, people received useful tips to help them save money. The app offered to open a special account and link it to fitness trackers. If a person met their workout goal for the day, they received a reward, such as an interest rate increase. In this way, the bank was able to increase the number of new customers.
Gamification is primarily designed for young consumers who like to have fun and perform various interactions in a playful way. Through this mechanism, the company gets good feedback from the target audience. The game helps to uncover customers’ needs, interests, and challenges. For example, CRED has developed an application that analyzes the financial situation of users – the number of transactions, their types, and payment characteristics. Based on this information, financial institutions can offer new products that best meet customers’ needs.
Banks are interested in financially literate consumers who understand how the system works, know what they want, and are aware of the risks. Interacting with such customers reduces the risk of payment arrears, problem loans, and other problems that affect the bank’s profits. Various applications help to raise the awareness of the target audience – mainly young people. The main point of gamification is to constantly motivate customers to do one thing or another. For example, the accumulation of points contributes to the fact that the user will sooner or later want to spend them by making a purchase through the app. Such small incentives increase loyalty and help to retain customers for a long time.