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    Gamification in Financial Services by Equitech

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    Gamification can be defined as the use of game mechanics and experience design to digitally engage and motivate people to achieve their goals. The gamification implements game-like mechanics and dynamics into different environments, such as for businesses, online communities, workplaces, customers and company websites. Game-like dynamics include competition, progress, collaboration and rewards.

    Mechanics on the other hand relate to points, badges, levels, leaderboards and other processes and elements that make up a game.

    The aim is to engage the customers, employees, partners, so they are inspired and encouraged to achieve target goals. The financial services industry is no exception. Companies in the field have started incorporating elements of gaming into the way they function – a process known as “Gamification”.

    Gamification in  Numbers

    The gamification market size is reported to be growing and is projected to rise from $6.33 billion in 2019 to $37 billion by 2027, some suggest that this is at a Compounded Annual Growth Rate (CAGR) of 24.8% during the forecasted period. The key drivers for market growth are the rising adoption of AI-based and cloud-based gamification solutions by large enterprises and SMEs. Walmart for example, uses VR gamification to onboard and train employees. Participants are presented with real-life situations in areas such as new technology and customer services, which eliminates the need to recreate them physically in stores.

    Gamified solutions can be implemented for a company’s internal use in the recruiting, onboarding and coaching processes, as well as in building knowledge and engaging employees. According to Noble Systems research, employees that use gamification are 90% more productive, employee engagement increases by 48% and about 72% of employees believe they are inspired to work harder.

    Gamification can also be used for customer-facing scenarios. Companies can use it to educate and engage clients, as well as to offer more innovative, personalized products and services. This can help build customer trust and loyalty, and also improve service acceptance and usage. Albeit, in the case of some companies like Robinhood, this needs to be undertaken with a bit of caution.

    Use Cases for Gamification

    Recently a story about Samsung and how they launched a gamified social loyalty program to engage their already existing customer base was released. The gamification resulted in a 66% increase in site visitors, 30% increase in comments, and astonishing 500% increase in customer product reviews.

    There are several successful examples from the Fintech industry as well.

    To promote its online banking services, BBVA launched an app with educational videos, that allows customers to earn points, that can be redeemed for products and services. By doing so, the bank managed to improve customer retention.

    Commbank of Australia introduced a game that lets customers experience a simulation of buying and owning a property. They can practice activities such as applying for different types of mortgages, paying property taxes, which allows them to see and analyze the consequences of their financial behavior. And they have been doing this for several years now, this is not a new story.

    Extraco Bank, in an attempt to reduce negative feedback after removing free checking accounts, reported that they launched a gamified app where the benefits of converting customers’ checking accounts are explained. The result was a seven times conversion rate growth.

    Fintech & Gaming

    Interestingly, the relationship between Fintech and gaming is two-sided.

    The online gaming sector is reported to have been ahead of the curve, when it comes to adopting new Fintech solutions. Before Fintech innovations entered the gaming industry, online games were mostly dependent on traditional alternatives, such as major payment systems, accounts and ATMs. Now, Fintechs have been ensuring alternative payment processes and solutions in a safe and secure manner.

    Fortnite, the online Battle Royale sensation, is a good example of the rise of in-game payments. Despite being a free-to-play game, it has found a way to integrate in-game microtransactions, as well as to offer players a monthly subscription that keeps the game running at optimal levels for those who purchase it. Cryptocurrencies have been receiving attention too, specifically by online casinos which now allow their use, together with traditional payment methods.

    If you want to learn more on client engagement gamification and ways to improve your conversion rates, join the Fintech-Aviv – The Israel FinTech Association digital event on March 17th, 2021 @ 5pm (IST).  Global and local FinTech industry leaders will share their insights on smart client engagement methods and gamification processes.

    Register for our event.  

    Author: Tal Sharon

    #Gamification #Mechanics #Fintech #Banking #Engagement #FintechAviv