Gamification has already gained popularity in many areas of business, and the tough banking world continues to enter this market. In this article, we will consider how to use gamification in banking and what benefits it can bring to the industry.
In this article you will learn about:
- Basic principles of gamification.
- The main problems for the wider introduction of gamification in the banking sector.
- Advantages of gamification for banking.
What is gamification in the business environment?
Modern consumers are very picky, and large and small businesses are trying to force-feed their goods and services. Nowadays, businesses need new, sometimes amazing approaches to customers. This is where gamification can help.
Gamification is a purposeful attempt to make a product or service using game psychology to instill the desired behavior.
Statistics show that gamification as a business approach is completely justified. Companies try game mechanics, such as quests, ratings, and levels, to achieve various internal and external goals.
Companies continue to invest in gamification approaches because they believe they are truly transforming the business. They use game techniques to:
- Attract customers;
- Provide knowledge about specific business domains;
- Increase customer loyalty;
- Train employees;
- Motivate employees;
- Improve health and well-being;
- Promote personal development;
- Manage innovation.
Gamification for the banking industry: what’s at stake?
There is controversy over whether banks can reap the benefits of gamification like other businesses. Experts believe they can. There are a lot of examples of gamification in various areas of banking: marketing, sales, talent management, and innovation management.
In addition, the gamification of corporate banking services is no less successful than the gamification of retail banking services. The same goes for traditional and digital banks: intense competition equalizes the odds. The winners are those who carefully and systematically use the elements and principles of game design. This is because the size and assets of the bank are not key factors that attract customers and hold their attention. It is often about satisfaction and rewards: two things that people get during the game.
Stereotypes that can stop the gamification
The biggest problem faced by banks that use gamification in their services is customer recognition. People may be wary of games provided by banks; they do not want to play games with their savings. Therefore, banks must carefully decide which elements of the user interface will be gaming and keep in mind the security of the data and the confidentiality of the account.
The next stereotype, which spoils the image of gamification in banking, assumes that the games are intended only for children. This, of course, is not true. The games have accompanied us throughout our lives, from backyard games to school sports, chess, crossword puzzles, and the Olympics. By the way, social networks are also a kind of game played by 2.77 billion people worldwide. Millennials are a favorite target audience of banks, and they are simply in love with everything digital.
Practical cases of gamification in the banking sector
Let’s look at the real cases of gamification in the financial sector and the benefits it has on the banking sector.
- Gamification as a basic strategy for attracting new customers.
With gamification, the bank can focus on customers according to their specific needs. Games appeal to people’s desire for entertainment, simplicity, social interaction, rewards, and competition. Nowadays, banks practice game mechanics and design experience to motivate people to use credit cards and open deposit accounts.
Here is an example: Barclaycard US in cooperation with Mastercard launched Barclays Ring, a social credit card. Using game design techniques to make card-related activities more attractive, they created a social community of cardholders. The main idea of the project is to “form and participate in the financial success of the product”. Community members are grateful to share their suggestions and ideas for credit card features. Online and offline rewards, such as paperless badges and charitable contributions through the Barclaycard Donation Program, help promote the product as a convenient and attractive one to active and socially responsible users.
- Gamification in banking is a successful method of attracting depositors.
Understanding your audience’s financial needs and helping them achieve their goals is not as easy as it seems. But using gamification in the banking sector to increase deposits is one way to do that.
Speaking of millennials, this generation is interested in receiving awards for shopping and interacting with brands. In addition, 40% of millions say there should be games associated with loyalty programs.
Here’s an example: The Emirates NBD fitness app is one of the best examples of how to use gamification in banking. To increase contributions, Emirates NBD has launched an incentive to encourage people to save more during training. Customers can open a special fitness account with a mobile app, sync it with a fitness tracker, achieve daily goals such as 12,000 steps a day, and receive a 2% interest rate as a reward. Now, this is what we call a healthy approach to marketing. The results were extraordinary: savings of $ 4.37 million, increased customer loyalty, and recognition in the world media.
- Gamification for the banking industry means the best service experience, which is manifested in loyalty among target groups.
Proper design and implementation of gamification make banking exciting and enjoyable. And here begins loyalty. When users play and win something, they project a positive image. Therefore, the next time they need a loan or other service, this bank will be the first place to go for them.
A satisfied customer, especially one who has won something, can brag and tell a success story to their friends and colleagues. Bingo! It’s two in one: advertising and a regular customer.
Here is an example: BBVA, a leading Spanish bank specializing in digital technology, has developed a single strategy to increase customer loyalty. As part of this strategy, they launched BBVA Game, a web application with videos on how to make simple banking transactions, tutorials on mobile banking programs, and explanations on how to pay taxes online. By completing tasks, customers can earn points and use them to download music and stream movies or participate in various lotteries and distributions.
- Banks that use gamification in their services can gain invaluable customer understanding.
Gamification of retail banking services can open a treasure trove of user information. The game requires action, and the action leaves digital traces. A professional approach to identifying and deciphering these traces allows banks to better study their customers. This gives a realistic picture of the number of active users, their level of interest in banking services, how much money they save, and what their goals are. Meanwhile, thanks to social networks and gamification functions, banks can get a great identity that helps in lending.
Here is an example: Moven Bank invites users to try their system called CRED. CRED, positioned as a digital friend or colleague, monitors how users pay bills, transfer money, etc. to help with routine financial decisions. Moven, in turn, uses social intelligence as an important factor in the formation of credit scores.
Gamification in banking is a serious matter. Business titans are spending millions on gamification. They know it’s not just about collecting badges or coins; it is also about valuable insights, an expanded customer base, and an attractive image.
Of course, there are problems behind this approach. Banks that seek to use gamification in their services must make major changes to corporate processes, structures, and operations. That’s why it is better to cooperate with specialists in this field. The Inoxoft company specializes in banking gamification, so do not lose the opportunity to improve your business with innovative technologies.