Conversion rates of up to 700%? No way.
But believe it or not, the achievement has been accomplished!
It’s all about gamification.
One of the most effective methods for guaranteeing the success of an app is the use of gaming components. Given that the global gamification market is already worth $11.94 billion, many developers and business owners have begun shifting into the industry to reap the benefits it promises.
But how can gamification benefit a banking app? 8allocate is here to share some valuable insights with you as we have rich experience in implementing top-notch gamification features.
In this post, you’ll learn how gamification in fintech apps simplifies the management of finances and gives your users an exciting interactive experience.
What Is Gamification In Finance and Why Is It Important?
Gamification in finance involves incorporating game elements into an application to improve user interaction and make the product’s user experience more enjoyable and engaging.
Gamification in banking positively impacts the following:
- Customer acquisition and retention
- Client loyalty and satisfaction
- Onboarding process
- Product discoverability
- Product referrals and positive feedback
- In-app conversion
How Fintech Applications Can Benefit From Gamification
Gamifying your financial app will significantly increase your profitability, which is one of the most attractive benefits of doing so. Below are other advantages you could experience when implementing fintech gamification:
Improves customer retention
Gamification in fintech apps doesn’t merely serve to attract customers to your products; it also helps retain them in the long run.
Gamification is incredibly effective because humans have a psychological propensity toward playing games. As a result, if your fintech application has many gamified elements, users will interact with your app more frequently to “win the game.”
Numerous case studies and methodologies demonstrate how gamification has raised retention rates for several fintech products.
One of the best gamification examples is the budget-tracking game-cum-app Fortune City. Rather than adding game elements to the app, Fortune City turned its entire application into a game. This unique platform brings fun to the budget settings as it features a simulation game where customers can build a virtual town by recording their expenses and income.
Fortune City’s town-building aspect emphasizes user diligence, creating an addictive feedback cycle that boosts the user’s financial responsibility and the app’s customer retention rates.
Enhances customer satisfaction
Many fintech applications aim to assist users in solving problems by increasing their wealth or enabling them to save their money. Gamification helps to serve this objective.
A significant drop in customer satisfaction occurs when fintech companies don’t keep their promises.
When you gamify your app and create a system of rewards, users will be more likely to stay within the app and continue using it. The result is enhanced customer satisfaction because you’re providing value, and they’re receiving it.
An excellent example of an application of this concept is the referral system employed by the budgeting software Lunch Money. It has a tiered incentives structure that offers customers more lucrative benefits as they recommend more friends, eventually leading to a free subscription.
Increases conversion rates
According to a Finances Online survey, businesses that added gamification components to their product’s fintech applications saw their conversion rates rise to 700%.
Increasing customer engagement will directly improve your revenue. In other words, there’s a direct correlation between customer engagement and profitability. That’s how happy users are 5X times more likely to renew a subscription than disengaged ones.
Reduces customer churn
Financial institutions can reduce customer churn by using gamification elements to offer incentives to customers and to make otherwise boring tasks like saving and budget-setting more fun and engaging.
According to analytics, customer churn in the banking industry can go as high as 30%. One of the main reasons for this high rate is that the services offered are diverse, so customers are motivated to move to another bank if they think they can get a better deal.
By gamifying your fintech app and awarding points, badges, and other prizes to customers for using the app frequently, they’ll be less likely to churn and will continue using your app instead of switching to a competitor.
Helps collect useful customer insights
Gamification offers benefits beyond simply assisting clients. It can reinforce your business by providing a mechanism for user data collection, including information on behavior, usage patterns, and user preferences.
But why is this crucial?
Knowing what drives your customers’ behavior will help you improve your software and offer more useful features. As a result, the user experience may be enhanced, and engagement and retention may increase.
For example, you see that customers only use the app for a specific purpose, e.g., for budget tracking or saving. In that case, you can develop new gamification features related to that activity. Establishing in-app rewards will entice users to reach their saving goals and become more financially responsible.
In addition, you can use the data collected from gamification to segment your customers and target them with personalized campaigns, which leads to increased conversion rates.
Fascinating Gamification Examples in the FinTech Industry
These fintech companies have employed gamification in their apps in a super exciting way:
The social investing aspects of eToro set it apart from rival platforms. Their powerful gamification techniques, such as News Feed, make use of peer competition and social behavior. News Feed allows users to share their thoughts, trading methods, and stock picks. This is a teaching tool and a source of inspiration because it spurs other customers to compete against the winners.
The CopyTrader function on eToro fuels the spirit of competition. It’s excellent for newcomers who wish to take advantage of other’s experiences to make money. The website also awards the users who others copy.
The charming cat that serves as Monobank’s mascot all through the application makes it clear that they have a friendly approach to users. This mascot quickly debunks the myth that finance is dull and establishes a new perspective as soon as consumers launch the app.
Additionally, the mascot makes achievement badges — the ultimate gamification component of the Monobank app — possible. Users must do different banking activities to acquire rewards. These include making purchases from specific categories, carrying out transactions abroad, or dividing expenses with a friend.
Monobank implemented the gamification feature truly brilliantly!
FinTech Gamification Use Cases
Improving the customers’ financial literacy
You can implement gamification in your fintech app to improve your customer’s financial literacy. For example, simple gamification ideas such as demo videos can concisely and entertainingly convey complex financial concepts like credit, budgeting, investing, and saving.
Improving the user’s financial health
Gamification may significantly boost consumers’ ability to manage their finances.
For instance, if an in-app game mechanism enables consumers to monitor their finances, acknowledge small victories, and receive rewards, they can accomplish aspirations like paying off credit card debt or setting savings for a significant purchase or investment faster.
In other words, app gamification can encourage people to take on challenging activities and advance more quickly toward their goals.
Businesses that want to promote themselves as ethical and sustainable can, for instance, send donations to charities when a customer achieves a given objective or completes a specific action.
Saving is among the most straightforward concepts to gamify. Your app can let users choose to round up or cap each transaction and have the difference sent to a savings account or to create savings objectives and reward them for achieving them.
Top Gamification Features For Fintech Applications
Let’s consider various gamification features that you can implement in your fintech application:
Leaderboards are a list of top scores that allows your customers to compete with one another. They impact the users and raise participation through social comparison. Extraverted people, in particular, have a better engagement with leaderboards.
Every company should consider leaderboards as a gamification component while developing a fintech application. This is because they foster a sense of camaraderie among peers, satisfying humans’ fundamental need for social connection.
Including competitive game components and enabling customers to see their results will definitely improve user engagement.
Another well-liked fintech gamification technique that allows financial service organizations to motivate consumers is the usage of progress bars.
Users see a bar approaching the target as they accomplish tasks, e.g., forming wise spending habits, setting and fulfilling goals daily, and saving money. This results in higher customer retention and engagement.
Gamified educational content
You must use gamified education to increase client awareness of financial services, products, and issues.
Organizations can use various strategies towards this goal, including puzzles, tests, films, and games, to raise financial literacy while increasing participation.
Goals and challenges
Setting goals and challenges is a fantastic motivator that helps boost customer satisfaction and loyalty. This method is used by gamification finance applications to improve users’ financial health.
Software solutions, for instance, can make it possible for users to make personal financial goals, keep track of their spending, and set up and adhere to budgets.
Implement The Best Gamification Solutions For Your Fintech App
Financial firms must focus on the needs of their customers to retain their current clientele and draw in new ones, as the market is highly competitive. By implementing gamification functionality, startups can attract new customers and significantly increase conversion rates.
Additionally, gamification makes it easier to attract new users and boost profits, as devoted customers are likelier to use the app and suggest it to others.
Do you want to stay ahead of your competitors? Contact our development experts today to create an exceptional fintech app that is a pleasure to interact with!