How Gamification In Banking Can Help Financial Institutions Engage More Customers

Gamification has already proved its significance for engaging various audiences in different sectors, including education, healthcare, recycling, and human resource management. However, when it comes to gamification in banking and financial institutions, it is usually perceived with caution and skepticism.

gamification in banking

What is a common type of banking and what do banks suppose to do? 

A bank is a financial institution licensed to receive deposits and make loans. Two of the most common types of banks are commercial/retail and investment banks. Depending on the type, a bank may also provide various financial services ranging from providing safe deposit boxes and currency exchange to retirement and wealth management.

Did you know that?

Due to the worldwide pandemic, the percent of banking customers using their banks’ mobile apps has increased. According to the report by Deloitte, Bank of America’s business banking app witnesses a 117% growth in mobile check deposits.
Also, the report shows that 44% of customers choose to use mobile banking apps. So, the banks start to think about enhancing the customer’s experience and users’ engagement while using their application.

Why Banking Sector Should Implement Gamification In Their Services To Engage More Customers?

Gamification appeals to natural human impulses and desires, such as the need for simplicity, fun, entertainment, social interaction, reward, and competition. Banks can apply game mechanics and designs to incentivize people to pay by cards and open new accounts with benefits. How can banks gamify their services, carry on reading this blog till the end.
(i) Engage & Motivate Customers:  It creates a challenge and feeds the feeling of accomplishment that most banking customers crave.
(ii) Turn Boring Activity Into Fun: When people get bored, they lose focus. The same goes for bank customers. Subconsciously, they will lean toward services that are more fun.
(iii) Behavior Change:  It helps people acquire new skills by rewarding certain behaviors. For example, you can help customers shape their money-saving skills.
(iv) Introduce More Complex Concepts Easily:  Game elements can boost one’s motivation to acquire knowledge (e.g., learn about different types of credit cards). As an educational approach, gamification can also be used to raise awareness about new or existing services of banks.

How to Gamify Bank Services (Practical Gamification Ideas For Banking & Financial Sectors)? 

By using gamification in banking, a bank can target customers according to their specific needs. Now banks are practicing game mechanics and experience design to motivate people to use credit cards and open deposit accounts.
Let’s review some of the ways in which banks & financial institutions can attract and retain customers using gamification:

  1. Hold Contests, Give Rewards: One of the most common techniques to attract new clients is to give them something of value for satisfying certain conditions, like participating in a referral program. For example, Payoneer offers $25 to both an Affiliate and the person who registers with the service via a link.
  2. Give Points For Spending Through Cards: It’s easy to find people who have played Mario Bros or other games where you collect coins while completing a quest. You can take the same idea into shopping with a card issued by your bank. One of the most simple gamification ideas for banking: users earn points (coins) for shopping with retailers you partner with; later, they can redeem points for gift cards. You can boost motivation by raising the stakes to a grand prize (like a trip) that only the most active players can win.
  3. Incorporate Social Media: Add an option that allows users to share their accomplishments, the contests they participate in, or any features they like with their friends and followers on social media. Aside from engaging the audience, you also get passive advertising, since your customers are spreading the word about your product or services.
  4. Use Gameplay To Educate Customers: Puzzles, quizzes, short videos, or actual games can be used to elaborate or uncover a topic. For example, customers can earn redeemable points (motivation) for watching educational videos about finance-related activities. This way, you raise awareness about financial topics among your customers so they can make smarter decisions about their bank accounts and investments.
  5. Promote New Services With Gameplay: There are fun ways for clients to learn about your services and features aside from straightforward advertising. For example, it could be a short video in which the main character goes through a series of troubles that your product solves.

Do you know about myCred Points Management System? 

myCred is a powerful and easy-to-use points management system that allows you to build and manage a broad range of digital rewards including points, ranks and, badges on your WordPress/WooCommerce powered website. It is easy to set up and works with a vast library of third-party software. myCred has an extensive collection of affordable premium addons that can help you create a lucrative reward system that is perfect for any business type.

myCred’s Comprehensive Model To Gamify E-Banking 

Gamification challenges e-banking to develop and implement new features in traditional business applications, namely the elements and characteristics frequently associated with online games (e.g. easy process, attractive design, points, leaderboards, rewards, etc.).
The implementation of business software, with the game elements and characteristics, offers a powerful tool for imparting information, changing behaviors, influencing the decision-making process, enhancing customer engagement, and motivating them.
Here are some of the actionable game elements that can be easily introduced in the banking sector to reward customers with attractive perks.
#1 Points – Give points to the users to encourage them to reach higher goals. They will help the participants to monitor their progress.
#2 Badges – Once someone accumulates a certain number of points, they can be rewarded with a badge.
#3 Leaderboards – They will help the users to see where they are among the others and sustain compatibility.
#4 Progress Bar – It help bank customers to see their account progress and to unlock attainable goals.
#5 Social Proof – Social Proofing strategies help bank customers to make certain decisions like purchasing a new credit card, taking interest in a new financial service, or what other people are doing with a particular bank.
#6 Social Sharing – Sharing once accomplishment is the new normal in the digital era. Bank customers can share their achievements on their social networks to boost self-esteem.
#7 CashCred – CashCred is a myCred core addon to help users convert their gained points into real money.
Top Benefits Of Using Gamification in the Banking Industry
Enhance customer engagement online: The solution is based on the game mechanics, so it makes customers spend more time using the application and interact with the services.
Broaden customers’ awareness of new services and products: Banks that present information interactively and simplify the educational processes, let their customers learn about the latest products and services quickly.
Ease the understanding of the banking operations: The easier it is to learn about the banking processes and operations, the easier it will be to increase customers’ financial literacy.
Boost deposits: Gamification can be used to increase customers’ savings by linking credit card spending with prize-linked savings.
Reach for the new customers: As current customers experience new communication methods and interaction with the services, they will bring new customers. Apart from this, receiving data about existing customers will help you reach a wider audience.
Change the behavior of the customers: When you increase loyalty to your brand, the customers will feel more comfortable with using online services.
Gather analyze valuable data about current customers: The valuable insights about customers’ behavior will help your business come up with ideas for future development and enhancement.
Enable faster digital transformation: The solution can serve as a simplifier of the transformation process for both employees and the bank’s customers.
Few Best Examples for Gamification In Banking
(i) The Moven (USA) bank has created CRED, a gamified system that helps customers with their routine financial decisions.
(ii) PNC Bank has long been trying to involve depositors in setting and reaching their savings goals. For this purpose, they created a Virtual Wallet. Customers can distribute funds between accounts depending on the purpose, be it regular spending (for example, bill payments), short-term savings, or long-term investments. The Wallet’s Money Bar feature allows tracking reserved and free to spend funds. To activate the money-saving mindset, the bank introduced a nifty gamified feature called Punch the Pig. When someone is banking online, a piggy bank appears on the screen, allowing customers to transfer a certain sum from their checking to savings account.
(iii) CommBank of Australia introduced the ‘Investorville’ game to let customers simulate buying and owning a property. Players can experiment with applying for different types of mortgages, go through renovations and gain experience in paying property taxes. While playing, first-time buyers can see the consequences of their financial decisions and analyze potential pitfalls.

Wrapping Up! 

Banking is a serious industry and rightly so. But on the other hand, gamification is not all about entertainment only. In fact, it can drive customers’ engagement and motivation to do more! Many banks are adopting gamification techniques to attract more customers and keep them hooked with their financial services. Gamification in banking has a huge scope and both industries are complimenting each other.