How does gamification work in banking? Some banks define the problem and launch a contest to find the answer. Barclays, for example, announced a Launchpad Business Challenge to find new ways to use gamification to improve its customers’ banking experiences. They have publicly shared sandbox APIs for banks to use, and asked startups to submit ideas. Barclays has 16 million customers around the world, and they’re interested in seeing how startups can use gamification to improve the banking experience for those customers.
Gamification appeals to human impulses
The neoliberal push for a market subject has led to the proliferation of financial games that cater to human impulses. The gamification of banking and financial education aims to increase novice investor participation, but questions remain about whether it will increase the number of people who feel empowered. The question is posed by the promise built into such games. The millennial generation is the prime example of this.
One way to explain this is to look at the role of the ‘human’ in society. Human behavior is seen as a product of our biological makeup, and conditioned to seek pleasure, which is why we engage in games. This behavior is not explained on the level of culture, but is explicitly referred to as biological programming. One blogger discussing the use of gamification in banking described the process as ‘tapping into’ biological programming.
It is a way to provide personalized and compelling experiences
Gamification can be a powerful tool in the banking industry, because it can make banking more fun, and encourage specific consumer behaviors, such as saving and prompt payment of credit cards and loans. This method of gamification is not new to retail banking; banks have been using credit card reward points for decades to encourage customers to spend more and pay their bills on time. Moreover, consumers prefer credit cards over cash, and using a bank’s app makes the entire banking process more convenient.
By incorporating gamification into banking, banks can increase customer loyalty and customer advocacy. Gamified customer service allows users to view their spending habits and set goals to save money. This method can even improve customer service and reach new customers. Banks can also use gamification to improve their digital experience, which will increase customer engagement and earn valuable Earned Data. Further, gamification can help improve the efficiency of customer service, and give consumers an additional reason to use their bank.
It can increase customer acceptance, engagement, and satisfaction
The use of gamification in banking has many benefits. It helps banks understand their customers better and cultivate a loyal customer base, which are more profitable and less expensive to serve. The company Moneythor, for example, offers an orchestration engine to connect financial institutions’ systems of record with digital channels. This engine powers customised experiences for end users. Using the Moneythor solution, banks can offer pre-built gamification features and contextual nudges to drive behavior and improve customer satisfaction.
Through gamification in banking, banks can enhance loyalty and rewards programs, create an awareness of new marketing campaigns, and increase customer satisfaction. Banks can gain insight into customer behaviour and interactions using analytics tools, such as game analytics, to improve their products and services. Gamification can also boost customer retention by providing new features that will help them achieve their goals. This is the way to go for digital-only banks.
It can lead to zero-sum competition
There are two types of banking gamification: interactive games and traditional financial products. Interactive games encourage users to do certain things — like saving and spending. The latter type of gamification is more likely to result in a zero-sum competition, as the gamified account does not generate any revenue for the bank. In contrast, traditional financial products such as CDs and savings accounts bring in revenue.
The banking industry may benefit from gamification, which improves the customer experience. Many people view banking as a routine task, which can be made more fun through games. Consumer engagement and satisfaction are expected to rise when a bank is able to offer a better experience. However, the motivations for playing games and entering sweepstakes are very different from those for performing traditional banking functions. It is therefore important to distinguish between the two types of banking games.
It can be addictive
Banks should take caution when implementing gamification in their applications. Gamification in banking isn’t the same as turning your banking app into a video game. Instead, gamification is a way of using design elements and mechanisms that are already common in the gaming industry to increase engagement and customer loyalty. In the gaming industry, specific techniques have been developed and documented in behavioral psychology to increase playability and user satisfaction. These techniques are based on primal human motives such as curiosity and scarcity.
In an attempt to boost customer loyalty, some banks are using gamification to reward customers. Some banks are even using Foursquare check-ins as a reward system, and Dupaco Credit Union has launched an online game based on money management. Players move up levels by making wise financial decisions. This game is designed for younger customers and is one of the most innovative and successful attempts at gamification in banking. But be careful: gamification is also dangerous.
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