Benefits of Gamification in Fintech Apps

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Gamification in FinTech apps will play a big role in shaping users’ behavior by helping them develop good financial habits.

Introduction

Daily exchanges are defined by swiping, tapping, and clicking in today’s digital world. Gamification has brought innovation to Fintech apps by linking financial services with the thrill of gaming. As per Mordor Intelligence’s  Gamification Market Report,

Benefits of Gamification in Fintech Apps

Gamification in the finance industry involves using game elements and design principles in Fintech apps. The purpose is to make financial tasks more engaging and rewarding for customers. Financial firms use gamification by adding points, badges, levels, and rewards to their services, making the user experience more immersive and interactive. It also includes engaging UI/ UX.

With more interesting and easy-to-use Fintech apps, more people tend to use them more often.  This makes it easier to collect user data, and this data enables the app creators or owners to create better strategies.

Gamification thus helps FinTech companies collect additional user data to upgrade services and deliver better apps according to customer preferences. They can take a more customized approach to their product lines, thus refining their offerings. As a result, improving the user experience will boost further adoption.

There has also been a rising adoption rate in insurance, banking, stocks, and personal finance apps. Banks and FinTech companies have been leveraging gamification to enhance customer experience and increase engagement.

In recent years, many have included gamification in their design to improve user experience and product offerings.

Gamification has enabled many financial services providers to shift their perspective from “banking as a service” to “banking as an experience.”

Some firms are even considering exploring the prospect of integrating gamification and Blockchain technology to improve future adoption.

Benefits of Gamification in Fintech Apps

Gamification more than helps with transactions in finance apps. It assists significantly in shaping user behavior and building good financial habits. With a constructed successfully game-based strategy, the following are some benefits that can be reaped:

  • Gamification Helps Adapt to Changing User Preferences

The Fintech industry changes as user preferences evolve across generations. For instance, a Gen-Z user would not prefer to use an old banking website with many forms or slow site speed for their banking needs.

To counter this, gamification provides a flexible framework that can adapt to changing trends and preferences. By paying attention to user engagement metrics and feedback, Fintech companies can continually improve and update their gamified features to meet their users’ changing needs.

  • Boost Customer Acquisition and On-Boarding

Conversely, if a user is interested in an app but has yet to commit fully, they may change their mind if they feel engaged and invested in it. Therefore, making the onboarding process more intuitive and enjoyable creates a positive first impression. This not only increases the likelihood of users adopting the app but also helps them become active and loyal customers smoothly.

When people see how the app makes their lives easier, they want to download and try it out. Game mechanics can help attract and retain new users and increase their Life Time Value (LTV), which is especially important for FinTech apps due to their high churn rate.

  • Differentiate in A Crowded Fintech Market

Differentiating oneself in a crowded Fintech market can be challenging. Gamification offers a unique opportunity to set an app apart from others. Apps that offer more than basic transaction functions can create lasting impressions on users.

Moreover, by blending gamification principles, apps can distinguish themselves from typical apps focusing solely on essential activities.

This kind of uniqueness attracts new users and encourages brand loyalty. Users are more likely to choose an app that is practical and enjoyable.

Also Read: Challenges of IoT in FinTech

  • Facilitates Growth Through Referrals

When people like using financial apps such as personal finance or banking apps, they are more likely to keep using them. Financial technology apps that use games and rewards keep users more engaged and loyal. This creates a community of users who stay with the app and are rewarded for their loyalty.

Gamification helps apps turn satisfied users into brand advocates. When an app uses gamification elements, users quickly become patrons and brand advocates. If they find the app exciting to use, they will certainly recommend it. The app’s rewarding and enjoyable aspects can prompt users to share their positive experiences with their contacts.

This organic word-of-mouth marketing contributes to the app’s popularity and shows a sense of trust, as peer guidance is often more influential than traditional marketing efforts.

  • Helps Collect Useful Customer Insights to Reduce Churn

Many customers switch to another bank because they offer a wider range of services, which motivates them to look for better deals. This high attrition rate is mainly due to the diverse services banks offer

  • Gamified Apps Contribute to Better Customer Data Collection

Encouraging FinTech app users to stay engaged by adding a game-like experience helps reduce churn. Awarding them points, badges, and other rewards when they use the app regularly will make them less likely to stop using your app and switch to a competitor.

Conclusion

Using gamification in financial products is effective because it taps into how people want to engage while conducting transactions or banking activities through apps. It can help keep customers engaged, attract new users, and increase conversion rates.

Financial firms must focus on their customers’ needs to keep current clients and attract new ones in a very competitive market. Gamification can help attract new users and increase profits, as loyal customers are likelier to use and recommend the app to others.

Check Out The New TalkFintech Podcast.

Aafreen Shaikh
Aafreen Shaikh
Aafreen Shaikh is a Senior Associate Editor with OnDot Media. She has had professional exposure in the research industry for 6+ years. She is interested in several tech-related topics, such as AI, IoT, and cybersecurity, to mention a few. When not absorbed in the latest gripping page-turner, Aafreen loves spending far too much time playing the latest games on the computer. She also loves to stay abreast of industry trends and reads up on as many publications in that domain. Her insights in the IT domain are translated into the crisp and fresh perspective-based content she creates.
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