Why is there a need for gamification in Fintech?
Findings in research show that there is a strong relationship between gamification and intent to use online banking services in Fintech. A properly designed gamification can help make bank activities more exciting, interesting and enjoyable. In return, Fintech gets customer acceptance, increased engagement and higher satisfaction. This extends the usage of technology and includes the gamification impact. The results in research explain customer decisions and their journey of using banking services.
The globalization of Fintech is furthering the need to acquire a deeper understanding of the impact of gamification within the financial industry. The results of introducing gamification in the financial industry are quite new, but there is clear evidence of success. New data from South America provides new insights into how game techniques influence individual behaviour in Fintech.
The use of financial applications has in recent years increased significantly, where online banking can be done almost anytime and anywhere. However, most banking services are not very fun to use and are mostly used for simple transaction services, according to studies. Gamification is expected to more easily capture and sustain the interest of the younger generation, the people who are raised in games. However, games stimulate all generations. Providing a more fun and enjoyable environment can favourably increase acceptance of the application.
The model has empirically been tested and proven to be superior compared to other models in other systems and is therefore used related to GWEN. The impact of gamification in this model will become one of the most important enhancers of customers’ appreciation of online banking in the upcoming years.
The definitions of performance expectancy show that individuals will use banking services if they believe it will have positive outcomes. Studies confirm that consumers who find banking easier to use become more willing to do transactions (Lin, 2011). To include social features and a favourable set of conditions such as online tutorials or demos in the gamification service contributes to a greater likelihood of acceptance of application-based banking. The methodology summarizes as follows:
Habits reflect the multiple results of previous experiences, according to Venkatesh (2012), and the frequency of past behaviour is considered to be one of the most important factors that affect present behaviour, which is the reason why users tend to adopt tasks and routines into their mobile banking system. Therefore the methodology summarises as follows:
Research confirms that UTAUT2 is one of the most complete theoretical models used in the context of information systems in the financial industry. Understanding the key outcomes of this model is crucial to design, refine and implement banking services that yield high consumer acceptance. By understanding the main factors affecting user acceptance, with regards to performance and effort expectancy, banks will be able to evolve and align functionality with customer needs.
There are not that many substitutes for Gamification to drive engagement and create an enjoyable user journey. To mention one is the webchat with integrated chatbots. This allows mobile banking applications to boost digital engagement an optimal user experience by offering quick and personalized interactions.
Gamification and user engagement
Applying game mechanics to motivate and drive engagement in a non-game context will change banking user behaviour, improving service acceptance and usage. New generations are entering the field and the question so important to ask is why most of the mobile banking services still remain so serious? Why can’t users have an excellent customer experience and at the same time have fun in their customer banking journey?
Users get engaged through competition, teamwork, intrigue, curiosity and problem-solving, all which help to infuse a feeling of ownership of their performance and results. Points for actions, badges as rewards and a leaderboard for competition, cash prizes, discounts and other free perks to engage service management. These are all things which result in positive feedback and reinforce loyalty.
Some gamification customer stories and studies from Fintech
In the last few years, the financial industry has witnessed an accelerated and consistent growth of banks and financial institutions deciding to apply game mechanics and game design techniques to their systems and services. There are several successful examples in South America. One example is Banco Bilbao Vizcaya Argentina, where they let customers earn points by using the bank’s transactional site and redeem them for products and services. Saveup.com encourages users to perform financial activities by letting them earn credits and money prizes.
A pilot project has been made for SEB in their mobile banking application, where a module package including the modules Level, Achievements, Shop and Mission. The overall purpose was to make the user journey more engaging and fun in the SEB mobile banking services with features like SEB Rewards with Value Points and earned SEB coins, Loyalty Programme with loyalty level and My Journey.