Have you ever found banking or managing your finances boring? You’re not alone. But here’s a twist: What if dealing with money could be as engaging as playing your favorite game? That’s where gamification in fintech (financial technology) comes in. It’s like a power-up for your financial activities, turning them from monotonous to marvelous!

What is Gamification in Fintech?

In simple terms, gamification means applying elements from games — like points, levels, and rewards — to things that aren’t games. In the world of fintech, this means making financial services more interactive and fun. It’s like adding a spoonful of sugar to help the financial medicine go down.

Gamification and our Psychology

Gamification in fintech apps appeals to several basic psychological aspects of our psyche.

1. Reward System Activation: Humans are naturally motivated by rewards. Gamified fintech apps often use points, badges, or financial incentives, which activate the brain’s reward system. This release of dopamine, a neurotransmitter associated with feelings of pleasure and satisfaction, encourages users to engage in certain behaviors, like saving money or completing financial education modules.
2. Progress Tracking and Achievement: People have a natural desire for achievement and progress. Gamified apps often use progress bars, levels, or visual representations of goals, which tap into this desire. Seeing progress towards a goal can be highly motivating and satisfying, making users more likely to stick with a financial app or service.
3. Social Influence and Competition: Humans are social creatures and often influenced by the actions and opinions of others. Many fintech apps incorporate social elements, such as sharing achievements on social media or comparing progress with friends. This can create a sense of community and competition, motivating users to engage more with the app.
4. Goal Setting and Personal Fulfillment: The ability to set and achieve personal goals is a powerful motivator. Gamification allows users to set financial goals in a structured and engaging way, providing a clear path to personal fulfillment and financial wellness
5. Curiosity and Novelty: Humans are naturally curious and attracted to new and novel experiences. Gamified elements in fintech apps can transform mundane financial tasks into exciting challenges, keeping users engaged through novelty.
6. Sense of Control and Autonomy: People like to feel in control of their actions and decisions. Gamified fintech apps often give users choices and paths to take, fostering a sense of autonomy and control over their financial journey.
7. Learning and Mastery: The desire to learn and master new skills is a strong psychological driver. By turning financial education into a game, users are more likely to engage with and retain financial information, as the process becomes more enjoyable and less intimidating.

By tapping into these psychological aspects, gamification in fintech apps not only makes financial management more engaging and enjoyable but also promotes better financial habits and literacy.

Why Gamify Finance?

1. Engagement: Gamification makes finance more engaging. Imagine getting points for saving money or badges for smart investing. It’s a bit like getting a high score, but in your bank account!
2. Education: Many of us find finance complex and confusing. Gamified apps can teach us about budgeting or investing through quizzes or simulations. It’s like learning to swim by splashing in the shallow end — safe, easy, and fun.
3. Motivation: Setting financial goals can be daunting. Gamification can encourage us by turning these goals into challenges or levels to beat. Think of it as turning a mountain hike into a treasure hunt.
4. Community: Some fintech apps let you compare scores or compete with friends. It’s a way to share tips, celebrate achievements, and even learn from each other’s financial journeys.

Gamification Use Cases

Gamification in fintech has led to some innovative and engaging applications that make financial management and literacy more accessible and enjoyable.

Here are some real-world use cases that highlight the diverse applications of gamification in this sector:

eToro:

eToro stands out with its social investing features, harnessing the power of community and competition. Users can share trading strategies and achievements on a news feed, similar to social media platforms. The platform’s CopyTrader feature allows users to mimic the trades of successful investors, creating a competitive and educational environment. Furthermore, eToro rewards users through its Popular Investor Program, where users earn payouts when others copy their trades.

Monobank:

This Ukrainian virtual bank uses gamification to make routine banking tasks more engaging. Its mascot, a cute cat, and achievement badges for various banking activities, like transactions in different countries or bill splitting, contribute to a fun user experience. This approach has significantly boosted the app’s retention rate.

BBVA Game:

The Spanish bank BBVA launched a platform where users earn points for everyday banking tasks like purchases and bill payments. These points can be exchanged for tangible rewards, including music downloads and game tickets. The platform also includes financial education as a gamifiable task, attracting non-banking users and educating them on savvy financial practices.

AML App:

An anti-money laundering certification app, this platform presents scenarios as a detective/mystery game. Users select the correct actions to progress through levels, effectively learning anti-money laundering concepts in an engaging way. This approach has been embraced by major banks and financial institutions in Scandinavia for employee training.

Cake App:

A Belgian fintech app, Cake shares profits with its users. The app processes banking transactions into anonymized data for other companies, rewarding users for sharing their data. This unique approach ensures transparency and offers a tangible benefit to users.

Venmo:

By allowing users to see transactions between friends, Venmo creates a community feeling and uses dynamic feedback as a gamification technique. This approach curbs anxieties associated with financial transactions..

Fortune City:

This financial tracking app lets users build virtual cities based on their spending habits, providing a visual representation of their finances. Users can earn points by completing achievements and competing with friends.

Emirates NBD Fitness App:

The Emirates NBD Fitness app combines financial benefits with wellness, encouraging users to connect a fitness account and track daily activities. Achieving fitness goals, like walking 12,000 steps a day, can result in earning a higher interest rate on savings.

Mint:

An online personal finance management platform that helps users set and track financial goals. It provides reminders for bill payments and helps users avoid late fees, using gamified elements to make financial management more intuitive and engaging.

Monefy:

A personal finance application that simplifies expense tracking and encourages saving. Its intuitive design helps break down expenses in a way that’s easy to understand and manage.

These examples illustrate how gamification in fintech can transform routine and often daunting financial tasks into engaging and educational experiences, fostering better financial habits and literacy.

Is Gamification Effective?

In short. Yes! Gamification can make financial management more accessible and less intimidating. It’s particularly appealing to younger users who grew up with video games and who might find traditional banking methods a bit outdated.

Conclusion

Gamification in fintech is more than just a trend. It’s a bridge connecting the world of finance with the engaging, dynamic world of gaming. Whether you’re a seasoned investor or just starting to manage your money, gamified finance can make your financial journey more enjoyable and rewarding.