Utilization of Gamification in Financial Sectors

CIO Review Europe | Tuesday, July 19, 2022

Gamification, with its game mechanics, impresses people to invest their money and time.

FREMONT, CA: Technological growth, along with customers' demand, has influenced banks to modify their forms of business. This gave rise to the use of gamification to enhance their business modes. With the sole focus on customers, gamification helps banks emotionally attach to both customers and their employees. However, integrating game-like techniques and elements into routine operations provides a more appealing look than traditional methods. Gamification call is utilized in banking in various ways.

• As the accusation against banks regarding their impotency to understand their customers' needs was on a huge scale, banks chose to look for alternative measures to gain their customers’ trust in them. Hence, from being repositories, they transformed into institutions that can improve people’s lives by helping them to grow their money and businesses. This went into further modifications where banks started to prioritize their customers' needs, which in turn, kept them motivated. The best way to satisfy a client nowadays is to provide them with what they need. This can be done by providing preferential customer preferential treatments, rewards, or an easy mode of assessing their money. When it comes to employees, each may have a separate preference, and rewards should be provided based on those choices which motivate them to work to the fullest.

• For effective functioning of specific operational goals in a bank, KPI (Key Performance Indicator) is being used. Provided with various types, each banking department utilizes them accordingly to measure their success. However, one must be cautious in order to use the best KPI, as most result in vanity metrics. With KPI, the gamification mechanics are regulated so that the Return on Investment (ROI) for the gamification project can be calculated. In the banking and finance sectors, KPIs are empowered to manage customers’ financial well-being or performance.

• Motivation from consumers, employees, and business partners can help the global banking sector achieve its goals. Gamification acts as a tool for motivating the concerned parties in the following ways:

• People must be made aware of what they achieve, and such achievements should be meaningful (proper targets and goals).

• The extraordinary performers should be appreciated along with the team’s excellence.

• Regulation of short-term and long-term goals.

• Avoiding miscommunication and the feeling of discouragement due to failure at a task or target and in solving complex problems.

Research by WHO indicates that the countries with maximum development get exposed to illnesses due to inactivity, while those in development maintain a healthier state. It all depends on the habits that come from motivation, along with perseverance and focus. Thus, by enabling gamification techniques, people’s health is also taken into consideration. The best formula for utilizing money would be to spend less and save more. Gamification enables to increase the deposits with a successful engagement strategy by maintaining transparency regarding their money, holding a backup plan, and prioritizing them by providing customer loyalty and customer feedback.

• When a new product is developed, organizing its marketing strategy should be the goal. No strategy works better than effective communication, where gamification acts as a facilitator. The decision to purchase a product needn’t be entirely logical, as in most cases, it is made on an emotional basis. It can easily be triggered by gamification on the grounds of accomplishment, ownership, social influence, scarcity, and curiosity using game mechanics and elements. Thus, gamification helps in customers' active participation.

• Financial awareness should be created among people regarding their expenditures and their control for a secured future. It is gamification that is employed in online tools of banking and financial institutions to motivate customers.

• Online banking has been growing at a fast pace for over a decade. Thus, assuming that the future of banking lies in the hands of online banking, it is generally used for investing, making deposits, account deposits, and tracking spending and earning. The advantages of online banking are cost, time, convenience, risk and profit. Employing gamification in online banking includes the application of game mechanics, which helps in motivating the customers.

• Developing a loyalty programme in banking generally helps in retaining the best employees as it entices them with rewards and incentives.

Hence, gamification plays a significant role in delivering full potential work in banking and businesses.

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