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Gamification in BFSI: Creating Engaging Financial Products and Services

Updated: Aug 8



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In today’s fast-paced digital world, the Banking, Financial Services, and Insurance (BFSI) sector is on a relentless quest for innovative UX UI and product design solutions to elevate user engagement and satisfaction. 


Imagine a scenario where managing your finances feels like a rewarding adventure rather than a mundane chore. One powerful tool making this a reality is gamification – a dynamic strategy that infuses game-design elements into non-game contexts. 


By harnessing the power of gamification in product design, BFSI companies can transform routine financial tasks into captivating and rewarding experiences, making financial management not just a necessity but a delight for the customer.


Understanding Gamification in BFSI


Gamification involves incorporating elements such as points, badges, leaderboards, and challenges into digital platforms to motivate and engage users. In the BFSI sector, this can translate to enhanced user interfaces, interactive learning modules, and rewarding user behavior, ultimately driving higher levels of engagement and satisfaction.

 

Key Gamification Elements


1. Points:


Points are awarded to users for completing specific actions, such as making transactions, attending educational modules, or setting financial goals.


A banking app might award points for each successful login, bill payment, or money transfer. For instance, CRED, an Indian fintech app, rewards users with points (CRED coins) for paying their credit card bills on time. These points can be redeemed for various offers and discounts.


2. Badges:


Badges are visual representations of achievements or milestones reached by the user.


An insurance app might award badges for completing profile information, renewing policies on time, or attending financial webinars. For example, a user might receive a "Financial Guru" badge after completing a series of educational modules on investments.


3. Leaderboards:


Leaderboards display rankings of users based on their performance or achievements, fostering a sense of competition.


A peer-to-peer payment platform might show a leaderboard of users who have made the most transactions or referred the most friends. For instance, a digital wallet app could display the top savers in a community, motivating users to save more to climb the rankings.


4. Challenges:


Challenges are specific tasks or goals set for users to achieve within a certain timeframe.

A banking app might issue a monthly challenge to save a certain amount of money, with rewards for those who meet the goal. For example, a bank might run a "30-Day Savings Challenge" where users who save a fixed amount daily earn bonus points or cash rewards.



Application in BFSI Sector


1. Enhanced User Interfaces:


Interactive Design: Gamified interfaces often feature engaging visuals and interactive elements that make navigating the platform enjoyable. This can include animations, progress bars, and playful elements.


Monzo, an online banking platform, uses a colorful and interactive interface for its "Savings Pots" feature. Users can create separate pots for different goals, track their progress with visual aids, and receive notifications when they reach milestones.


2. Interactive Learning Modules:


Educational Content: Gamification can make financial education more engaging by turning learning into an interactive experience. Users can participate in quizzes, simulations, and other activities that make complex topics more accessible.


Similar to how Duolingo uses gamification to teach languages, a banking app might incorporate educational quizzes and interactive modules to teach users about financial products. Users earn points and badges for completing lessons and quizzes, making learning about finance fun and rewarding.


3. Rewarding User Behavior:


Incentivizing Actions: Gamification can reward users for positive financial behaviors, such as saving money, making timely payments, and using specific services. This can lead to increased user satisfaction and loyalty.


BBVA, a global financial group, introduced the BBVA Game in Spain to motivate customers to use its online services. Users earn points for performing various banking activities, such as making transactions or using the app. These points can be redeemed for gifts and discounts, encouraging more frequent use of the platform.



Key Applications of Gamification in BFSI


Gamification can be applied in various ways within the BFSI sector to enhance user engagement, satisfaction, and loyalty. Here are some key applications, each explained in detail with examples.


 1. Customer Onboarding


  • Interactive Tutorials: Gamified tutorials guide new customers through account setup processes, making the experience intuitive and enjoyable. Interactive tasks and rewards can encourage users to complete the onboarding process smoothly. A bank might create a step-by-step tutorial for new users, offering points for each completed step, which can later be redeemed for rewards or discounts. For example, BBVA Game motivates customers to use online services by earning points for various banking activities, redeemable for gifts and discounts. This approach not only simplifies the onboarding process but also incentivizes users to engage with the bank’s digital platform.


  • Progress Tracking: Visual progress bars and completion badges can motivate users to complete their profiles and explore more services offered by the institution. An insurance company could use a progress bar to show how close a customer is to completing their profile, with rewards for 100% completion. For instance, users might receive a “Profile Complete” badge and earn points that can be used for premium discounts or additional services.


 2. Financial Education


  • Educational Quizzes: Integrating quizzes and trivia games can help users learn about complex financial products and services. Rewards for correct answers can incentivize users to engage more with educational content.

    A financial app could include a daily quiz on different investment options, rewarding users with points for correct answers, similar to how Duolingo uses gamification to teach languages. For instance, users might earn points for correctly answering questions about mutual funds or retirement planning, which they can redeem for financial advisory sessions or investment credits.


  • Simulation Games: Virtual stock trading games or financial planning simulators provide users with hands-on experience in managing investments, budgeting, and financial planning. An app like Wealthfront could offer a simulated stock trading feature where users practice trading without real money, earning badges for successful trades. This allows users to learn about stock markets and investment strategies in a risk-free environment, building their confidence and knowledge.


 3. Engagement and Loyalty Programs


  • Reward Systems: Points and badges for activities such as saving money, making timely payments, or using specific services can encourage positive financial behavior. These rewards can be redeemed for discounts, gifts, or other benefits. Monzo, a digital bank, allows users to create "Savings Pots" for different goals. Users can set targets, track progress, and receive notifications and rewards when they reach their savings milestones. For instance, users might earn points for reaching their savings goals, which they can redeem for exclusive offers or higher interest rates on their savings.


  • Leaderboards: Displaying user rankings based on their financial activities can foster a sense of competition and accomplishment. A peer-to-peer payment platform might show a leaderboard of users who have made the most transactions or referred the most friends. For instance, a digital wallet app could display the top savers in a community, motivating users to save more to climb the rankings and earn recognition and rewards.


 4. Personal Finance Management


  • Goal Setting and Tracking: Gamified goal-setting features help users set financial goals, such as saving for a vacation or paying off debt. Progress tracking and rewards for achieving milestones keep users motivated. A budgeting app could allow users to set specific financial goals and track progress with visual milestones, offering rewards for reaching each milestone. For example, users might receive points for achieving monthly savings targets, which they can redeem for gift cards or cashback rewards.


  • Challenges and Competitions: Monthly savings challenges or spending reduction competitions can encourage users to adopt healthier financial habits while making the process fun and engaging. CRED, an Indian fintech app, rewards users for paying their credit card bills on time. Users earn CRED coins, which can be redeemed for exclusive offers and discounts, promoting timely payments and enhancing user loyalty. Monthly challenges might include spending reductions or increasing savings, with rewards for the top performers.


 5. Customer Support and Feedback


  • Interactive Support Systems: Gamified chatbots and interactive FAQs can make customer support more engaging. Users can earn points for using self-service options, reducing the need for human intervention. A bank could use a chatbot that rewards users with points for successfully resolving issues using the automated system. For instance, users might earn points for using the chatbot to troubleshoot account issues or find answers in the FAQ section, which can be redeemed for discounts on banking services.


  • Feedback and Surveys: Gamified feedback mechanisms, where users earn rewards for completing surveys or providing feedback, help BFSI companies gather valuable insights while keeping users engaged. An insurance company could offer points for completing a customer satisfaction survey, which can be redeemed for discounts on premiums. For instance, users might receive points for providing feedback on their customer service experience, encouraging them to participate and helping the company improve its services.


By integrating these gamification strategies, BFSI companies can significantly enhance user engagement, satisfaction, and loyalty, creating a more interactive and rewarding experience for their customers.


Benefits of Gamification in BFSI


Implementing gamification in the BFSI sector offers numerous advantages that enhance user experiences and drive business success.


 1. Increased Engagement

Gamification makes financial activities more enjoyable, encouraging users to interact with the platform more frequently and explore its features.


HDFC's "Go Digital" campaign gamified the use of its digital services. Customers earned points and rewards for performing various digital transactions, such as using mobile banking or making online payments. This encouraged users to engage more frequently with HDFC’s digital platform, enhancing their familiarity and comfort with online banking services.


 2. Enhanced Learning


Users can gain a better understanding of financial products and services through interactive and rewarding educational tools.


ICICI's "Money Coach" feature includes interactive modules and quizzes to educate users about financial planning and investment options. Users earn points for completing these educational modules, which can be redeemed for financial advisory sessions or discounted banking services. This gamified approach makes learning about finance engaging and rewarding.


 3. Improved Customer Loyalty


Reward systems and leaderboards can create a sense of achievement and competition, fostering customer loyalty and long-term engagement.


The bank’s "Axis Bank Happy Ending Home Loan" scheme integrates gamification by offering customers an opportunity to earn rewards for timely EMI payments. Customers who consistently pay their home loan EMIs on time can get the last 12 EMIs waived, creating a strong incentive for timely payments and fostering long-term customer loyalty.


 4. Positive Behavioral Changes


Gamified elements can motivate users to adopt healthier financial habits, such as saving regularly, paying bills on time, and investing wisely.


Kotak's "Jifi Saver" account gamifies savings by rewarding users for maintaining higher account balances and making regular deposits. Customers earn "K points" which can be redeemed for various lifestyle rewards. This encourages users to save more and manage their finances better, promoting positive financial habits.


 5. Valuable Data Insights


By tracking user interactions with gamified features, BFSI companies can gather valuable data to improve their products and services.


SBI uses gamified elements in its YONO app to track customer engagement and preferences. By analyzing which features users interact with the most, SBI can gain valuable insights into customer behavior. This data helps the bank to refine its offerings and tailor services to better meet customer needs.



Conclusion


Gamification in the BFSI sector holds immense potential to transform user experiences, making financial management not only more engaging but also boost user interaction, satisfaction, and loyalty, ultimately driving their growth and success in the competitive market.



Ungrammary excels in crafting digital experiences with a blend of creativity and precision, guided by its expertise in UX/UI. Stay tuned for fresh ideas and valuable insights that will elevate your digital journey.





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