The concept of gamification – the use of gaming psychology to influence consumer behaviour – has been around for a while. Gamification is about developing greater customer engagement, building loyalty and improving financial literacy. Gamification is also considered one of the most effective and easy ways to promote the use of digital channels, helping to reduce a bank’s operational costs.
It is another piece of the puzzle that goes towards understanding the customer better and being able to respond to their life events and financial needs in a more personalised fashion. As banking evolves its digital strategies in response to consumer demand, it needs to figure out where a gamified experience fits in and how it could help to put the customer at the centre of everything. For example, if a user is saving for a car or a holiday, a bank could take the opportunity to advance them a credit card, based on this additional insight.
In this respect, it is a new frontier in banking as it isn’t a traditional part of the banking industry that has tried to modernise. It is a new part of the banking experience and we can expect to see it develop and grow as user acceptance and preferences develop too. It isn’t just for millennials either. Done correctly, these types of offer can be relevant to account holders in other customer segments.
There are still many questions about gamification’s future and potential, but it has the power to encourage customer engagement and help banks increase their relevance in an incredibly competitive market. To do so, banks will have to work with technology partners to ensure the user experience is optimal and the offerings are relevant and convenient.
DSK Bank – Bulgaria’s largest retail bank – launched Gameo, a mobile savings gamification application in 2013, using Misys as its trusted technology partner. Using the principles of gaming, the application encourages customers to set financial goals, undertake certain transactions or interactions, and educate themselves about new products. Customers are rewarded for these actions with points which can be redeemed against prizes such as concert or sport tickets, vouchers or other incentives.
What are the challenges to using gamification?
Banking today is about providing the right product to the right customer at the right time through the right channels. Gamification isn’t a panacea but it is one tool that can help banks increase customer engagement and meet these challenges. It doesn’t need to be ‘the next big thing’. It can simply be a staple element of a bank’s proposition, like mobile banking and online banking.
The adoption of gamification comes down to customer acceptance and awareness. To date, it has felt a little gimmicky – its very name implies it isn’t serious. How can savings be a ‘game’? It is up to banks to make this tool relevant and define what the offering stands for.
Today, most successful gamification strategies have to be particularly focused on establishing clear objectives and being able to measure the data resulting from whichever elements get gamified. In addition to this, businesses have to ensure the gamification element holds the user’s interest in the long term and takes into account other issues such as privacy and data security.
So far, banks haven’t really pushed hard to stimulate customers to use these services; rather, gamification has bubbled along. It comes down to creating something which is more than just a cool app. It must be a tool which eases the management and movement of money. It must be relevant and useful for consumers.
There is a technology challenge to be considered too. How can banks run gamification apps alongside their existing digital banking environments and integrate the apps back into the wider technology infrastructure? How can gamification provide value in terms of analytical output and data?
In addition, there is potentially a regulatory challenge around data privacy. Banks must find a balance between being careful with data use and being too cautious to the point where they aren’t using it to better serve the customer.
Are there benefits to be derived from being an early adopter?
According to Gartner, by the end of 2016 gamification will be a vital way for brands to leverage customer marketing and loyalty, despite some of them still being sceptical about its longevity and efficacy.
Gamification can improve a bank’s customer experience, while uncovering valuable sales leads and opportunities for targeted marketing through greater customer insight.
Early adopters are already starting to see results but there’s no one company which has established itself as a champion for gamification. Rather than taking off rapidly, it’s an area making steady progress. Gamification is certainly an area with lots of potential, and it can play a key role in putting customers at the heart of banking services. Taking a more customer-centric approach is crucial as the banking industry evolves and changes to meet customer needs.
By Martin Häring, chief marketing officer at Misys
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