Gamification in Fintech: Is It Still Relevant?
Gamification 101
Learning how to invest in complex financial markets can appear daunting. Gamification simply means using game design elements outside of a video-game context. Video-games are an inspiring arena of user engagement that can teach us about successful attention-grabbing strategies.
The Financial Sector: Before and After Fintech
“As a popular approach across industries, recently utilized in fintech, gamification is radically changing the reputation of the financial sector, making it more approachable to non-experts, youth and financial actors from all over the world.”
Since the 1960s, publicly available financial information has become more accessible. The internet boom in the early 2000s furthered the change. Now, data-fatigue makes it more important than ever to organize data in an engaging way.
The Fintech Future is Millennial
Millennials are considerably less interested in investment than Gen X or Baby Boomers, have less trust in traditional institutions, and are digital natives rejecting traditional wealth management. They have shorter attention spans and are more focused on short-term solutions. Gamification simulates the exciting environment of video-games in finances.
Learn to play, play to learn
“The gamifying options are limitless, and they progressively erase the boundaries between play and financial activity. Gamification offers educational potential as well as possibilities to reach more users.”
Two forms: Duolingo Style — progressive learning with rewards (e.g. savings app rewarding budget discipline). Learning by Simulation — virtual trading simulations for students competing with classmates.
Gamification in Fintech: Pros and Cons
Pros
Increasing motivation and engagement — research overwhelmingly positive, points/badges/tasks allow users to track progress. Innovative approach to learning — apps like Investmate and World of Money teaching younger generations about investment. Democratizing knowledge — free fintech apps reach people from different backgrounds, no business degree needed.
Cons
Decrease in intrinsic motivation — external rewards can diminish natural learning process and curiosity. Time consuming to make — gamification requires extra development effort, music, sound effects, visual animations. Poorly designed elements backfire — users have high expectations; thoughtless gamification appears dull or damages engagement.
To Gamify or Not?
“Gamification can be a powerful strategy to popularize financial services, educate users and let them experience the market entertainingly. When used with caution and a clear idea to promote user engagement, it helps users demystify the financial industry. However, in fintech, the user is king — thorough UX research must precede any development.”