How Neobanks & Digital Banks Are Making Savings Exciting Again

We all know saving money is important, but do we truly grasp how much easier it can be?

Sure, traditional banks have been holding it down as the OGs of the financial world, but are they really keeping up with the times? With innovative banking solutions like Neobanks and Digital banks, entering the era, everything you need is right at your fingertips, from opening accounts in minutes to managing your money with intuitive tools. Plus, these modern banking solutions often offer lower fees, higher interest rates, and personalized insights to help you make smarter financial decisions. But are all innovative banking solutions successful? 

In today's fast-paced world, banking should be a breeze, not a burden. It should be fun, seamless, and dare we say, a little bit addictive. So let’s explore how gamification in fintech apps can take our banking experience to the next level and how they can better adapt to serve this digital generation. 

Understanding Customer Behavior

We've got different generations with different saving habits. Take Gen X, for instance. They've seen it all - the highs, the lows, and everything in between. Their saving mantra? Play it safe and stick to what works. Then there's Gen Y (Millenials), the digital natives who grew up in the age of smartphones and social media. They're all about convenience. And here comes Gen Z, the new-gen of tomorrow who are tech-obsessed. They want everything fast, easy, and, most importantly, fun. But regardless of age, one thing's for sure: we all want to save smarter, not harder. But, traditional saving methods often fall short of keeping up with our fast-paced lives. From hidden fees to outdated interfaces, they often leave customers feeling uninspired and disconnected from their finances. 

Raised in an era of smartphones and instant gratification, for this digital generation, banking isn't just about transactions; it’s about seamless, personalized experiences from their financial service providers. They prefer solutions that speak their language, which adapts to their needs all the while keeping the experience fun and interactive!

Gamification Is The Solution

Gamification makes money management feel less like a chore and more like a game. By integrating game-like elements into their apps, neobanks and digital banks can tap into the users' innate desire for challenge, reward, and achievement. But it's not just about making saving money fun – there's some serious psychology behind it too. Gamification nudges the users in the right direction, encouraging positive saving habits and helping them to stay on track toward their financial goals.

In fact, in a 2021 study, researchers delved into the impact of gamification in fintech apps on user engagement and adoption of personal financial management (PFM) apps, using data collected from 208 Mint app users as their basis for analysis.

How To Engage The Digital Generation With Enjoyable Banking Features?

By incorporating captivating features that resonate with this generation’s thirst for self-expression, and individuality, banks can open the door to building meaningful connections that extend far beyond mere transactions. Let's explore some fintech gamification examples of how to enhance the app experience to make it more enjoyable and engaging for users.

Gamified Savings:

Let’s say you set a goal to save up for a vacation or a new gadget. Saving your coins in the piggy bank and waiting for it crossing your fingers, without a clue about how much you've saved, how far you are from your goal, or when you'll reach it, is daunting, right?!

Savings can be made more fun and interactive, converting them into a playful adventure. Users can get set goals, get real-time updates on their progress, how far they are from their goal, the time that will take to reach the goal, and even handy tips on how to speed up their progress! Plus colorful visuals, fun animations, and virtual rewards will keep the users motivated, turning savings into an exciting experience.  

Fi has turned saving into a fun game where users can earn rewards for saving money on their accounts. They’ve got a feature called “Choice rewards”, where users are given options to pick their rewards! Cool, right?! Budgeting:

Budgeting can be difficult and time-consuming when it is done manually. Instead of staring at the boring expense sheets or writing them down on paper, gamification can turn this chore into a fun activity. This is a great way to establish positive spending habits through expense tracking. The app can have different categories to track expenses like groceries, food, entertainment, travel etc, which helps users keep tabs on where the money is being spent. Whenever a user sticks to his/her budget, he/she can earn points or badges, and these points could unlock perks like cashback or discounts. These features will improve the users' money management skills all the while making the experience fun and rewarding!

Oops’s mission is to “help you not waste your money.” With a user-friendly approach, users can track their spending effortlessly and sort them into categories represented with emojis in just simple swipes, which makes them spend only less time sorting out transactions.  This gamification strategy made this app viral since its 2022 launch!

Reward Programs:

When a user completes certain action(s) in the app like hitting the saving goals, completing a transaction, or sticking to the budget, they can earn virtual coins, badges or points. These points can be redeemed by translating them into real rewards like cashback or money. This strategy boosts customer interest to use the app and will also increase the likelihood of the users visiting the app more frequently as it involves a significant amount of money! Cherry on the top is when these rewards are tied to customers’ interest, it attracts a lot of people. Users will become your brand advocates, recommending your app to other people as well!

Revolut offers 10% cashback on online purchases from more than a thousand brands and retailers. They also offer a wide-ranging reward hub featuring limited-time tasks and offers. Also on the rewards screen, users can see the expiration date, and terms, as well as give feedback with a simple like or dislike.    Personalization:

Personalizing user experience can make a huge difference in engagement and satisfaction levels! Offering features like creating personalized avatars, choosing the dashboard layout, choosing the theme, and customizing their notifications - all these add a fun and personal touch to the users' profile.

ICICI bank offers “Expressions Debit Card” where users can personalize their Debit Card from a gallery of 200+ designs or choose one of their own pics and flaunt it all the way. It also offers a lot of rewards and cashback. Interactive financial learning:

Instead of just going through boring YouTube videos to learn about money management and financial literacy, users can dive into fun, interactive learning with digital banking apps. Quizzes and challenges can be tailored to different aspects of personal finance like budgeting, investing, or understanding credit scores. Users can earn points, badges, or virtual currency, making the learning process feel like a game. Additionally, providing opportunities for users to collaborate or join online communities to share knowledge and experiences.

Earlybean is a gamification finance app for kids and teens, designed to teach smart money habits while they manage their own finances under parental guidance. With features like assigned tasks, smart saving with goals, scheduled allowances, and financial courses, kids engagingly learn practical money skills.

Is it worth it? The benefits of gamification

• Increased customer engagement and retention. By incorporating game-like elements such as challenges, rewards, and progress tracking, gamification captivates users’ attention and encourages active participation in managing their finances.

• Enhanced Goal Setting and Achievement. Setting and achieving financial goals becomes more enjoyable with gamification features. Progress bars, milestones, and virtual rewards give a clear view of where the users stand and give a sense of motivation to accomplish their financial objectives.

• Enhanced Financial Literacy. Complex financial concepts become more digestible and memorable through gamified experiences. Users learn about budgeting, saving, investing, and other financial skills in a fun and interactive manner.

• Attracts New Clients. Gamification serves as a powerful marketing tool that helps to attract and onboard new clients. Gamified neo-banking apps stand out from other apps that capture the attention of new clients.

• To Promote New Services. Gamification provides an innovative platform for introducing and promoting new financial products and services to users. By integrating new offerings into gamified experiences, such as quests, challenges, or reward systems, banks can effectively capture users' attention and generate interest in their latest offerings.

• Data Collection and Insights. Through gamification mechanics, digital banks gather valuable data on user behavior, preferences, and financial habits. This data can be leveraged to refine product offerings, personalize user experiences further, and provide targeted financial education and support.

In conclusion, if you’re looking to stay relevant and totally rad in today’s digital world, then gamification is the name of the game! It is the ultimate solution to engage with the digital generation to keep them hooked on financial wellness! So, if you're ready to level up your banking experience and connect with your customers in a whole new way, dive into the world of gamification with Flyy today!