How XR Gamification Can Revolutionize Banking (+ Case Study)
Gone are the days when banking felt like a monotonous chore. Today, thanks to gamification, financial institutions are transforming the user experience into an engaging and rewarding journey.
In this article, I‘ll explain how we can design a gamification solution for a bank. But before we begin, let’s understand the basics of gamification in banking.
The Power of Play: Why Gamification Works in Banking
Imagine managing your finances not as a duty, but as an exciting quest. Gamification taps into our inherent desire for challenge, competition, and reward. By incorporating game-like elements into banking apps and services, banks can:
- Boost Engagement: Gamified features make financial tasks feel less tedious, encouraging users to log in more frequently and explore different functionalities.
- Motivate Action: Earning points, badges, and unlocking new levels for completing financial goals provides a sense of accomplishment, driving users to make positive financial choices.
- Increase Retention: Gamified banking apps feel more dynamic and exciting, encouraging users to stick with their chosen institution compared to traditional, static interfaces.
- Foster Financial Literacy: Educational elements can be seamlessly integrated into game mechanics, helping users gain valuable knowledge about budgeting, saving, and responsible credit card use.
Designing a Winning Gamification Strategy
The key to successful gamification lies in thoughtful design and implementation. Here are some key considerations:
- Align with User Goals: Gamification elements should support a bank’s overall goals while catering to the needs and aspirations of its user base. Consider offering different “game paths” for those saving for a house versus those focused on travel rewards.
- Start Simple, Scale Gradually: Don’t overwhelm users with a complex web of game mechanics. Introduce core elements like points and badges initially and expand based on user feedback.
- Balance Fun and Functionality: Gamification shouldn’t overshadow core banking functionalities. Ensure seamless integration of game mechanics with essential financial features.
- Prioritize Security and Privacy: Data security and user privacy remain paramount. Implement robust measures to protect user information while utilizing gamification features.
Designing a Gamified Banking Solution — A Case Study
The Challenge: Rethinking Banking Engagement
Let’s face it, traditional banking apps can be, well, a bit dull. People typically use them for quick transactions or balance checks, not for extended engagement. We need to accept the potential of gamification to transform this experience, particularly for younger generations. However, we also need to address the complexities of integrating gamification into a regulated industry while respecting existing user journeys.
Understanding the “Why’s” of Gamification
Why invest in gamification?
- Increased Engagement: Gamification injects a fun factor, encouraging users to complete daily tasks and spend more time exploring the app’s features and functionalities.
- Financial Literacy for Young Minds: Games can be powerful educational tools. By integrating financial concepts, the app could empower children to learn about saving, budgeting, responsible spending habits, and decision-making through real-world scenarios within the game.
- Building Customer Loyalty: A positive user experience, especially during formative years, can foster long-term brand loyalty.
Crafting a Solution: Age-Appropriate Gamification for Financial Literacy
With the “why” established, we should focus on the “how.” Here’s how we can tailor solutions to different age groups:
1. Kids under 14: World Builder, Story-Based Multiplayer Game with Financial Literacy
- Concept: An engaging multiplayer world-building game with a compelling storyline. Kids can collaborate with friends (with parental permission) to complete daily tasks within the game to earn points. These points can then be used to purchase virtual goods within the game’s ecosystem. (This can transformed in a banking metaverse gradually)
- Benefits: The game can incorporate a “needs vs. wants” system. Items can be categorized, and point deductions reflect spending habits. Purchasing “needs” results in smaller point deductions, while acquiring “wants” impacts points more significantly.
This provides subtle yet impactful lessons on responsible spending. Additionally, the app can offer incentives or prompts to encourage the purchase of “wants” occasionally, promoting a balanced approach.
2. Teenagers (16+): AR-Powered Discount Discovery
- Concept: We can leverage Augmented Reality (AR) to enhance customer engagement and drive foot traffic to physical locations. By pointing their phones in a specific direction, users can see AR overlays showcasing discounts and coupons available at nearby stores. Additionally, creating interactive treasure hunt games within stores can incentivize teenagers and other customers to visit these establishments.
- Benefits: Implementing AR in banking apps boosts engagement with interactive experiences like treasure hunts and real-time discounts, fostering loyalty. It drives foot traffic to partner stores, benefiting both the bank and retailers. Personalized marketing through AR ensures relevance, backed by user interaction data for strategy refinement. AR sets the bank’s app apart, particularly appealing to younger users. By blending digital and physical worlds, AR creates new revenue streams and strengthens customer relationships.
User Experience: Integrating Seamlessly
Integrating these features seamlessly into the existing user journey is paramount. Ensure the gamified elements do not disrupt core banking functionalities. Users should easily access them through dedicated sections within the app.
Tech Stack: Overcoming Development Hurdles
Most banks already offer mobile applications, presenting the primary challenge of integrating advanced features like gamification or augmented reality (AR) into these existing platforms. Implementing such features often requires specialized frameworks or game engines, such as Unity3D or Three.js.
Integrating existing mobile applications with Unity3D or Unreal Engine poses significant challenges and risks. Here’s how we can navigate this obstacle:-
- Gamification/Game Development: Go for a web-based tech stack like PhaserJS which is a lightweight JavaScript game engine. This allows loading the game within a WebView component, ensuring compatibility with both Android and iOS platforms.
- AR Integration: For AR features, utilize platform-specific tools: ARCore with Filament library for Android(since writing code in OpenGL is not everyone’s cup of tea and sceneforms are obsolete) and ARKit with Swift for iOS.
Also, keep the following points in mind as well:
- Evaluate Compatibility: Assess the technical compatibility between the current mobile app and the chosen game engine to ensure seamless integration.
- Modular Approach: Adopt a modular approach where new features are developed as standalone modules, reducing the impact on the existing app architecture.
- Robust Testing: Implement thorough testing protocols to identify and address potential issues early in the development process, ensuring stability and performance.
- User Experience: Prioritize the user experience by designing intuitive interfaces that seamlessly blend new features with the existing app functionality.
- Security Measures: Ensure that security protocols are in place to protect sensitive user data during and after the integration.
- Incremental Rollout: Consider an incremental rollout strategy to gradually introduce new features, allowing for real-time user feedback and iterative improvements.
Beyond This: The Broader Potential of XR in BFSI
This article exemplifies the potential of gamification within the BFSI domain. But XR offers even more possibilities:
- VR Branch Simulation: Imagine a VR experience that allows users to explore virtual branches, interact with avatars representing customer service representatives, and even test-drive financial products in a safe, simulated environment.
- AR Investment Visualization: AR can be used to visualize investment performance and market trends, making complex financial data more accessible and engaging.
- Interactive Insurance Education: AR simulations can be created to educate users about insurance products, allowing them to virtually experience covered scenarios like car accidents or home emergencies.
Want to know about gamification using XR? Want to learn more about XR? Feel free to connect with me on LinkedIn.
