« A Lesson from Bollywood for Outsourcing | Main | Using the Sum of the Parts to Power Innovation »

April 10, 2013

Gamification Figures Big in Banking

Posted by Jasmeet Singh (View Profile | View All Posts) at 10:46 AM

J singh.jpeg

Banks have been struggling to heighten their levels of engagement with modern consumers. The Internet certainly has helped do so. It has strengthened the role of the consumer in all facets of commerce.

Nowhere has the voice of the individual become more potent than in banking. The good news is that a new trend will help banks tap into the minds of their consumer base: Gamification.

Gamification targets an audience and helps an organization understand vital relationships better. Like co-creation, it's yet another means to grasp the social context of your consumers. What's also similar to co-creation is that the trend is still emerging and there's a lot we are yet to discover about its advantages and how it's changing the ways in which we do business. 

Gamification's endless possibilities for streamlining your business are not unlike a Lego set in the hands of my kids.  My older son may set aside the actual building bricks to play with the figurines instead. But his brother, on the other hand, might take out the instruction manual and put together the building to the exact specifications of the Lego set. In the end, both kids have had enriching and fun experiences with their Legos. But their experiences were markedly different. Who's to say which experience was optimal?  I imagine they both were. Along those lines, I'm currently witnessing various financial services firms that apply gamification to their marketing efforts. 

Each program is different, yet they're all satisfied with the results they deliver. One large bank has fashioned a "virtual wallet" that allows users to move funds in and out of buckets within the institution. Another has more of a teaching game that demonstrates the various ways in which a person can save and invest money with that bank.

Global organizations are waking up to the possibilities inherent in the effective use of gamification. Indeed, banks and software companies alike are thinking like video game designers do: First, get people to play the game, and second (and perhaps more important), keep them playing. When an organization presents tasks as riddles or game-like challenges everyone is motivated to be on the winning team. 

Gamification opens a world of possibilities for innovative banks. It can be a powerful means to move from transactions to engagement. This is particularly more relevant as customers increasingly move to digital channels. You don't have to have a very large sum of money to have complex financial needs; every one of us makes complex financial decisions on a daily basis. There is a need and place for improving financial education, investment options, leveraging historical data, deciding whether to lease or buy, retirement planning, saving for college, and buying insurance. These are activities that require time to make a viable choice. You could get your help from advisors of course but for folks in the retail banking segment gamification is another option. 

Imagine using light-hearted, fun techniques to lead consumers through various scenarios and judge where next to engage with them. Better still is the fact that the next step will be significant to the consumer. You've gotten to know his preferences and you won't be perceived as wasting anyone's time when asking for preliminary information. Thanks to gamification techniques, you'll already know it. For those banks that get this right, there is  a better understanding of the needs of their customers.

That's why gamification can be so powerful. There are plenty of ways to make this trend work - much like a newly unpacked set of Legos.

Post a comment

(If you haven't left a comment here before, you may need to be approved by the site owner before your comment will appear. Until then, it won't appear on the entry. Thanks for waiting.)

Please key in the two words you see in the box to validate your identity as an authentic user and reduce spam.

Search InfyTalk

+1 and Like InfyTalk

Subscribe to InfyTalk feed

InfyTalk VBlogs: Watch Now

Infosys on Twitter