What was once considered to be just a kid’s game or pass time for game lovers, is now considered to a potential growth sector for the financial market. Traditional banks are not nearly as important to its largest audience, which comprise of millennials over the older generation. When choosing brands, millennials focus on added value and technological simplicity. They also happen to be a generation of video game players.
According to studies, the Gaming industry is growing rapidly. It is set to become $196 million by 2022. Rise of the gaming industry will certainly have a substantial impact on various industries, particularly, the BFSI segment. Why so?
Whether it is buying an insurance plan or a mutual fund, transferring money or borrowing funds, banks and financial institutions are more interested in customer’s delight. Adding gamification may help them achieve it.
Certain gaming apps come with videos on how to make simple banking transactions, such as financial tutorials. Moreover, it comes with added benefits such as loyalty points which can be redeemed against interesting rewards.
How does gamification help banks?
Finances, by nature is complicated. Moreover, the public may not be open to understanding finances in a direct attempt. However, a gaming platform does tend to attract a lot of attention. According to Microsoft, there are over 2 billion gamers in the world. Even more, according to recent studies, every smartphone has at least two to three game applications. Given its increasing attraction, more and more banking institutions are constantly thinking about how they can add games into the banking sector.
This is directed to increase customer engagements as gamification will encourage more users to spend maximum amount of time on the app. This can be utilised for various purposes such as educating customers, or learning about more products of the bank. The more consumers will spend time on the app, the more of a digital footprint will the users provide the bank. With this, banks will get a better understanding of customers, and provide the relevant products or services customised to their taste.
Challenges faced by the banks in the gaming industry
No industry is without its challenges. The same can be said for the banking institution in the gaming industry. In fact, when it comes to banking in the gaming industry, banking institutes are hiring gaming experts to create mobile apps for their customers.
One of the biggest challenges faced by financial institutions is not only to adjust to a digital platform but also make it more customer-friendly. In other words, UX and UI designs are what needed the most. Even if the back end of the app is seamless and processing it quickly, what will improve the customer attraction is UI and UX. Today, most of the banks own their own mobile apps. However, they are still struggling hard to improve the quality of UI and UX.
Future of Banking in Gaming
Banks and financial institutions are aggressively using various in app services to attract more customers. Services such as instant customer service and chatbots are some of the many. Here are some of the predictions for the future of banking in gaming:
1. Focus on millennial oriented products and services: Areas such as wealth management and insurance are in demand with the public. One of the common features will be microinsurance.
2. Post-Covid Regulators: The Covid pandemic may have weakened economies, forcing government organizations and regulators to stimulate the expansion of fintech solutions. Several developed countries have already planned to ease regulations on fintech and ten other industries to jumpstart their economy.
3. Cashless boom: Branch visits and cash payments will decrease dramatically, accelerating development of digital capabilities of banks and creating a seamless user experience. Given that the gaming industry is set to increase, it makes sense that it will also be the industry to earn high revenue.
4. Senior priority: In reality, the older generation holds the lions’ share of deposits in banks globally. Given that the gaming industry is further evolving, banks can easily add agetech and healthtech into fully integrated financial products for the ‘Silver Generation’. By doing so, the industry can seize the untapped and overwhelmingly neglected $15 trillion market opportunity of 1 billion people in retirement.
5. Contextual banking: Offering advice should be a diffe¬rentiating factor for banks as it will become fully personalized, remote and real-time. Now is the perfect time to leverage personalized strategies and the use of advanced analytics to deliver contextual solutions.
6. Health is the new wealth: It is quite clear that this global crisis will have long-lasting consequences. People and financial institutions will get a new understanding of their priorities. Health and longevity may get greater ¬attention and start to be considered as the actual, ¬tangible and most precious commodity. Apparently, we can expect many oceans of new investments coming from investment banks will be redirected from other industries towards biotech, healthtech, preventive medicine and longevity. Gaming apps can be designed to incorporate this.