We are living in a moment where the banking world should be questioning and rethinking concepts that have been taken for granted over the past hundred years. The digital revolution is happening and with GenZ coming of age, they are facing adult financial challenges that they are underprepared for. When it comes to money, the future of financial services brings opportunities to ensure the younger generation can overcome these challenges. Gamification in financial services can be a big ally for financial institutions.
Today, most banks and financial institutions are still following traditional procedures that were designed in a pre-digital world. But we now have adults, who were born after 2000, who have had a computer at home - connected to the internet - since the day they were born and a smartphone since primary school. GenZ are not future clients anymore. At this moment, they are starting their financial life and choosing a bank (or a financial technology company) that will follow them for decades to come.
In order to better connect with younger potential customers, financial institutions will need to better understand their concerns for the future and their daily habits, including the importance of online presence and gaming.
Let's face it, for someone who was born with the internet at their fingertips, solutions to life's problems should be no more than 2 clicks away. Last year, Forbes published an article "How Millennials And Gen Z Could Reinvent The Banking Industry" highlighting research results that suggest younger generations are seeking a more stable financial future, especially after growing up during a recession, watching millennials struggle with debt, and coming of age during the Covid-19 crisis.
For millennials a big differential today when choosing financial institutions is having a good user experience in the mobile app or web portal, but for GenZ, having access to online banking is table stakes. Let's be real, in 2022 using a phone to cancel a credit card is out of the question. Young adults, instead, are looking for financial institutions that are highly digital and opt for those that can help them build positive money habits, so they won't repeat their parents' and older siblings' mistakes.
The secret to a successful and long relationship - of any kind - is trust, partnership and healthy habits. The financial institution and clients relationship is not an exception to this rule. To gain and retain clients it is important to understand what they want to achieve and help them flourish. What this new generation wants is a bank that covers the lack of financial education by helping them spend smartly, build savings, and more importantly, create wealth.According to the article "What does Gen Z want and expect from banking and wealth management?" posted in 2019 by Investec, "GenZ people are more likely to put their money to work smartly and are much more cautious about spending. An Accenture report that came out this year shows that 68% of those in the GenZ bracket actually budget and save more responsibly than their older counterparts."
A smartphone opens a world of possibilities. Technology now takes many roles in our daily life, it is our work space and where we solve all of our problems, from onlinebanking to where we play games, take pictures and connect with others. When observing GenZ habits, gaming is a huge part of their daily life. According to the NewZoo 2021 research, 81% of GenZ reported playing games in the past 6 months, and that their average gaming time exceeded7 hours per day. But older generations are also not immune to the charms of online gaming: according to the same study, more than 45% of baby boomers (the oldest group interviewed by the researchers) also reported online gaming in the past months, and their average time spent was around 2 hours per week.
Gamification is revolutionizing traditional industries. Education, for example, has been using a lot of gamified elements to create new learning experiences. Incorporating educational aspects and financial literacy to digital banking products and services, as well as combining it with GenZ interest in gaming, is the way to younger generations' hearts and loyalty. The Filene.org institute estimates that the digital experiences gamification market will grow $30.7B until 2025 and that this is a big opportunity for financial institutions to embark on this new trend.
For Pedro Moura, Co-founder and CEO of Flourish FI, data intelligence combined with behavioral science will lead to a better financial ecosystem. "We use gaming elements to engage with the end user, creating loyalty and making it fun to be connected and aware of your own finances. Our technology empowers people to develop better financial habits.”
Our turnkey engagement and financial wellness platform enables banks, credit unions, fintechs and other institutions to drive up deposits, client loyalty and customer satisfaction by transforming how people interact with their finances. But how do we do that?
Our goal is to help users reach long-term financial goals by leveraging behavioral science, gamification and data intelligence to provide personalized, relevant, and timely financial nudges and incentives.
Do you want to know more about our solution? Request a demo