Written by
Benjamin Daniels
7 mins read
5 Gamification examples that improve the fintech user experience
While physical visits to the banks are decreasing by 36%, mobile transactions jumped by 121%. The future of online banking is undeniable and new fintech solutions create new opportunities for banks to engage with their customers.
One such example is Cake, a banking app that shares its revenue with its users! Even though they only started in 2020, Cake already acquired over 120,000 customers. How did they grow so fast?
Let’s take a look at how Cake built its own reward system to boost mobile app engagement with its users!
- 3 fintech trends to watch in 2022 (and how Cake is ready for them)
- 5 gamification examples that enhance the user experience
- How to gamify your fintech app like Cake
- Recap
3 fintech trends to watch in 2022 (and Cake is ready for them)
94% of finance companies surveyed in 2019 said they were confident emerging fintech will drive future growth for the industry.
Let’s take a look at the trends driving this transformation:
#1 An unstoppable rise in digital-only banking.
Soon, the brick-and-mortar approach to banking will seem just as outdated as a checkbook. Research shows that between 2017 and 2022, physical visits to bank branches are decreasing by 36%, while mobile transactions will see a 121% increase!
#2 Artificial intelligence is making banking more efficient.
By 2035, experts expect that AI will increase fintech profits by 31%. This rise will be in part due to a growing ChatBot market, that is estimated to reach a CAGR of 29.59% between 2022 and 2027! Additionally, 95% of all customer interactions are predicted to be powered by AI by 2023. Ahead of the curve, Cake already uses artificial intelligence to analyze users’ finances and recommend personalized rewards.
#3 Collaboration over competition.
When Revolut started in 2015, the company’s motto was ‘disruption’. However, traditional banks and fintech startups quickly found out how they could help each other. In fact, 82% of traditional banks say they wish to increase collaboration with fintech organizations. For example, Cake has partnered with Belgian bank Argenta to create a fully integrated cashback platform.
This shift is here to stay – aside from seeing the growth in fintech, another reason for the change is new European legislation called PSD2 that facilitates greater collaboration between banks.
#4 Bonus trend – the need for privacy.
Cake clearly understood how privacy is becoming an increasingly bigger topic in society. While all the big brands are trying to maximize their profits from consumer data, Cake is actually bringing the value back to its users. The fintech app analyzes your purchasing behavior and sells those to companies. Don’t worry, everything is anonymized!
In return, users get their monthly piece of… cake! The best part in our opinion? They’re 100% open with it!
5 gamification examples that enhance the user experience on Cake
In a nutshell, gamification is using game-like elements in a non-game context to help make the user experience more intrinsically motivating. That means building an app that is fun and satisfying to use!
Gamification examples in banking apps are shown to improve metrics across the board. Spanish bank BBVA, for example, boosted mobile app engagement with a points system that earns users a place in giveaways and raffles.
Cake also has some great gamification examples to show! Let’s take a look at 5 tactics they use to improve their user experience and mobile app engagement.
Community statistics motivate people to save more money
Cake wants to help you take control of your finances. A great example of that includes their spending statistics and graphs that show not just your own spending, but also compare it to other users! These comparisons are made with people in a similar demographic to you, to ensure that the feature is relevant.
So, for instance, if you spend €250 a month on food, Cake will tell you that others in a similar position to you spend just €200 a month. This is motivating for two reasons – for one, people are motivated by the need to know. Secondly, seeing the progress of others makes saving almost a sort of competition!
Not only does the social competition make it more fun, but research also shows that an in-app community can make 60% of users more loyal to your app.
Customized tags for transactions give users ownership
Personalization is an important part of motivating your customers. In fact, 94% of businesses say that customization is crucial to their success! This is because personalized features give customers ownership over the user experience.
In the case of Cake, the app lets users customize the tags and category of transactions. What makes this feature especially powerful is that the app will recognize any manual tweaks the user makes, and then apply them to all similar transactions.
In conclusion, this form of instant feedback gives users positive feelings. It’s nice to be listened to, and a great gamification example!
Digital confetti celebrates your onboarding process
This one is simple but highly effective. People cannot help but react positively to digital confetti. Amazingly, it is both cheaper and more motivating than offering cash prizes.
In Cake, the feature acts as a form of instant feedback, but also as a little fun reward that recognizes the effort of completing the onboarding process. When you consider that Day 1 user retention in digital banking is just 30%, then every little thing done to boost the mobile app engagement of users during their first moments is effort well spent.
Personalized cashback rewards boost mobile app engagement
Business magazine Forbes said that ‘cashback is king’ – and they’re right. In particular, younger customers love cashback. Research shows that 74% of those aged 18-23 would spend more if they were to receive at least 5% instant cashback.
Cake takes this a step further by personalizing cashback rewards and tailoring them to customer spending habits. This way, conversions are more likely to happen and Cake’s marketing becomes more efficient! For example, case studies show that personalized push notifications see a 54% conversion rate, compared to just 15% for mass messaging.
Monthly payouts let users form a community that shares in value
Without a doubt, this feature is the star of the show. Every month, users are rewarded with a share of the app’s revenue! Not only does this create fantastic customer value, (the payments have an average of over €2, almost 250K of total shared income), but it strengthens the community bond.
People are strongly motivated by the need to belong – and being a part of a community where everyone shares their benefits is a great way to do it.
How to gamify your fintech or banking app like Cake
Are you thinking of upgrading your app’s user experience? Then gamification will help you achieve just that! Whether you’re in fintech, banking, or any other kind of app, here are 3 steps that will help you take action:
Step 1 – Join us in a fully remote & interactive app gamification workshop
And bring your entire team! Our workshop is led by gamification experts and is 100% tailored to your app. First, we analyze your audience, goals, and the obstacles stopping you from getting there!
Step 2 – Bring your data
Knowledge is power. To understand where opportunities lie in your user experience, we perform a behavioral audit. Where are you losing engagement? What actions are interrupting the user experience? Once we understand the user journey, we can start reforming user habits.
Step 3 – Get a tailored gamification report & an action plan to drive user engagement back on your app
After having covered the science and theory behind gamification, it’s time to make it actionable! You’ll go home with a tailored, action-packed report to implement gamification in support of your strategy.
Recap
Growth in digital banking has outstripped traditional banks by an amazing 300%. Innovative fintech apps like Cake are showing finance the way forward.
3 fintech trends to watch in 2022
Surveyed in 2019, 94% of finance companies said they were confident that emerging fintech will drive future sector growth. These 3 trends will underpin that growth:
#1 An unstoppable rise in digital-only banking. Between 2017 and 2022, physical visits to bank branches will decrease by 36%, while mobile transactions will rise 121%!
#2 Artificial intelligence is making banking more efficient. 95% of all customer interactions are predicted to be powered by AI by 2023. Ahead of the curve, Cake uses artificial intelligence to analyze users’ finances and recommend personalized rewards.
#3 Collaboration is becoming more enticing than the competition. 82% of traditional banks say they wish to increase collaboration with fintech organizations. This is due to the faster growth of fintech, but also new European legislation called PSD2 that facilitates greater collaboration between banks.
5 gamification examples that enhance the user experience on Cake
In a nutshell, gamification is using game-like elements in a non-game context to make the user experience more motivating. Let’s look at some gamification examples from Cake!
- Community statistics make saving money motivating. Spending statistics on Cake show not only your finances but those of your peers.
- Customized tags for transactions give users ownership. Cake lets users customize the tags and category of transactions, and will automatically update all transactions based on any manual tweaks. This form of instant feedback gives users positive feelings!
- Digital confetti celebrates your onboarding! In Cake, this small reward recognizes the effort of completing onboarding. When you consider that Day 1 user retention in digital banking is just 30%, then making users’ first moments more fun is a great strategy to keep them engaged.
- Personalized cashback rewards boost mobile app engagement. Research shows that 74% of those aged 18-23 would spend more if they were to receive at least 5% cashback. Cake even personalizes cashback rewards to make conversions more likely.
- Monthly payouts create customer value and strengthen the community. Every month, users are rewarded with a share of the app’s revenue! This helps strengthen the community bond, as people are motivated by sharing benefits with each other.
How to gamify your fintech app like Cake
You can learn a lot from gamification examples like Cake. However, the key to success lies in tailoring your gamification strategy to your audience, branding, and business goals.
