Adding gamification aspects to digital services motivates users and helps nurture better savings habits.
In this high rate environment deposit holding institutions have looked to innovate their savings offerings, with digital capabilities sitting beside headline rates to attract new business.
Digital savings tools such as savings goals and progress meters have a spot in the limelight, promoting financial wellness and customer loyalty.
Our data, however, indicates that these tools are not a priority for many institutions. Among the banks we shop for our retail savings tracker, only 19% allow their users to set up savings goals in their mobile apps, and only 13% feature a progress meter that lets users keep tabs on their savings growth.
This means that banks are missing out on an innovative opportunity to engage with their customers and to support them on their financial wellness journey.
Saving money is generally considered a painful experience, with most consumers much more enjoying the experience of spending. For those that do save, it’s often tinged with guilt, as many consumers feel like they do not save enough money on a regular basis.
And this is where savings tools can inject some fun and playfulness into the mobile app by adding a level of gamification, which can be an effective and interactive way to motivate users to start saving regularly and, as a result, develop healthier banking habits.
On top of that, savings goals can provide users with a sense of achievement when the target is reached. The hard work is done, and the discipline has paid off. As a reward, users can now buy the item, go on the trip, or have the dream wedding for which they have been saving so diligently.
Positive engagement like this builds trust, increases user satisfaction, and, as a result, supports overall customer loyalty. Banks benefit from users seeing them as a partner in achieving better financial health by offering them the tools they need to meet their savings goals and to make financial management more attainable.
From a marketing perspective, offering a robust range of savings tools gives banks the opportunity to compete on functionality as well as interest rates. This can come in handy in case the bank’s rates cannot keep up with the high yields of direct banks or other competitive promotions, or when interest rates go down and become less of a differentiating factor. Financial institutions that have savings tools in their arsenal can put a spotlight on them to promote their savings products and continue to encourage users to keep up their savings efforts.
