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“$20 for entering name and address? And this is just a step #1 out of 7 steps.” Imagine you have given an option to earn money while opening an account, instead of providing the details on the age-old boring screens. Which one will you choose?
If you have answered first approach – that’s the impact of Gamification. According to a study by MagnifyMoney, the average sign-up bonus for a new credit card in the US in 2022 was approximately $324. Few premium credit cards offered more than thousand dollars. The idea here is to distribute this sign-up bonus over the card issuance user journey to keep customer engaged and motivated to complete required steps.
Gamification has emerged as a powerful tool for financial institutions to engage customers in a variety of contexts. One area where gamification has shown a particular promise is in digital card issuance, where it can be used to create a more engaging and memorable experience for customers. A report by Accenture found that 64% of customers would switch to a bank that offered better rewards and experiences.
As a bank/financial institution, the prime goal is to have 100% conversion rate from potential to real customer. And Gamification taps to keep customer engaged once the journey starts.
The steps to open a new account or card in the banking world can vary depending on the institution and the type of account or card being opened. However, here are some typical steps that a customer may need to take:
Submit an application: This can often be done online, over the phone, or in person at a bank branch. The application will typically require personal information such as name, address, date of birth, and social security number, etc.
Verify identity: To prevent fraud and ensure security, the bank will need to verify the customer's identity. This may involve providing a government-issued ID or other documents to prove identity and address.
Provide initial funding: For many types of accounts or cards, customers will need to provide an initial deposit or funding. This can be done via electronic transfer, check, or cash deposit. Customer will be motivated to fund immediately to fetch few rewards.
Sign account or card agreements: Customers will typically need to sign agreements outlining the terms and conditions of the account or card, such as fees, interest rates, and other policies.
Paperless document delivery: Although optional, this can save lot of money. Customers will be encouraged to opt for paperless delivery in return for additional rewards.
Digital Issuance: Optional step – FI/Bank can hook a customer immediately by offering more rewards for digital issuance of Credit/Debit card so that customer can download bank’s app or push it in ApplePay, GooglePay or SamsungPay.
First transaction/s: Optional step – Again, FI/Bank can push for a habit in return of rewards that customer should complete first few transactions.
Social media spread: Optional Step - Customers can be involved in the marketing by asking them to spread a word over social media.
The realization of earned rewards/money can be bank’s decision whether to provide immediate gratification or wait for 90 days period.
A latest survey by Experian found that millennials are the most interested in gamified banking experiences, with 70% saying they would be more likely to choose a bank that offers gamification.
Connect: https://www.linkedin.com/in/maheshpawal/
This content is provided by an external author without editing by Finextra. It expresses the views and opinions of the author.
Nick Green Director at Purple Patch Broking Ltd
20 August
Venkatesh P Co-Founder and Director at Maveric Systems
19 August
Carlo R.W. De Meijer Owner and Economist at MIFSA
Nicole Pienkos Head of Regional Banking at FIS
16 August
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