Do Banks Need Gamification in 2025

Do banks need gamification? Gamification is a game-changer in a time where traditional banking practices don’t meet the expectations of tech-savvy consumers. From improving retention through entertaining, game-like experiences to attracting new users with alluring challenges, rewards, and achievements, gamification is revolutionizing the way banks engage with their customers.

Customer engagement and retention are more important than ever in the rapidly changing world of digital banking. The expectations of tech-savvy consumers are no longer satisfied by traditional banking techniques. Here comes gamification, a technique that turns routine banking chores into fun and fulfilling experiences by incorporating game-like aspects. Banks may now boost retention, increase engagement, and add distinctive features to their services by implementing features like leaderboards, challenges, badges, and points, making the user experience more engaging and fun.

This article explores the fundamental ideas, advantages, and difficulties of gamification as it relates to banking. To demonstrate how gamification has affected the banking industry, we will also look at case studies and real-world instances. Lastly, we’ll examine the next developments that have the potential to influence the sector. As we work through these observations, it becomes clear that gamification is an essential tool for contemporary financial institutions rather than just a trendy term.

Table of Contents

Why Do Banks Need Gamification?

First, we start with the question “What is gamification?” The use of game-like elements in non-gaming environments to increase the enjoyment and engagement of procedures is known as gamification. In the banking industry, this means adding elements to online and mobile banking platforms, such as leaderboards, challenges, points, badges, and rewards. The intention is to turn mundane financial chores into dynamic experiences, encouraging users to connect with the app more thoroughly.

The psychological foundations of gamification are what make it so effective. Dopamine, for example, is released when tasks are completed and incentives are obtained, producing a pleasurable experience that promotes continuing use. Additionally, elements like progress bars can be used to capitalize on the idea of loss aversion, which states that users are encouraged to keep their progress. These bars show users how near they are to reaching their financial objectives, like saving for a trip.

Inducing a flow state, in which users are fully engaged in an activity, enhances its enjoyment, and helps them focus their attention, is another crucial component. Gamification may greatly increase user pleasure and engagement by utilizing these psychological triggers.

Do Banks Need Gamification?

Gamification Stats and Facts Worth Knowing About

Strong data and statistics back up the effects of gamification in banking. A 2021 study conducted by Zaguan University examined how gamification affects user engagement by examining data from 208 users of the Mint software, a personal financial management application. The results were remarkable: 62.2% of users said they planned to keep using the app because of its game-like features, and gamification raised user motivation by 47.4%. Additionally, 54.9% of users said they had a more positive opinion of the app, and 53.4% said it was more useful.

These figures are not unique. With a cumulative annual growth rate (CAGR) of 27.9%, the worldwide gamification market is expected to reach USD 116.68 billion by 2032 from its 2022 valuation of USD 10 billion. According to the BBVA Open Innovation Report, gamification has already been implemented by some of the biggest banks and financial organizations in the world, resulting in a value of $12.25 billion in 2021.

With a market value of USD 3.8 billion in 2022, North America is at the forefront of this trend, mostly due to the gamification of the retail sector. It has also been demonstrated that gamification enhances financial literacy. For instance, consumers can improve their financial habits by understanding complex financial concepts through educational challenges and quizzes in banking apps.

Do Banks Need Gamification Key Principles and Features

The foundation of gamification in banking is a set of fundamental ideas and characteristics intended to improve customer happiness and engagement. These ideas use psychological cues to increase the interactivity and enjoyment of financial work.

Key Principles of Gamification?

Motivation through Rewards: Gamification taps into intrinsic and extrinsic motivation by offering points, badges, achievements, or other rewards that drive user engagement.
Clear Goals and Feedback Loops: Effective gamification defines clear objectives and provides immediate, continuous feedback, helping users track progress and stay motivated.
Challenge and Progression: Players (or users) are given challenges that escalate in difficulty, providing a sense of growth, mastery, and personal development.
Voluntary Participation: The best gamified systems feel optional and engaging rather than mandatory or forced, encouraging genuine interest and commitment.
Behavioral Influence: Gamification is rooted in behavioral psychology—encouraging specific actions through reinforcement and habit-forming techniques.

Key Features of Gamification

Points and Scoring Systems: Measure performance and reward progress.
Leaderboards: Encourage healthy competition by displaying rankings among users.
Badges and Achievements: Visual rewards that signify milestones or accomplishments.
Levels and Progress Bars: Indicate user journey stages and motivate continued use.
Storytelling and Narrative Elements: These add emotional context and keep users invested.
Challenges & Quests: Give the experience direction and structure.
Social Integration: Enables sharing, collaboration, and competition with peers.

Benefits of Gamification in Banking

Gamification has numerous benefits for banks and their customers. Enhanced customer engagement is one of the main advantages. Banks may increase user engagement and encourage users to spend more time on their apps by adding game-like aspects to mundane financial chores. Because users are more inclined to stick with an app they enjoy and find gratifying, this increased engagement frequently results in better customer retention.

Improved financial awareness is yet another important advantage. Gamified educational challenges, simulations, and quizzes aid users in comprehending difficult financial ideas like investing, saving, and budgeting. Customers are given the ability to make better financial decisions as a result, and the bank is positioned as a trustworthy source of financial data, which opens up chances for upselling premium products and services.

Additionally, gamification helps to promote new services. By encouraging customers to experiment with new features, reward-based gamification can boost the rate at which these services are adopted. Gamification also yields useful information about user preferences and behavior. Banks can better understand their clients’ financial objectives and requirements by examining how users engage with gaming features. This enables them to provide more specialized goods and services.

Challenges of Gamification

Gamification has its own set of drawbacks in banking, despite its advantages. One of the main issues is maintaining financial management’s seriousness. To preserve the essential features and the professional aspect of banking, it is imperative to find a balance between gamification and the goal of making banking more interesting.

Serving a varied audience presents additional difficulties. People of different demographics, each with their own objectives, passions, and degrees of financial literacy, use digital banking systems. It can take a lot of work and resources to create gamified experiences that appeal to such a large audience.

Finally, the process of gamification is continuous rather than a one-time event. For their gamification methods to remain effective over time, banks must constantly update and enhance them. Satisfying consumers’ shifting demands and tastes calls for a dedication to frequent updates, fresh challenges, and developing game mechanics.

Do Banks Need Gamification 5 Unique Examples

1. Standard Chartered’s 2021 Twist & Win

Standard Chartered Bank offered unexpected cashback for credit card transactions through gamification in their 2021 Twist & Win campaign. Through customized onboarding and a funny gumball machine animation, the campaign, which was incorporated into the bank’s mobile app, provided real-time cashback rewards. The app was gamified in an effort to entice users to utilize their credit cards. Because it increased consumer spending and participation during the promotion, this tactic was effective.

2. Monobank’s Mascot and Badge Reward System

Gamification has been effectively used in the Ukrainian banking software Monobank to increase user engagement. Completing their profile information is one of the many in-app actions for which users can earn achievements. By encouraging more frequent interaction with the app, this badge and reward system builds user loyalty and a sense of success.

The Monobank app’s iconic cat mascot is yet another distinctive feature. This character distinguishes the app from competitors and lends it a distinctive and memorable feel. Furthermore, studies show that mascots help build brand trust and enhance customer rapport.

3. Progress Bars for Qapital and Starling Bank Win

By using progress bars to assist clients in visualizing their savings objectives, Starling Bank and Qapital have adopted a novel strategy. For example, users can talk about their saving objectives with others using Qapital’s Shared Goals tool, which adds a social component that may encourage users to accomplish their goals more quickly. The psychological concept of loss aversion is used by this visual depiction of progress, which motivates users to save more and accomplish their objectives more quickly.

4. Revolut’s Lotteries and Leaderboards

Revolut started a university competition as it was growing in Europe, encouraging students to sign up and raise their school’s ranking. The leaderboard, which was aimed at a younger audience, focused on communities rather than individuals. Our yearning for community was the main emphasis of this gamification strategy. Common objectives are a potent motivation because they can foster a strong sense of community. The outcome is more than 100 universities and thousands of students that joined in.

Gamification has also been applied by Revolut through weekly lotteries, where users may track their position relative to others and earn points that can be exchanged for entries into the lotteries. In addition to making the app more interesting, this competitive feature encourages users to complete more transactions, which raises app usage.

5. Monzo’s Savings Challenge

Monzo is renowned for its gamified banking experience and was among the first challenger banks in the UK to employ apps. Despite having no physical locations, Monzo has amassed over 5 million users because of features like achievement challenges and a task-based onboarding menu.

Monzo’s “run and save” plan for 2022 is a notable example. By linking their accounts to Fitbit or Strava, Monzo customers may transfer money to their savings “pots” after they hit their running goals. These pots might be restricted or locked, which would make it more difficult for users to access their money and encourage them to stick to their savings objectives.

The Future of Gamification in Banking

The three primary trends that answer the question “Do banks need gamification?” are cloud-based gamification solutions, the expansion of big financial platforms, and the incorporation of AI. By using AI-driven gamification to analyze user behavior and preferences, banks will be able to provide individualized experiences that will increase customer satisfaction and engagement. It will be simpler for banks to introduce and maintain gamification elements without incurring large upfront expenditures because of the scalability and flexibility offered by cloud-based solutions.

Additionally, the growth of mega financial platforms where financial services are heavily interwoven with technology will encourage more people to adopt gamification. By consolidating different financial services under one roof, these platforms will provide a smooth and captivating user experience.

Gamification is expected to become a ubiquitous aspect of the banking sector as these developments come together, changing the way consumers engage with their financial institutions and enhancing the fun and engagement of banking.

Frequently Asked Questions on Why Do Banks Need Gamification?

1. What is the potential impact of gamification on long-term financial behavior in banks?

Gamification doesn’t just increase engagement, it can shape habits. When banks integrate goal-setting, reward systems, and behavioral nudges into their platforms, users are more likely to develop healthy financial routines. For example, rewarding users for saving consistently or paying credit card bills on time can foster lasting discipline. Over time, these gamified actions can replace poor spending habits with positive financial behaviors.

2. Can gamification be used to enhance employee performance within banks?

Yes, internal gamification can be just as impactful. Many banks are adopting gamified dashboards to boost employee training, sales performance, and compliance adherence. Leaderboards, achievement badges, and real-time feedback systems can motivate employees, improve learning retention, and align team efforts with business goals, ultimately enhancing customer service and operational efficiency.

3. What role can AI play in advancing gamification in banking?

AI may personalize gamification by analyzing user behavior and tailoring goals, challenges, and rewards to each user’s preferences. This dynamic customization boosts relevance and effectiveness. For instance, AI could suggest a savings challenge during high-income months or offer tailored financial tips when spending spikes, making gamification more intuitive and impactful.

4. How does gamification support ESG (Environmental, Social, and Governance) goals in banking?

Gamification can promote ESG values by encouraging responsible behaviors like paperless banking, carbon footprint reduction, or financial inclusion. For instance, banks can reward users for opting into green banking services or completing financial literacy modules, aligning user behavior with sustainability initiatives.

5. Is gamification scalable for large, traditional banks with legacy systems?

Scalability is possible, but it requires investment in API-driven architectures and modular fintech integrations. Traditional banks often struggle with innovation due to outdated infrastructure. However, with the adoption of cloud-based platforms and agile development models, even large banks can deploy gamification features without a complete system overhaul.

In conclusion, gamification offers a fresh and innovative approach for banks to connect with their customers in a more engaging and meaningful way. As digital natives demand more interactive and personalized experiences, traditional banking models must evolve or risk losing relevance. Gamification doesn’t just make banking more enjoyable, it can drive financial literacy, encourage responsible money habits, and deepen user engagement through rewards and challenges.

While it’s not a one-size-fits-all solution and must be implemented carefully to avoid trivializing serious financial decisions, the benefits are compelling. Banks that adopt gamified elements with clear objectives, ethical data use, and customer-centric design can stand out in a competitive digital landscape. Ultimately, gamification is not about turning finance into a game, it’s about using proven motivational techniques to empower users, improve retention, and build long-lasting loyalty. I hope with this article we have convinced on why do banks need gamification