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The Future of Finance & Fun: How Fintech & Gaming are Shaping the Industries

Author: Albany Beck
Posted in: Insights
Read Time: 4 Min Read

The convergence of finance and gaming is revolutionizing the landscape of both industries, and the impact of this intersection is reshaping the way we engage with money and entertainment. The emergence of fintech has disrupted the traditional finance industry and introduced new ways of managing money.

On the other hand, gaming has long been a popular leisure activity, and the advent of digital platforms and mobile gaming has brought it to a new level of accessibility and reach. These two industries, which were previously considered disparate, are now converging in ways that are not only enhancing the gaming experience but also transforming the way we perceive and interact with finance.

As a result, there has been a surge of innovative startups and established companies alike, seeking to leverage the synergies between these industries and create novel products and services that can cater to the evolving demands of consumers.

Insightful Data: Key Statistics & Trends 

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As these industries continue to evolve, we are seeing exciting new opportunities and significant challenges and risks emerge.

Fintech and gaming share some fundamental similarities. Both are built on technology, data, and customer experience. Fintech companies use technology to create new financial services, while gaming companies use technology to create engaging experiences that keep players coming back for more. Both industries are also heavily regulated, and both face significant challenges in terms of cybersecurity and data privacy.

The Game-Changing Power of Gamification in Fintech

One of the most exciting trends in fintech and gaming is the rise of "gamification." This is the process of adding game-like elements to non-game contexts, such as financial services.

Gamification has become increasingly popular in recent years, as it can help to increase engagement, motivation, and loyalty. In the financial industry, gamification can be used to educate customers about complex financial concepts, encourage them to save and invest, and reward them for good financial behaviour.

According to a report by MarketsandMarkets, the gamification market is projected to grow from $9.1 billion in 2020 to $30.7 billion by 2025, at a compound annual growth rate (CAGR) of 27.4% during the forecast period. The report notes that the rise of mobile devices, social media, and the Internet of Things (IoT) is driving the growth of gamification across industries, including finance.

In the financial industry, gamification has been used to create savings challenges, investment simulations, and even virtual stock trading games. For example, Acorns, a popular investment app, uses a round-up feature that rounds up purchases to the nearest dollar and invests the spare change in a diversified portfolio of exchange-traded funds (ETFs). Acorns also offers a "found money" feature, which gives users cashback when they shop with one of the app's partners.

Another example is Robinhood, a commission-free trading app that has popularized stock trading among millennials. Robinhood uses a simple, user-friendly interface that makes it easy for users to buy and sell stocks, options, and cryptocurrencies. The app also offers a rewards program that gives users free stocks for referring friends to the app.

Gamification is not without its risks, however. Some critics argue that gamification can encourage risky behaviour, such as excessive trading or taking on too much debt. There is also a risk that gamification can create a false sense of security or oversimplify complex financial concepts.

In addition to gamification, fintech and gaming are also intersecting in other ways. For example, blockchain technology, which underpins cryptocurrencies such as Bitcoin and Ethereum, has the potential to transform both finance and gaming.

Blockchain can help to increase transparency, reduce fraud, and create more secure and efficient payment systems. In gaming, blockchain can be used to create unique in-game assets that can be bought and sold on a decentralized marketplace.

The future of finance and fun is looking increasingly intertwined. The rise of gamification, blockchain, and other technologies is creating new opportunities for innovation and growth, but also new challenges and risks.

As these industries continue to evolve, it will be important for regulators, businesses, and consumers to work together to ensure that these technologies are used responsibly and ethically.

The Power of Gamification: Statistics Show Significant Benefits for Employee Engagement and Learning

Gamification in the workplace is no longer a mere buzzword. Recent studies indicate that it has become a crucial tool for boosting employee productivity and engagement. According to a survey, an overwhelming 95% of employees prefer a gamified work experience. In addition, 78% of job seekers said that gamification in recruiting would make a company or position more desirable to them.

Gamification not only makes learning more engaging but also increases the productivity of 90% of workers, leading to an increased desire to be engaged while at work. Moreover, gamification helps workers to stay focused and avoid distractions. For instance, gamified training increases motivation in 83% of workers, whereas regular training without gamification elements leads to boredom in 61% of employees.

A gamified workspace increases employee happiness by 89%, improving productivity and retention. Approximately 69% of workers reported that they would stay at a company for more than three years if gamification was used in some way in the workplace.

Interestingly, almost half of American workers are casual gamers outside of work, with as much as 24% playing games on the job, including CEOs and top-level executives.

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Gamification also results in better outcomes for companies, with 14% higher scores on skill-based assessments and 11% higher scores on factual knowledge tests. However, 80% of workplace gamification efforts fail to meet a company's objectives due to poor planning and design, and a lack of creativity, and meaning.

When used to incentivize workers, gamification significantly improves customer satisfaction and employee performance.

In one case study, a customer service agency, LiveOps, launched an employee app with a rewards program to combat high turnover rates and low morale. After launching the program, participating employees outperformed their peers, improving by 23% in average call-handle time and raising customer satisfaction by 9%.

Gamification has an overwhelmingly positive effect on user engagement, with a 48% increase in employee engagement, leading to better engagement and a stronger desire to be engaged in any particular task. Incorporating gamification into everyday work and training also helps improve employee skill retention by approximately 40%.

Finally, gamification has been linked to a 50% improvement in student productivity, with some instances seeing an improvement in test scores by as much as 34%. This has resulted in roughly 75% of all K-8 teachers in the United States using digital games for instruction. Additionally, nearly 70% of students prefer gamified classes and learning experiences over traditional education methods, citing increased motivation and engagement as the primary factors.

Overall, gamification has become an essential tool for companies and educators looking to boost productivity, engagement, and retention. It presents a fun and practical problem-solving environment with real opportunities to refine skills, providing instant and automatic feedback.