From fantasy to reality
Gamification isn’t just about making investing fun, or empowering investors. It’s becoming a serious business. Wealth and asset managers of all sizes are developing their capabilities. And this is no niche strategy. Gamification can be applied to mass affluent, high-net-worth and institutional relationships. For example, insurers or pension funds could use gamification to help their own investors build a stronger connection between their finances and their real lives.
By creating a more tangible future, gamification could be a huge savings motivator for investors. Imagine setting a savings goal for your dream home, and being able to build, design and even tour (via virtual reality) a mock-up home based on your budget.
So how might the gamification of financial planning look? Clients would interact with their personal and financial goals through their firm’s game-based app. This approach could use retail bonuses like a free coffee to reward initial engagement (based on analysis of customer data — see my previous blog), and harness gaming techniques to encourage clients to work toward investment goals to meet their desired outcomes. It might even provide a virtual reality simulation of investment benefits for clients and their families. This would allow clients to visualize the benefits of their financial decisions, creating a stronger emotional desire to achieve their investment goals.
By creating a more tangible future, gamification could be a huge motivator for investors to save. Imagine setting a savings goal for your dream home, and being able to build, design and even tour (via virtual reality) a mock-up home based on your budget. Or how about seeing your child receive their diploma as they graduate from the college of their choice?
Collaborating to compete
It will not be easy for wealth and asset managers to devise strategies that successfully deliver on the immense potential of gamification. At a minimum, they will need to:
- Consider how gamification could support their wider strategic objectives
- Evaluate how gamification could be used both to enhance direct investor relationships and to support intermediary channels
- Identify the investor segments that are most likely to respond to gamification
- Collaborate with the right external partners across a range of industries
- Combine expertise in behavioral science, coding, investment knowledge, virtual reality and data analysis
- Connect virtual incentives with real-world rewards
For firms, the bottom line is that gamification could revolutionize client relationships and, in doing so, improve investor outcomes. It has the potential to create a virtuous circle of engagement, learning, trust and loyalty. Having more engaged and empowered investors will open up new opportunities for firms and clients alike, and may even pave the way for further industry convergence in the near future.
To take investor experiences to a new level, wealth and asset managers should apply learnings from gamification.