When was the last time you got excited about your EMI repayment? Probably never? What if we told you debt repayment can be made exciting? Sounds too good to be true, right!
Imagine: As you unlock your phone, a playful notification pops up. "Hey there! Ready to complete your financial milestone today?, A surprise awaits!". Suddenly, the mundane task of debt repayment transforms into a game, and you find yourself intrigued.
In the realm of personal finances, where bills and EMIs lurk around every corner, users find it difficult to manage their payments. The intersection of financial services and game design brings in a powerful solution to make money management approachable. It turns the mundane task of debt repayment into an engaging adventure.
Let's dive into the world where debt payoff meets game design to save the day!
How does gamifying debt payoff benefit?
Psychology is the reason you buy something on Amazon even if you don’t need it. It’s why you are watching another episode of Breaking Bad on Netflix at 3 AM. It’s why you can’t help but want to complete one more level in the game. Understanding these basic human urges and incorporating them as gamification elements into apps has sky-rocketed the engagement level. Gamification is a very clever use of human psychology. It triggers real, powerful human emotions. These emotions are linked to creating positive user experiences. Every time a person wins, it increases the dopamine rush. When the user feels like they have achieved something, they are definitely going to come back for more.
Debt repayment is a serious task. Incorporating game elements into this makes it more interesting for users. By sprinkling a bit of fun on the serious apps, we can transform budgeting into a thrilling quest for users! This positive reinforcement improves user behavior. It also enhances the overall experience, making the path of financial freedom feel more like a rewarding adventure. Let’s look into the other benefits that gamification brings to the plate:
Motivates Users: Incorporating game elements like points, badges, leaderboards, and challenges into the debt repayment apps, motivate users to reach their financial objectives. Progressing through different stages of debt repayment and achieving several milestones along the way, instills a sense of accomplishment and celebration among users.
Better decision-making: The debt repayment apps provide a step-by-step plan for paying off based on the interest rate, pending total amount and monthly installments. It also compares different plan options and suggests the best results. Providing a clear view of the progress and ways to pay, it facilitates improved decision-making among users.
Effective debt repayment: Gamification may assist users by giving them tools to keep track of their spending and due payments. Elements like in-app challenges, reward badges, and celebratory posters within the application cultivate a sense of progress and achievement, transforming each payment into a stepping stone towards financial freedom for the user.
Better financial literacy: Incorporating educational games and quizzes inside the app makes users easily understand financial concepts. It encourages them to investigate other financial possibilities to repay their debts, demystify complicated areas, and assist users in navigating through the world of financial jargons.
Improves user engagement and retention: Infusing the elements of “play and achieve” into the user experience, gamification creates a more interactive environment. This debt repayment strategy heightens engagement and makes the app more appealing. It creates a positive experience loop that also significantly contributes to long-term user retention.
Ways to Make Debt Repayment Fun
Paying off debts need not be a daunting task. Gamification makes debt repayment, interesting, approachable, and pleasurable by using the components of financial services with game design. But what exactly are these game elements that make apps so compelling?
Goals and Challenges: To spice up things, Gamified challenges and quests can be used. By completing certain challenges, users can get additional bonuses. Breaking down the target into achievable levels will allow users to enjoy the progress without feeling pressurized. For example, video games generally make the first level easy to get you hooked on the game. As you go on, the level of difficulty becomes more challenging. This can be applied while planning the levels in the debt payoff game. Also, having some little pop-ups that ask users to pay a little extra and see how far they can move forward, encourages them to attain their goals faster.
Prices and rewards: Who doesn’t love rewards? It can be a virtual trophy for paying off a credit card or a special badge for consistently repaying or gifting a scratch card for repaying before the due date. Upon achieving certain objectives or goals, users can be rewarded with points or badges. These motivating elements keep them hooked and encourage them to win more. Additionally, they can also be given access to new features or titles for completing certain milestones in the progress. These little wins will make them push more and also add an element of fun to the process.
Progress Bars: Providing trackers or sliders can give a clear picture for users to see how near they are to completing their entire repayment. Watching that bar fill up as the users make payments provides a sense of accomplishment to them. It will motivate and help them to stay focused, giving a visual representation of their progress. The most effective aspect is that it triggers users to be financially prudent when they see how long it will take to pay their debt off. Also, when the payment is due, users can be reminded with notifications. This makes sure that they don’t miss out on it!
Educational Quizzes: Educational games and quizzes can be a fun way to engage with the users. These interactive exercises help them learn about financial ideas, ways to reduce debt amount, calculating interest rates. These apps may also suggest strategies for paying off debts effectively. Interactive elements about money provides valuable insights. Moreover, it makes them feel that their journey to financial literacy is more like a game than a boring lecture. It will be a perfect blend of fun and learning.
CASE STUDY BY FLYY
Transforming Student Credit with a Gamified Approach
StuCred is India’s most trustworthy Real-Time Student Credit App. StuCred offers short-term, interest-free “pocket-money” credits to Indian College students. It aims to educate and empower them, the leaders of tomorrow, while contributing to the growth of their credit scores.
However, even in this innovative ecosystem, a common hurdle persisted. Debtors not paying the debts on time.
Solution: The Gamified Intervention
Understanding the problem, Flyy sought a solution by introducing 2 elements in the app.
Gamifying the platform to encourage timely payments
Rewarding the users to make the app more engaging.
The above strategy proved to be a game changer. The incorporation of quizzes within the app turned the repayment journey into an interactive and educational experience for the students. To sweeten the deal, a “Cashback Campaign” was also introduced to entice users with instant rewards, where students get a cashback of Rs 25 every time they repay their loan before the due date.
Flyy incorporated these gamification methods into the StuCred app in February. The impact was nothing short of spectacular! The quizzes and scratch card campaigns became powerful motivators encouraging students to repay their loans on time and reap immediate rewards.
By May - July, StuCred witnessed an astounding 94% on-time repayment rate.
Gamifying debt payoff is a strategy that revolutionizes the user's approach to debt payment. StuCred is one big example of it. By understanding the psychology of students, and making the process engaging, educational, and rewarding, StuCred not only improved its repayment ratio but also helped students in managing their money.
The road to becoming debt-free for a user is a journey. Sometimes, the journey takes a long time, and other times just a short stroll around the block. But the ultimate destination for a user is to become debt-free.
Gamifying debt repayment turns financial chores into a lively game. It creates a rewarding experience for both businesses and users. It is an ultimate win-win! Balancing the fun elements with the seriousness of financial matters is the magic here. This innovative approach encourages users to take charge of their financial journey in a fairly enjoyable way. It is all about making the process dynamic, interactive, and surprisingly enjoyable!
Why settle for regular when you can make debt repayment fun, enjoyable and interactive? Incorporate the charm of gamification into your debt repayment app with Flyy.