Saving has always been a pain point for many Americans. With 2020 being the year of a pandemic, saving is even more difficult. In September of 2020, the rate at which people were saving was 14.3%, down from 33.7% in April. This is to be expected given the amount of jobs lost, businesses closing, and unexpected health costs. While this rate should gradually increase as the pandemic hopefully eases, there is still an underlying issue, which is American’s do not like to save.
Thanks to increases and growth in financial technology, there are ways to help incentivize individuals to save. This can be through one-time bonuses, increased interest rates for online savings accounts, or automating the saving process.
Now, there are new ways to entice people to save, through gaming and contest.
Gamification of Saving
You all have seen games like Candy Crush or Duolingo. Simple yet addictive apps that keep you glued to the screen for hours. Financial companies are taking note and finding a way to combine gaming and saving.
For example, there are companies that run contests weekly for those that actively save. By earning tickets into the drawings depending on how much you save, it motivates people to save more. Now, with gaming, people can begin playing games and discovering new ways to actively save money.
The main reason gaming and finance works can partially be attributed to Generation Z growing up with technology and video games. In these games, some of them require you to earn and save money to succeed in the virtual world. This is done through quests and tasks.
Now, that is not much different than real life. People work and earn an income to save for events or purchases later in the future. By taking that and turning it into a game, it seems less of a chore for the end user. If you go further, by offering several different games, saving begins appealing to a wider audience.
The Future of Gaming and Finance
You are certainly going to see gaming and saving continue to grow as a market niche. As Generation Z, the first generation to grow up completely with technology, continues into adulthood they will look for fun and efficient ways to begin saving.
Currently, the only motivation to save through a traditional bank account includes willpower and a desire to purchase a product. That is easy to navigate thanks to credit cards and instant gratification. Instead, gaming will put the motivation back into saving rather than diving deeper in debt.
Once the pandemic blows over, there is going to be a renewed sense and urgency to be financially well. With that, financial institutions are going to find new ways to attract deposits, and gaming will be a part of that process. Benefiting both users and the financial industry, video games of old are turning into a useful product that will help lay the foundation for financial well-being.