How Motivational Design Can Help FinTech Startups

  The competition in Nigeria’s FinTech space is heating up. In some niches, there are tens of startups springing up every other year, hoping to challenge those already in business. Every entity in the space seeks strategies that could help them outsmart their competition. If your venture plays in this arena and you’re looking to get ahead of the pack, you may try leveraging motivational design.

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What is Motivational Design?

Motivational design is a framework that leverages psychology, behaviour science, and gamification to design products that inspire and motivate users to take action. It’s basically about deploying tactics that fuel and maintain user motivation. This concept has been widely used in industries such as gaming, healthcare, and fitness. However, it is equally relevant in the FinTech industry, where, as we’ve alluded, the battle for customers’ hearts—and patronage –is tough. Examples of motivational design in this context may include:

• Offering cash prizes for attaining milestones (e.g. savings, use sessions, number of transactions, etc.)
• Conferring badge rewards for reaching specific goals
• Using leaderboard competitions to get people to use your product more
• Structured referral programs

We will discuss seven ways you can benefit from intentionally designing a strategy to arouse positive customer interaction.

Enhance User Experience

User experience is critical in the FinTech industry. Users expect seamless, intuitive, and engaging interfaces that make financial tasks easy and enjoyable. You can achieve this by creating product features that are not only functional but also fun and engaging. In summary, you should build products that are user-centred. This enables you to increase user satisfaction, retention, and loyalty.

Drive User Behaviour

Motivational design can help FinTechs drive user behaviour by leveraging gamification techniques. When you spruce up your platform with game elements like rewards, badges, and leaderboards, you’ll encourage users to engage with your products more frequently and for longer periods. This makes it possible for you to achieve your business goals, including increasing the number of transactions, account signups, or investment portfolios you secure.

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Increase User Engagement

If you’re going to retain users and drive growth, you’ll have to raise your user engagement numbers. Motivational design lets you score big here by creating experiences that are interactive, personalized, and emotionally resonant. Do this with the help of data and behavioural insights, and you’ll create experiences that boost user engagement and satisfaction. That’s a result that could naturally arise from fashioning experiences to suit user preferences.

Boost Financial Literacy

Users need to be financially literate if they’re going to make informed financial decisions. However, many of them lack the necessary knowledge and skills to manage their finances effectively. Motivational design, when executed in this sort of instance, can boost financial literacy by developing platform processes that educate and empower users. Create products that simplify complex financial concepts, so that people in your target market are more eager to utilize your offerings. They get to benefit too, as it’ll increase their confidence and competence in managing their finances.

Foster User Trust

Trust is critical in the FinTech industry. Users want to feel confident that their financial data is secure and that their money is safe. Motivational design can help fintech foster user trust by creating experiences that are transparent, reliable, and trustworthy. You may increase the confidence that users have in your brand by designing products that communicate security features and privacy policies clearly.

Increase User Adoption

Unless users are lapping up your solutions at a sustained rate, you may struggle to keep your FinTech venture afloat. So it’s vital that you nail this aspect of your operations. However, many users are hesitant to adopt new financial technologies. If you’re able to gamify the onboarding process for new users, you could draw in more potential customers. Make sure your product simplifies complex financial tasks and provides intuitive interfaces, so that user friction is minimized, and adoption rates climb.

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Improve User Retention

Seeking out new users for your solution should be a firm part of your growth strategy. But retaining existing ones is pivotal to sustaining your venture too. You can retain users with motivational design if you roll it out in ways that inspire and sustain interest in your platform and what it delivers. If your product keeps users motivated and interested, it’ll drive up user retention rates and reduce churn.

Final Words

Motivational design is a powerful concept which, when brought to life, helps FinTechs guide user behaviour to ends that strike their business targets while delivering real value. Featured Image Source: Learning Theories

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Did you find this article useful? Contact us: editor@connectnigeria.com

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This article was first published on 20th April 2023

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