Total credit card debt has surpassed $1 trillion for the first time ever this year, with total household debt reaching $17 trillion, according to a report from the N.Y. Federal Reserve.

Meanwhile, the U.S. personal savings rate dipped to 3.5% in July, less than half the average going back to 1959, according to the U.S. Bureau of Economic Analysis. Americans’ savings rates do not instill confidence that they are adequately prepared for financial emergencies or retirement. As a potential end to the current monetary tightening cycle in the United States approaches, banks, too, are managing for potential softness and seeking new ways to manage deposits and top-line growth.

Against this backdrop, banks are increasingly evaluating how a renewed strength of purpose can lead to the proverbial “win-win.” The objective: Drive better financial outcomes for customers and increase consumer trust for improved engagement and bank growth. While banks have historically enjoyed high levels of trust, it has been dampened in the wake of the bank failures of the past spring.  

A survey by the Associated Press and the University of Chicago found that only 10% of respondents said they had a “great deal” of confidence in banking and financial institutions. While this could be partially explained by the timing of the survey — in the aftermath of the collapse of Silicon Valley Bank — this still suggests room for improvement.  

What approaches can banks take in this current climate?  

One answer that may not be obvious is gamification.  

Gamification within financial services is not new but is regaining some mindshare due to a cross-industry evolution of loyalty programs and their underlying premise for driving customer engagement. The new loyalty notion is to help customers drive positive behaviors beyond purchases and transactions; gamification in banking has evolved alongside this.  

Some examples of gamification in the financial services industry: 

• As early as 2013, BBVA in Spain launched BBVA Game which allowed customers to accrue points to win prizes.  
• Emirates NBD sought to connect with their customers’ physical life by linking a fitness account to their bank to track physical activity and reward customers for positive behavior with a higher savings interest rate for goal achievement.  
• Barclays sought to bring gamification to budgeting through its Sensible Spending game, which allowed users to earn points for meeting budgeting goals and thus driving better financial outcomes.  

But while many such examples were launched, they have not all proven durable in the long run and banks have shuttered many such offerings. 

In the U.S., a newer example is Truist’s Long Game, launched earlier this year. This mobile app provides users with rewards for achieving savings goals. The premise is straightforward and one that U.S. consumers are accustomed to: Perform financial actions and get rewards. Here’s the twist: Instead of rewards for spending, rewards accrue from establishing a savings goal and then achieving it. Customers earn coins and thus can win cash from the games (i.e., cashback) while also progressing toward their savings goal in the game.  

Why gamification? I asked Truist, which responded: “People will keep playing games, so the premise is to overlay this into an experience that drives an increase in savings balances for the customer while working for Truist.”  

Industry research from the Entertainment Software Association reinforces this notion. Sixty-five percent of Americans play video games, and smartphones are the most used devices for gaming, with 64% of active players.

Truist notes that “a savings goal leads to rewards while creating a daily engagement loop toward this long-term mission of saving.” The fun is additional motivation to help the process and, importantly for Truist, it is fostering deeper client engagement by driving higher online and mobile banking usage, the bank said.  

Given that gamification is a concept with precedent and mixed results, Truist did share that the bank is seeing really high engagement with Long Game users: five days a week on average. A key difference between Long Game and other bank efforts could be that the game helps the customer achieve a financial savings goal, and this transcends the game to provide a connection to the customer’s real life. Customer usage suggests that gamification is making a tangible difference in driving more savings for many customers, preventing an increase in personal debt levels, Truist said. 

How could smaller banks replicate such results? 

Pursuing a gamification strategy may require a focus on open technologies and partnerships. It will be key to empower bank customers by leveraging their data in ways that drive both insights and wellness.  

Using new technologies with safety considerations in mind is also important. This brings us back to how banks must reinforce their trust proposition, which can be framed as a trust equation. The trust equation consists of engagement, transparency, reliability and advocacy. The connection to transparency requires that banks use their unique position to engage in gamification without compromising trust, seeing value in customers opting in.  

More data is needed on Long Game’s ability to drive savings for Truist customers — and more such examples are required to make a case for gamification as a potential industry approach to increased customer trust and better outcomes. However, gamification could help position banks better to care for their customers and to serve the purpose of increased financial wellness.  

Hemal Nagarsheth is a Partner at Kearney, where he leads with a particular focus on the intersection of technology and innovation with banking and payments.