Through Stephen Mathai-Davis

Gamification is no longer just for children. As the democratization of modern finance enters its second and third phases, the fintech revolution continues to embrace many of the techniques and designs popularized by video games to address the challenges of usability and access. This phenomenon has accelerated since the advent of the COVID-19 pandemic, as the number of young investors has increased exponentially.

Subscribe to Daily Crunchbase

Amid unprecedented unemployment rates, the US stock market has become one of the most trusted sources of wealth with annual returns of around 10% over the past century, according to Forbes. In fact, fintech gamification has grown into a nearly $ 200 billion global industry with around 3 billion consumers across all demographics. It’s booming; it exceeds the market size of the entire film industry.

Stephen Mathai-Davis, founder of Qai

By making it more intuitive and fun, fun investing simplifies the investment selection process. It’s more than just a dopamine booster; it makes investing more accessible to a new generation of investors who are just getting started.

Gamifying investing is more than just introducing rankings and badges. When we think of gamification, we focus on how to borrow from the concepts and techniques, which underpin game design. You don’t need a tutorial to explore the level of the video game you’re playing because you already intuitively know what to do. Imagine if you could apply the same logic and experience when trying to invest using your favorite mobile app? It is a real gamification of the investment.

Given the growing interest in improving financial literacy and literacy among young investors, the gamification process of the investment process will be a major driver of financial education. The process of simplifying and making the investment journey more intuitive makes it easy to solve complex challenges and helps everyday investors navigate a world cluttered with jargon once relegated to the Wall Street elite.

By its nature, gamification inherently and inextricably pulls us into alignment with long-term interests while making the journey as exciting as the end goal. This is one of the reasons why gamification techniques are fueling the trend of goal-based investing and encouraging investors to think about investing in the context of tangible goals. Therefore, we will not stretch the credulity by saying that the future gamification of the fintech revolution will lead to better results for users. By better results we mean that users will achieve the goals and objectives that really matter to them personally on an individual level, not a general end goal.

It’s no secret that gameplay mechanics that enhance the overall user experience, reward positive behavior, and encourage consistency while educating players are beneficial. Some elements of gamification can even make money management more tangible, giving users a better understanding of their wealth while minimizing human error. Additionally, gamification can use machine learning to capture data, which financial technology companies can leverage to further improve their products, innovate, and deliver even more value to investors.

That said, too much gamification can be dangerous. After all, at the end of the day, investing in the stock market – or any type of market – is not a game. Some fear that too much gamification will desensitize users from the risk inherent in investing. This has been a real problem in recent years, especially with the proliferation of options trading solutions for retail investors.

The desensitization process can be expressed in several ways. Whether we’re talking about falling confetti or free giveaways, actions numb the user’s senses to risk. This can be very dangerous and encourage investment behavior that a user would not normally adopt. It’s not just about the dopamine effect. The fact that users begin to focus solely on the reward rather than the risk in the reward-risk relationship distorts the very purpose of a market. There will always be winners and losers – not everyone will win in the investing game all the time.

Ultimately, investing in stocks – or, for that matter, other assets like Bitcoin – is not a game. Confusing gambling with investing can cause users to lose sight of the real risks of investing. . This will be a challenge for the FinTech industry over the next few years, especially as regulators begin to pay more attention to the application of gamification to investing (and trading).

We believe that artificial intelligence will help alleviate the challenges that will arise with the growth of gamified experiences in fintech platforms. AI can empower fintech users to make more educated and informed investment decisions that are rooted in logic rather than emotions. AI can also help further democratize investing for young investors (and all novice retail investors) who traditionally don’t have access to the same tools as the pros, without them having to rely solely on gamification. .

AI has the ability to dramatically influence businesses and individual investors by providing a wide range of tools that empower people to think about how they integrate information, and that strengthen decision-making and analysis. Datas.

We believe the future of the fintech revolution will be powered by the adoption and application of healthy (and positive) gamification to the investment experience. This will be a key driver in the movement’s desire to truly democratize modern finance and empower a new generation of investors.

Stephen Mathai-Davis is CEO, CIO and founder of Q.ai, an AI-powered investing app that allows anyone to build wealth by investing with the click of a button.

Stay on top of the latest rounds of fundraising, acquisitions and more with Crunchbase Daily.