Why You Might Be About to See More Fintech Loyalty Programs

Only three in ten consumers say they feel a sense of loyalty toward fintech brands.

Even fewer than three actively demonstrate their loyalty. And those that consider themselves loyal will still only engage with the app in a limited way – either to transfer funds or manage their bank accounts.

Fintech apps need to find ways to establish deeper connections with their users, which leads to a stagnant user base and low app stickiness. That’s why more apps in this vertical are searching for app solutions that transform their UX into one that delivers higher LTV, revenue, and daily active users.

Do Consumers Want More from Their Fintech Apps?

Fintech apps as we know them are not built to engage users outside their main functionality (to manage their accounts). But, looking at the bigger picture, is there demand for greater app functionality in this vertical? 

There are around 3.6 billion online banking users in the world right now. The average app user has three to four finance apps on their device. 

Add to that the statistic that around seven from ten consumers feel no loyalty toward fintech companies, and you might start to understand why these apps are particularly vulnerable to churn and losing consumers to a competitor. 

And, yet, even if session times are growing year on year, transaction frequency and customer loyalty are stagnating. 

Users are open to – and are already – engaging with fintech apps. This highlights a significant opportunity for businesses in this vertical to prioritize more compelling experiences that promote continued app usage beyond Day 0.

Adding new fintech app features that drive longer and more frequent and meaningful user interactions could be the answer to pulling users away from competitor apps. 

Let’s look at superapps as examples of how fintech app engagement might look like. These are apps built as a personalized ecosystem containing mini-apps that users engage with. Their popularity in Asia and Latin America has indicated just how transformative new fintech app features could prove to the rest of the world. 

Such features could convert sporadic fintech app users into weekly or even daily active users. It’s these users that fintech apps can turn to increase their transaction frequency. So, where might this added fintech app engagement come from?

Why Does Mobile Gaming Fill in the Missing Gaps?

If standing out in the congested fintech market isn’t on a fintech company’s agenda, it should be. 

adjoe Arcade’s premium in-app gaming solution gives fintech companies a white-label solution that is proven to increase user engagement. 

The plug-in mobile gaming solution taps into the popularity of mobile games, a sector that boasts around 2.2 billion mobile gamers worldwide. Arcade brings this unparalleled engagement straight to fintech businesses who integrate Arcade into their app. 

These are users who spend an average of 84 minutes of gameplay on their phones every day. This means fintech companies can be confident that engagement with their app will stretch far beyond the usual account management. 

With Arcade’s engaged users, fintech apps increase loyalty and drive higher transactions and app adoption.

1. Reduce Customer Churn

As Mastercard points out: “Loyalty programs are only as profitable as the ongoing engagement they drive with cardholders.”

And to increase engagement, apps must be equipped to reduce churn as far as possible.

adjoe’s partners build the world’s top-ranked mobile games, and Arcade brings these games to fintech apps to increase engagement, revenue, and CLTV.

Arcade’s nonintrusive UI also ensures brands don’t risk losing trust and connection with their consumers. The solution’s gamified elements reduce app churn rate by encouraging users to spend more time in an app and interact with its features and content. They also increase the frequency at which they engage with the app. 

And with the current cost of living crisis, Arcade is a way for fintech apps to give consumers money back and help them with their everyday savings.

2. Diversify Monetization Streams

Because of Arcade, users don’t just come to the app to transfer money or manage their monthly finances once or twice a month. 

The solution increases transaction rates because it gives users perks with payouts in real money.

They enter the app every day for games that are tailored to them. They forge stronger connections with the fintech app in question. And since Arcade’s model is designed to sustainably re-engage users over and over, businesses integrating the fintech loyalty solution enjoy a larger ROI. 

With fintech funding at risk of stagnation this year due to a drop in investment, rising interest rates, and higher regulatory restrictions, fintech apps will be actively searching for ways to compensate for this potential gap in funds. 

adjoe’s gamified loyalty solution can help fintech businesses go the extra monetary mile – apps that have integrated the solution in the past have seen an increase of at least 15 percent in eCPMs or 20 percent in ad revenue on top of their existing revenue streams.

3. Build and Maintain Brand Trust

There’s still a long way to go when it comes to consumer loyalty in the fintech space. Retention rates fell in 2023, adding further fuel to the fire when it comes to consider the necessity of fintech loyalty programs.

Incentives and rewards play a critical role in shaping and growing customer retention and loyalty within fintech – particularly within regions such as the UK and US. Reports have shown that offering loyalty rewards sways almost six in ten respondents when they choose between fintech service providers.

So, the right loyalty program can differentiate fintech brands from their competitors.

Context aside, Arcade’s customizable UI is designed to foster greater consumer trust. The premium games shown to users are filtered so:

1. publishers can control which games they don’t want customers to see
2. the games align with the users’ personal interests and give them a relevant in-app experience

Arcade: More Interactions and Greater Transactions

Even if there are 3.6 billion mobile banking users globally – and even if the fintech apps they currently use have the most compelling UI in the market – this does not mean that users are inclined to engage with the app other than to perform their typical account management activities.

And this is why so many fintech companies are struggling to grow their in-app transaction frequency or retention metrics. 

The fintech space needs to pivot away from the idea that fintech apps are purely for utility – there’s room for fintech app engagement and extra revenue beyond this primary function. 

Arcade’s premium in-app gaming feature saves users switching to another fintech company – if they do it right.