Redesigning Gamification for
Meaningful User Engagement

A Case Study at Finku

Organization

Finku

Project Type

Graduate Thesis

Timeline

August 2022 — June 2023

My Role

Sole researcher and designer, collaborating with professors and professionals for validation

Overview

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About Finku

Google and Temasek (2016) project that Southeast Asia is poised to become the fastest-growing fintech region worldwide. Despite the immense potential of fintech to contribute to economic growth in Indonesia (Alhassan et al., 2020; Beck et al., 2007, 2008; Bruhn & Love, 2014; Darmansyah et al., 2020; Z. Wang et al., 2019), there remains a considerable challenge concerning the financial literacy levels among Indonesians, which in 2009 stood at a relatively low rate of 38.03 percent, ranking in the 30th percentile globally (Google & Temasek/Bain, 2019; Kirana & Havidz, 2020).

Finku is the top Indonesian personal financial management (PFM) app market player. It boasts the most extensive user base, highest user engagement, and substantial user time on the platform. Finku simplifies financial management by seamlessly connecting with users' financial accounts, facilitating budget creation, and providing access to financial reports. Users can effortlessly track their earnings and expenses and plan their spending, savings, and investments.

Problem

The gamification elements incorporated in the Finku app consisted of point systems, streaks, random rewards, and financial incentives. It was found that most gamification users tend to only engage with these gamification features due to the presence of financial incentives.

Flynn et al. (2021) suggest that financial rewards can initially boost app usage, but their effectiveness may decline. Moreover, relying too heavily on financial incentives can lead to excessive use, where users focus solely on obtaining rewards and lose sight of the app's primary purpose (Chen et al., 2012; de Bellis & Venkataramani Johar, 2020; Flynn et al., 2021).

Solution

Exploring alternative gamification features that keep users engaged with the app over the long term is essential to tackle this challenge. The developed gamification features encompass:

A Weekly Check-In feature, promoting consistent financial management weekly and rewarding users with streaks

A gamified questionnaire feature named 'Buy or Bye' to assist users in their pre-purchase decision-making process

A Friends feature, fostering motivation and interaction among users within the app

A currency system named 'Finkoins,' rewarding users based on their savings achievements while using the app

A Levels feature that corresponds to users' accumulation of Finkoins

Challenges designed to incentivize users to use the app's features, with badges as a reward

Leaderboards that enable users to compete based on their level or challenge progress

User benefits

Hamari and Koivisto (2015) and Johnson et al. (2016) highlight that gamification can enhance user experience, boost participation, and drive user adoption. In financial management, gamification aims to make managing finances enjoyable while enhancing financial literacy. It can also improve financial well-being and incentivize users to adopt positive financial behaviors like saving.

This design research seeks to address current user issues, improve the app's gamification, and enhance the overall user experience within the Finku app.

Business benefits

Over-reliance on financial incentives might not be a sustainable strategy for the business in the long run.

The enhancement of gamification elements of the app should promote meaningful and sustained user interactions while moving beyond a heavy dependence on financial incentives and maintaining Finku's position as the personal financial management (PFM) app market leader in Indonesia.

The process

This study employs the design science research methodology (DSRM) which encompasses three iterations to understand how gamification impacts personal financial management and improve the Finku app accordingly.

1.

First, we built and assessed a behavioral model to understand what factors drive users' intentions when using the app.

2.

2.

2.

Second, we pinpointed meta-requirements and design principles to implement in the app and enhance users' financial behavior and overall app experience.

3.

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3.

Lastly, we created a prototype of the Finku app that incorporates previously established meta-requirements and design principles.

Design science research approach.

Research

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The initial iteration of this study focused on investigating how gamification and users' psychological constructs influence their intention to use the Finku app for financial management.

A behavioral model was developed and assessed during this phase, laying the groundwork for subsequent iterations. The behavioral model combined the Theory of Planned Behavior (TPB) with the Technology Acceptance Model (TAM) with extensions into gamification and financial knowledge to understand users' intentions in using the Finku app.

Designed and evaluated behavioral model.

We designed, validated, and distributed a questionnaire to test our hypotheses. Along with the 44 items to measure the constructs in our behavioral model, the questionnaire featured an open-ended question inviting respondents to share any challenges they faced in managing their finances and using the Finku app.

The proposed behavioral model was evaluated by applying partial least squares structural equation modeling (PLS-SEM), a recognized and effective approach for exploratory studies (Hair et al., 2019).

With 404 valid responses, results showed three hypotheses did not receive support: H2b (Financial knowledge → Perceived financial control), H5b (Financial attitude → Behavioral intention), and H6b (Perceived financial control → Behavioral intention. Accepted hypotheses imply that users' intention to use the app was influenced by several factors, including gamification, how easy and useful they found the app, their overall attitude, and their perceived control over it.

Hypotheses test results.

Results of the Importance-Performance Matrix Analysis (IPMA) highlight the significant importance of constructs like the attitude toward the app, gamification, and perceived usefulness in shaping behavioral intentions. Subsequent design iterations focused on improving the app by enhancing these specific areas.

IPMA priority map for behavioral intention toward the Finku app.

Recommendations from prior research related to the accepted hypotheses are detailed in the table as follows.

Recommendations for the Finku app based on the evaluated behavioral model.

Gamification plays a significant role in influencing users' intention to use the Finku app. Additionally, users' attitude toward the app is another important factor contributing to their intention to use it.

Ideation

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We further collected data from the App Store, Play Store, and questionnaire to understand users' common challenges in financial management and app usage. We employed a thematic analysis to sort and categorize these issues into distinct themes based on the data collected.

Subsequently, we conducted a two-round Delphi survey to present and evaluate the coded issues, establishing meta-requirements and design principles for the Finku app. This Delphi survey, aligned with findings from the previous research iteration, led to 20 issues, which we consolidated into eight meta-requirements (MRs) and four design principles (DPs) to be implemented in the app. These issues encompassed financial behavior (10 issues) and app-related problems (10 issues) experienced by users.

Derived financial behavior issues, meta-requirements, and design principles.

Derived app issues, meta-requirements, and design principles.

A set of meta-requirements (MR1-MR8) and design principles (DP1-DP4) was established aimed at addressing specific user concerns related to their financial behavior (I1-I10) and their overall experience while using the Finku app (I11-I20).

Design

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We benchmarked gamification elements in global PFM apps using the Octalysis gamification framework. While it appears that the Finku app has incorporated most of the core drivers outlined in the Octalysis framework compared to other apps, there is still room for implementing new gamification elements and introduce new core drivers to enhance the app's gamification strategy.

Gamification implementation of global PFM apps based on the Octalysis framework.

Gamification elements of global PFM apps.

We also benchmarked habit-building apps that utilize gamification, including Duolingo, Aaptiv, Brilliant, and Fabulous. We formulated functional requirements into epics and user stories by taking insights from these benchmarks and combining them with previously established meta-requirements.

Implementation of the prototype based on the Octalysis framework.

Seven scenarios were developed in the Finku app prototype guided by the defined meta-requirements and core drivers of the Octalysis gamification framework.

Weekly Check-In feature.

Weekly Check-In feature.

Complete Weekly Check-In missions to control your finances and keep your streak alive

This feature improvement aimed to reduce user difficulty with the current Daily Check-In feature (addressing I14), maintain consistent user engagement (I12), and educate users about financial management within the app (addressing I1 and I11). Specifically, the Weekly Check-In missions involved budget setting, financial record-keeping, and financial report-related tasks, addressing various user challenges in financial management (I7, I8, I9, and I10).

This feature also included Streaks, implementing CD8 of the Octalysis framework, which promotes financial discipline among users (addressing I6).

As a result, this feature tackles multiple meta-requirements (MR1, MR3, MR5, and MR6), including educating users about financial management, facilitating disciplined financial management, and providing a user-friendly and useful experience.

Get Judge Fin-E's verdict on whether to "Buy or Bye" that purchase

A new feature called Buy or Bye aimed to help users during their pre-purchase decision-making. In this feature, users answer questions, and their responses guide them in deciding whether to purchase or reconsider.

The main goal of this feature is to assist users in better managing their spending (MR2), specifically addressing concerns related to impulsive spending and a lack of financial control (I3, I4, and I5). Additionally, this feature incorporates a storytelling approach, implementing CD1 of the Octalysis framework.

Buy or Bye feature.

Friends feature.

Friends feature.

Connect with your closest to keep each other fired up about financial management

This feature allows users to manage their profiles and connect with other users within the app, implementing core drivers from the Octalysis framework (CD4 and CD5). This feature aims to motivate users to build better financial discipline by engaging with friends within the app, addressing issues related to financial management (I6), and fulfilling the predefined meta-requirement (MR3).

Earn Finkoins as a reward when you successfully save by the end of the month

A new currency system, Finkoin, was designed to reward users based on how much they saved while using the app, calculated based on their monthly savings. This system replaces the existing financial incentives in the app. This feature implements core drivers from the Octalysis framework (CD2 and CD5), all while addressing a reported issue (I13) and fulfilling a predefined meta-requirement (MR3).

Finkoin currency system.

Levels feature.

Levels feature.

Advance your level by collecting Finkoins

As users accumulate Finkoins, their progress aligns with their current level within the app. This feature implements core drivers from the Octalysis framework (CD2 and CD5), all while addressing a reported issue (I13) and fulfilling a predefined meta-requirement (MR3).

Complete challenges and earn badges the more you use Finku

This feature offers users various tasks they can complete within the app, addressing a reported issue (I13). This feature implements core drivers from the Octalysis framework (CD2 and CD5), all while addressing a reported issue (I13) and fulfilling a predefined meta-requirement (MR3).

Challenges and Badges feature.

Leaderboard feature.

Leaderboard feature.

Compete with your closest in the savings game

Lastly, a Leaderboard feature was created to display users’ rankings compared to other users based on their progress in achieving levels or completing challenges. This feature implements core drivers from the Octalysis framework (CD2 and CD5), all while addressing a reported issue (I13) and fulfilling a predefined meta-requirement (MR3).

Results

Part 4:
Results

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We conducted usability testing and interviews with Finku users, asking them to perform tasks using the prototype and provide feedback. Using the System Usability Scale (SUS), the prototype obtained a score of 78.875, falling into the "A-category" based on the rating scale, indicating good and acceptable usability. Participants who took part in the usability testing had positive feedback about the new Finku app prototype, noting its ease of use and its help in establishing better financial management habits.

"I find the interface user-friendly and comfortable to use. What’s great is that these features offer many improvements to help me manage my finances."

— Participant 5

"Compared to the current gamification in the Finku app, these features are a significant update, especially for users looking to establish good financial management habits for the first time."

— Participant 2

"This [gamification update] is an excellent intervention for financial management. It’s user-friendly and can encourage users to be more disciplined in managing their finances."

— Participant 4

While the gamification feature is acknowledged as a valuable tool for fostering disciplined financial habits, it's primarily viewed as an extra, nice-to-have aspect of the app. Users' core requirements from the Finku application revolve around its fundamental functions, which include transaction recording, budgeting, and financial reporting.

"I'll keep using Finku whether or not gamification exists because I need to. I'm already good at managing finances, so I don't rely on these features."

— Participant 2

"I don't mind if others share their Finku achievements on social media. For me, it’s alright if there’s a gamification feature in the app, and if there isn’t. My main focus with Finku is transaction recording."

— Participant 4

"The only downside is that the gamification features might not fit everyone. For instance, older users might want to use this transaction-recording app but not be too keen on extra features. These features could be a barrier for some users."

— Participant 5

Reflection

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The design science research methodology is a robust scientific approach that applies theory to design real-life solutions

As my graduate thesis, this study was an interesting experience applying scientific methodologies to UX design. The design science research approach integrated behavioral science to inform the design process. The study leveraged key theories from information systems and psychology to understand how gamification and users' psychological factors could impact their intention to manage finances using Finku. Applying these theories alongside other scientific methods guided the development of the final prototype, resolving prevalent user issues.

It was interesting to revisit the subject of my undergraduate thesis and delve deeper into the domain of gamification. Again, it was very interesting to analyze user behaviors and produce a design to address identified behaviors. This experience further solidified my interest in design research, a field I plan to explore more extensively when I pursue a doctoral degree.

Gamification can enhance engagement, but the primary driver of engagement is the usefulness of core features

While the gamification feature is recognized as a valuable tool for promoting disciplined financial habits, it’s primarily viewed as an extra, nice-to-have aspect of the app. Users primarily prioritize the core functions of the Finku application, which encompass transaction recording, budgeting, and financial reporting. Therefore, while the gamification feature is appreciated, main focus should be on enhancing these fundamental features first.

The Octalysis framework can serve as a valuable guide for gamification design

Gamification elements are useful tools for influencing user behavior. The Octalysis framework, a gamification model, highlights eight core drivers that motivate people to participate in various activities. In this study, the Octalysis framework was a valuable guide in developing the prototype. Users found the gamification features incorporated in the prototype effective in establishing better financial management habits.

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All

Finku (2023)

Finku (2022)

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