Investment gamification

Using stock market downturns as a learning opportunity

Using stock market downturns as a learning opportunity
Tiancheng Chang
November 15, 2022

Fantasy Funds delivers risk-free gamified test bed for managing investments in tough times

As global economies face down a likely recession, it’s not all bad news. Recessions can in fact offer excellent investment opportunities for those not afraid of a little risk. In economic downturns, investors hedge their risk with certain investment strategies, and overall, recession investments may shield investors from larger bull-market losses. A bear market doesn’t have to be unbearable, and the “investment-curious” do not need to be discouraged about risking too much in a volatile market.

Instead, financial institutions and financial news outlets can use an economic downturn to their advantage. Economic uncertainty can be an opportunity for providing guidance and education in financial literacy and for engaging users with valuable financial information, news and analysis. This not only helps would-be investors navigate the choppy waters of market investments but also boosts financial news outlets’ traffic numbers, converts subscribers and registers new users, and enables new monetization strategies.

Fight the fear of investing

Nearly half of Americans stay out of the stock market, and at least a quarter of Americans say they are intimidated by the potential losses they’d face if they did invest. Nerves, lack of knowledge and lack of confidence are creating anxiety for Americans about investing even in the best of times – meaning that they may be even less likely to test their investing skills during more uncertain times . The hesitation to invest is even more pronounced for young people (aged 35 and younger). Add in the uncertainty inherent in the stock market, and you’ve got a lot of potential investors sitting on the sidelines.

When the stock market goes down, however, financial institutions and financial media are in an ideal position to reach more people and teach them how to manage investments, or how to start investing. First, through education on financial literacy and second through gamification. And ideally through a combination of both. By gamifying investment, potential investors gain access to a financial game where they can test out their investment theories and make errors risk-free without paying a real-world price.

Play the financial game: Making investment fun with Fantasy Funds

“De-risking” investment and making the learning process fun challenges the intimidation factor cited by many prospective investors as their reason for steering clear.

The experience of financial firms that have used Fantasy Funds – a live stock market and portfolio management game to engage users and turn them into players – shows not only that there is a real appetite for financial literacy and advice, gamified portfolio management is a surefire strategy for both user conversions and a lucrative opportunity for monetization.

Most of all, when surveyed, 70% of players reported increased confidence and willingness to invest in the financial market after having played Fantasy Funds.

For example, Sweden’s Dagens industri ran a Fantasy Funds game that led to more than 17,000 registered players within Sweden, and achieved their goal of creating a stickier site to retain players as eventual subscribers. In surveying players after the game ended, they discovered that more than half participated in the game to test their strategies and learn risk-free.

Stay relevant with financial advice, analysis and insights

Financial insight is always welcome, but particularly so in times of economic turmoil. These are the times when newspapers’ advice, analysis and insights on how to invest and save become most relevant and valuable. Content that is pulled into a Fantasy Funds game is even more valuable during challenging times than during bull markets when stock market values keep climbing. Providing context and analysis about financial news and interpretation of financial data for individual investors and new investors fosters trust, informs users and helps players build their own investment strategy, thus driving conversions.

Get your game on!

Just as financial news and risk-free gamification ensure that users/players don’t have to invest on their own, financial companies that want to help users not only invest with confidence but open investment accounts, subscribe to their publications, and so on, are not alone in attracting and retaining these users.

If you’re interested in running your own Fantasy Funds game, don’t waste another minute.

 

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