Recent studies have shown that younger generations, like Millennials and Gen Z, are more hesitant to use credit cards, and when they do, what they are looking for in a credit card product is quite different. VITAL Card CEO and co-founder Chris Bridges has worked with his team to develop a new credit card that offers benefits that uniquely fit the needs of younger generations of subscribers.
Gamification is a process by which elements of games, such as competition or leaderboards, are applied to everyday life. In fact, gamification has become such a standard part of our daily lives that we may not even notice how it has taken root. Fitness trackers, screentime monitors, and even meditation apps show how nearly every part of our lives has become gamified.
Aspects of gamification have long been known as an excellent way to create engagement. For example, contests are used in workplaces as a way to encourage friendly competition and inspire employees to do their best work. The team at VITAL Card applied a similar idea to teaching younger generations financial literacy, rewarding them through a gamified system for their positive financial habits.
How VITAL Card uses gamification to teach financial literacy
VITAL Card leverages gamification in two primary ways: encouraging responsible spending and growing the VITAL community. While using VITAL Card, users will receive notifications that will give them advice on improving their spending and credit score throughout the month. The app does so by linking their bank accounts and other cards and analyzing their spending habits and the potential effects on their credit scores.
Many younger users are likely unaware of how much spending habits affect their credit. “Revolving utilization, or the percentage of a total credit line being used at any given point, is not only one of the primary factors that credit agencies use to determine an individual’s credit score — it can be one of the most important,” explains Bridges. “Without proper financial literacy, younger generations can fall into the trap of thinking that as long as they pay their credit cards on time, their credit score will be good. They don’t realize how much more there is to credit than that.”
Indeed, most people in America don’t understand how their credit score works, much less younger generations who are more hesitant to use it to begin with. The broader education system in America doesn’t offer a curriculum that teaches financial literacy. As a result, many children don’t have the luxury of learning at home because many families see talking about money as taboo. “Although notifications about overspending and budgeting may seem like a simple step, it can help young individuals in profound ways,” Bridges says.
The benefits of being a VITAL Card member
In addition to the aspects of VITAL Card tied to financial literacy, users also get 1.5% cash back on all purchases, with potential cashback going as high as 3%. For many younger individuals, a good cashback system is a great way to attract them to use a credit card. With the increasing reliance that young people have on the “gig economy,” many are pinching pennies and trying to find extra sources of income wherever they can. Earning cash back on purchases they would make anyway is an excellent opportunity for them to put more money in their wallets without having to do any extra work.
Bridges and his team were also interested in making VITAL Card membership into a social experience, hence their “referral game” program. VITAL Card users can earn rewards for referring new members to the program with a points-based system by which users with more points are given a larger share of the pot. Users earn points for not only the people they refer but also secondary and tertiary referrals, encouraging them to share the benefits of becoming a VITAL Card member with their friends.
Furthermore, VITAL Card is inherently social thanks to its feeling of exclusivity. “Upscale credit cards have long been a symbol of status, so the look of a physical credit card can be just as important as the services it offers,” explains Bridges. “VITAL Card is designed to offer a sleek and elegant metal card that users will be proud to wield and present for payment while they are out and about. Users can learn financial literacy and look good while doing it, too.”
Bridges and the team at VITAL Card have an understanding of Millennials and Gen Z that the financial sector has largely struggled to capture in the past. Products like VITAL Card will ensure that the financial industry continues to thrive and that young people will know how to handle money responsibly, allowing them to have a financially healthy future. “The financial industry was falling behind,” Bridges asserts. “Products like ours will allow it to catch up.”
