This article was originally published on The Conversation in March 2021, ahead of Robinhoods initial public offering.
Similarly, Robinhoodsslick and easy-to-use appresembles athrill-inducing video gamerather than a sober investment tool.
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I study how people behave inside game worldsanddesign classroom games.
But theres a dark side too, and so-calledgamificationcan lead people to forget the real-world consequences of their decisions.
Players who barely remember yesterdays breakfast recall visceral details fromgames played decades ago.
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The psychological impact of game play can also be harnessed for profit.
This free-to-play model is so profitable that itsgrown increasingly popularwith video game designers and publishers.
Similarly, subscription-based massively multiplayer online roleplaying games such asFinal Fantasy XIVuse core game play loops.
Gamification, however, goes one step further and uses gaming elements to influence real-world behavior.
Extrinsic motivation lasts only as long as the player feels appropriately challenged and rewarded.
Games exploit this by tapping into thepleasure of earning rewards.
Robinhoods simple interface is replete withemojis, push notifications, digital confetti and backslapping affirmation emails.
Its game play loop is making stock trading easy while providing sensory feedback.
I opened an account to see for myself.
This gives a casino-like illusion of choice, with thecolor goldlending an air of sophistication.
Other sensory appeals such as colors and gamified imagery such as gift boxes encourage continued use.
Robinhood app
By delighting users, Robinhood creates players rather than investors.
Robinhood isnt the only financial app that uses some of these gamelike effects.
But unlike Robinhood, apps likeAcornsand theLong Gameencourage users to save money rather than spend it.
As Robinhood prepares to go public, it could use the opportunity to rethink how it interacts with users.
Rather than celebrating a trade, for example, it could reward them for taking an investment education program.
