Overspending and the 'Ppyongmangchi' of 'Kkang'... "Financial Management Like a Game" [Finance Insider]

Choi Seong-gu, BankSalad Head Product Manager
"Motivation is Key... If We Challenge Together, We Will Ultimately Succeed"
"Our Goal is to be a 'Companion' from Cradle to Grave"

"Fun but practical asset growth is BankSalad's motto. If you approach it by simply setting target numbers, you'll fail like a 'three-day resolution' in studying. From buying your own home to retirement funds, let's all grow our assets while feeling fun and fulfillment together."

Geojibang, cash challenges, no-spending challenges. In the face of soaring prices, frugal saving and thrift investment, known as 'jjantech,' is gaining popularity. Various financial services and content that analyze cash flow such as income and expenses and help control spending habits are pouring out targeting these users.

Amid this trend, BankSalad is launching asset management services that combine MyData (personal credit information management) with gamification (adding game elements to non-game fields). Following the household ledger and seed money services, the 'Salad Game' released on the 24th of last month is exactly that. It is an asset management game where five team members consume within a set budget over five days and receive prize money equivalent to the amount spent.

Choi Seong-gu, Head Product Manager (PM) of BankSalad Personal Financial Management (PFM).
[Image source=BankSalad]

The Salad Game was originally planned for 3,000 people (600 teams), but as applications surged during the recruitment period, the participation target was expanded to 5,000 people (1,000 teams). The app inflow rate during the game period increased by 108% compared to the previous week. A total of 1,460 people (320 teams) succeeded in the game, saving an average of about 140,000 KRW. The user who took home the highest prize received 449,000 KRW.

The success of the game lies in the chat and the "ppyangmangchi" (hammer) feature. The chat function allows sharing weekly spending plans, and excessive spending by team members can be encouraged by sending ppyangmangchi (app push) notifications. Choi Seok-gu, BankSalad's Personal Finance Management (PFM) Head Product Manager (PM), said in an interview with Asia Economy at BankSalad headquarters in Mapo-gu, Seoul on the 25th of last month, "I felt the importance of motivation through experiencing team-based sports like CrossFit," adding, "When you set goals alone, you quickly get tired and give up, but when you challenge together, even if it's very tough, you eventually succeed."

Since then, PM Choi has listened carefully to various voices to accurately understand market needs. Analyzing ideas from company workshops, he once again realized the importance of colleagues and motivation. Through user interviews conducted three to four times a month at most, he explored various financial concerns. The service also went through verification processes such as beta testing just before the Salad Game launch.

Screen showing the remaining team budget in BankSalad's 'Salad Game' (left) and the moment of sending a hammer pop (app push) notification. [Image source=BankSalad]

Just as a yo-yo effect follows rapid dieting, there is concern whether overspending might follow after controlling consumption. PM Choi confidently said, "It may be difficult to reduce spending as much as during the game period, but users will not return to their previous spending habits before playing the game." He added, "There was a user who bragged about winning first place by spending zero won in a week. Unfortunately, that person is last place because the prize money to be returned is zero. The Salad Game does not set extreme goals like no spending. The purpose is to develop saving habits within a set budget and build confidence that thrifty consumption is possible. The most common feedback was, 'It was tough, but I managed to endure and save enough to live comfortably.'"

BankSalad plans to introduce asset growth games following asset management. He said, "To grow assets, you need to invest the money left after subtracting expenses from income, so the start is controlling spending," and added, "We are considering regularizing the Salad Game and linking it with the 'Seed Money Saving' service." He continued, "Due to various regulations when buying and selling apartments, it is difficult to quickly calculate the amount of money that should be on hand. We are planning a service that quickly presents that number." Furthermore, he said, "Ultimately, the reason for asset management is retirement," and added, "We want to become an app like a companion that grows assets together by providing a service that predicts how much retirement funds have been prepared."