Dark Finance: Exploring Deceptive Design in Investment Apps

Abstract

This study aimed to explore how financial technology companies employed dark patterns to influence investors’ financial decision-making and behavior. We examined 26 mobile apps that are available in Norway and allow users to purchase stocks, funds, and cryptocurrencies. Our goal was to identify any design strategies that may be deemed unethical. We detected several methods or deceptive tactics deliberately devise to evade the purpose of GDPR. Nearly all the studied apps incorporate dark patterns to varying degrees, and the manipulation level using these practices differs between bank and non-bank apps. Banks have more transparent apps with fewer dark patterns. They give more importance to safeguarding users’ personal information than non-bank fintech companies and are less likely to exploit the data shared by users. Non-bank apps display more intrusive data policies and subpar default settings than banks. They utilize deceptive practices to conceal pricing, encourage user interaction, and dissuade users from exiting the platform.