The fintech sector has seen exponential growth over the past decade. While the speed and convenience of digital financial services are undeniable, an increasing number of deceptive user interface designs—known as dark patterns—have emerged that manipulate user decisions. This article provides a detailed overview of how and why fintech companies use these techniques, their impact on users, and how to protect against them.
What is a Dark Pattern?
The term “dark pattern” was coined in 2010 by UX expert Harry Brignull. It refers to design strategies that deliberately and manipulatively steer users toward decisions that may not be in their best interest. In fintech, these often appear around registration, subscriptions, fee structures, or cancellations. The goal of dark patterns is to boost conversions, reduce churn, and maximize revenue—often at the cost of transparency.
Common Dark Pattern Techniques in Fintech
Roach Motel (“Easy to enter, hard to exit”) This pattern allows for quick and easy sign-up or subscription, but makes cancellation or service termination overly complicated. Options to unsubscribe may be hidden or only available via phone, creating a frustrating experience.
Drip Pricing Users see an attractive base price initially, but by the end of the payment process, additional fees—such as service charges, express processing fees, or insurance—are added. These costs are often not clearly disclosed, leading to a much higher final price than expected.
Misdirection This technique uses visual or content-based cues to direct attention away from less profitable options. For instance, a “Cancel” button may appear in grey or smaller text, while a “Continue” or “Accept” button is prominently highlighted.
Confirmshaming Here, emotional manipulation is used to guilt users into staying. Messages like “Are you sure you want to miss out on our best deals?” or “You’ll lose exclusive benefits by opting out” create pressure to remain subscribed.
Sneak into Basket Additional services—like premium packages, newsletters, or insurance—are added automatically during the transaction process without the user’s knowledge or explicit consent.
Real-Life Examples
Dave Inc. In 2024, the FTC launched an investigation into Dave Inc. for automatically adding tips to cash advance transactions. Users often didn’t notice the extra charges, and cancellation options were hard to find.
Payment Platform Scrutiny Some digital payment platforms used misleading ads and domain names to deceive users. Hidden fees and automatic subscriptions led to unexpected charges.
Revolut and Robinhood Revolut frequently uses visual cues to prompt acceptance of notifications and promotions. Robinhood employs gamification to encourage trading, even when users don’t fully understand the risks.
Impact on Users
Dark pattern techniques can severely affect consumers. Common consequences include:
- Financial harm: paying more than expected
- Emotional stress: feeling manipulated or guilty
- Loss of trust: in the brand or fintech sector
- Reduced autonomy: users feel they have no real choice
Regulatory Responses and Consequences
Authorities are increasingly cracking down on dark patterns:
- USA: The FTC has investigated companies like Amazon and Vonage for hidden unsubscribe difficulties.
- EU: The Digital Services Act and GDPR explicitly prohibit unfair UX patterns.
- Hungary: GVH and MNB are closely monitoring the transparency of digital financial service providers.
Defense Strategies for Users
- Awareness: recognize common manipulation techniques
- Read carefully: check terms and small print
- Comparison: evaluate multiple providers before choosing
- Check reviews: Reddit, Trustpilot, Google opinions
- Legal action: report unethical practices to MNB or GVH
While dark patterns may increase short-term revenue, they erode user trust and can lead to legal repercussions. For fintech companies, building transparent, user-friendly systems is not only ethical but also a sound business strategy. Informed users protect not only themselves but also contribute to a healthier digital ecosystem.