Dark patterns in financial technology

Dark patterns are deceptive and manipulative design techniques used to influence users to take actions that may not be in their best interests.

Dark patterns are user interface elements on websites and apps designed to manipulate, influence or mislead people into making certain decisions that, no surprise, benefit corporations and not individual users. Companies often use dark patterns to trick customers into spending more money than intended or sharing personal data that can be sold to marketers.

These techniques are often used in the field of financial technology, or Fintech, where companies may be more focused on generating profits than on serving their customers. Dark patterns can take also the form of exorbitant interest, expensive surrender clauses or hidden fees.

Gamification of Dark Patterns

One Princeton University study analyzed online shopping sites and found more than 1,800 instances of dark patterns, representing 15 different types. Obvious offenders are payday loans and predatory rent-to-own schemes, but there are many other forms dark patterns can take. Misdirection, obscured pricing, misinformation or intentional obfuscation, and hidden costs are all common dark patterns.

In financial technology, dark patterns can make very risky, complex investments seem like a game. Financial technology firms are competing for market share through increasingly engaging design and gamification. These user interfaces are often carefully designed to make them as easy and fun to use as possible. That might sound like a positive development, but consumers need to be on the lookout for the more nefarious elements of product design.

How to identify Dark Patterns

Once you start looking for dark patterns, you’ll be surprised how often you spot them, even on websites you frequent. They are carefully designed to take advantage of human behavior and web usability standards. Companies know that most users skim quickly and may misinterpret a subtle but intentional graphic or text element, like a button.

Main and common tactics

Trick questions or confusing language: Driving you toward or away from giving an answer or making a choice you didn’t intend (“Please check this box if you don’t want to receive updates and offers”);

Countdown timer:

Creating false urgency around a deal or discount that will expire “in a limited time,” even when the offer is valid for longer;

Sneaky costs or products:

Adding products to your shopping cart without your consent or revealing unexpected charges in the last step of the checkout process;

Scarcity messages:

Stating that a product is in low stock or high demand to increase its appeal;

Forced continuity:

Charging your credit card without warning after a free trial of a service has finished, and making it difficult to cancel the recurring subscription;

Confirmshaming:

Using language to shame you into taking an action or discourage you from opting out (a popup that says, “No, I don’t want 20% off” or “No, thanks, I already know everything about cooking”); and

Asymmetric presentation:

Prominently highlighting one option, such as agreeing to share personal data, while making alternative options hard to find.

Why should companies avoid this?

Once users encounter Dark Patterns, they will ask themselves, “Why should I trust a company that wants to trick me? Why should I stay subscribed if they need to resort to these tactics?” So your brand suffers. A good agency or a designer (good as in ethical) should turn down any of these ideas. Because companies often do not consider how much this hurts their customer base.

It is important for consumers to be aware of these dark patterns and to take steps to protect themselves from being manipulated or exploited by fintech companies. This may include reading terms and conditions carefully, being wary of pre-checked boxes and hidden fees, and taking the time to shop around and compare different options before making a decision. By being vigilant and aware, consumers can make informed choices and avoid falling victim to these manipulative tactics.

What other kind of dark patterns we should consider? Share it in the comments.

À bientôt amigos!