Zerodha CEO Nithin Kamath has sparked a much-needed conversation around ethical design in financial apps by criticizing the widespread use of “dark patterns”—subtle, manipulative interface tricks designed to benefit companies at the expense of users.
In a post on X, Kamath didn’t mince words. He described how financial platforms often prioritize profit over people, using flashy design and psychological nudges to get users to take actions that may not serve their financial well-being—such as over-investing, taking unnecessary risks, or spending more time than needed on apps.
He identified some common tactics:
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Casino-style gamification to make trading feel like gambling
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Confusing notifications that mislead or stress users into action
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Omitting key details in offers or product descriptions
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Frequent pop-ups and reward-based engagement loops to keep users hooked
Kamath underscored the inherent conflict of interest in fintech: many firms are incentivized to work against their users. Referencing investor Charlie Munger, he said, “Show me the incentives, and I’ll show you the outcome.”
His message comes at a time when financial literacy is rising but many users—especially new investors—still fall prey to misleading app design. Kamath’s stance stands out in an industry often driven by volume and engagement metrics rather than trust and transparency.