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Nithin Kamath slams ‘Dark Patterns’ in finance apps, says industry incentives often work against users
“Incentives are often skewed toward doing what’s good for the business and not for the customer. It’s very hard to consistently put customers first.”
Many platforms are, in some ways, incentivised to work against their own users,” he said
Zerodha CEO and co-founder Nithin Kamath has issued a sharp rebuke to the widespread use of "dark patterns" in financial services apps, warning that these manipulative design tactics are often a direct result of skewed industry incentives that prioritize business metrics over user welfare.
In a post on X, Kamath highlighted a fundamental conflict plaguing the financial services space, “Incentives are often skewed toward doing what’s good for the business and not for the customer. It’s very hard to consistently put customers first.” He pointed out that this misalignment is why finance apps are often riddled with deceptive interface tricks, more than almost any other category.
One of the biggest challenges in building a financial services business is that the incentives are often skewed toward doing what’s good for the business and not for the customer. It’s very hard to consistently put customers first.
— Nithin Kamath (@Nithin0dha) July 9, 2025
This is one of the main reasons why finance… pic.twitter.com/AZR1hiiIfb
Kamath defined dark patterns as design choices that subtly or overtly nudge users into actions against their best interests, whether through gamified interfaces mimicking casinos, pushy notifications, hidden charges, or non-transparent defaults. “Many platforms are, in some ways, incentivised to work against their own users,” he said, citing legendary investor Charlie Munger’s quote, “Show me the incentives, and I’ll show you the outcome.”
He drew a sharp contrast between this industry trend and Zerodha’s philosophy, claiming that the platform has consciously steered clear of such practices since its inception. “Doing what’s right for our customers has always been at the heart of our philosophy,” Kamath said. He credited Zerodha’s user trust to this long-standing approach of ethical and transparent design.
A 2024 study by the Advertising Standards Council of India (ASCI) found that 52 of India’s 53 most-downloaded apps deploy at least one form of deceptive design, from pre-checked consent boxes and fake countdown timers to forced user actions and drip pricing.
Sectors most affected by dark patterns include edtech, online travel and ticketing, fintech, e-commerce, streaming and ride-hailing.
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