Nithin Kamath asks: How much can you really trust your favorite finance app?
Kamath shared a post that warned of the “casinofication” of investing, where apps mimic gambling platforms to drive activity. “More activity = more revenue is the strategy of the entire industry,” the post read.
- Jul 9, 2025,
- Updated Jul 9, 2025 5:55 PM IST
Zerodha co-founder Nithin Kamath is sounding the alarm on Indian finance apps, warning that they’re flooded with manipulative “dark patterns” that quietly nudge users into risky, costly decisions.
In a detailed post on X, Kamath pointed to a systemic issue in fintech: “It’s very hard to consistently put customers first,” he wrote. “Finance apps are full of dark patterns, more than almost any other category.”
These dark patterns—deceptive design tricks—range from hidden exit buttons and forced consent to loan offers embedded alongside trading. A 2024 study by Asci Academy and design firm Parallel HQ found that 52 of India’s 53 top finance apps used at least one such tactic, with many showing five or more.
Kamath shared a post that warned of the “casinofication” of investing, where apps mimic gambling platforms to drive activity. “More activity = more revenue is the strategy of the entire industry,” the post read.
Gamification tools like badges, leaderboards, and nudging alerts turn investing into a game, encouraging overtrading—often at users’ expense. “If anything, ‘disengagement’ is the best thing for investors.”
The post flagged how apps present subtle “tips” and alerts—like “RELIANCE up 5%”—that appear neutral but are designed to provoke trading. Other concerns include burying true costs until checkout, making account closures difficult, and hiding essential information about fees, risks, or returns.
It also highlighted growing privacy intrusions, with apps demanding broad permissions and tracking user activity. “The term ‘tracking’ doesn’t quite generate the same emotional response as ‘stalking,’” he noted.
Kamath emphasized that while the pressure to drive revenue is real, platforms must choose long-term trust over short-term gains. “Doing what’s right for our customers has always been at the heart of our philosophy,” Kamath wrote.
Zerodha co-founder Nithin Kamath is sounding the alarm on Indian finance apps, warning that they’re flooded with manipulative “dark patterns” that quietly nudge users into risky, costly decisions.
In a detailed post on X, Kamath pointed to a systemic issue in fintech: “It’s very hard to consistently put customers first,” he wrote. “Finance apps are full of dark patterns, more than almost any other category.”
These dark patterns—deceptive design tricks—range from hidden exit buttons and forced consent to loan offers embedded alongside trading. A 2024 study by Asci Academy and design firm Parallel HQ found that 52 of India’s 53 top finance apps used at least one such tactic, with many showing five or more.
Kamath shared a post that warned of the “casinofication” of investing, where apps mimic gambling platforms to drive activity. “More activity = more revenue is the strategy of the entire industry,” the post read.
Gamification tools like badges, leaderboards, and nudging alerts turn investing into a game, encouraging overtrading—often at users’ expense. “If anything, ‘disengagement’ is the best thing for investors.”
The post flagged how apps present subtle “tips” and alerts—like “RELIANCE up 5%”—that appear neutral but are designed to provoke trading. Other concerns include burying true costs until checkout, making account closures difficult, and hiding essential information about fees, risks, or returns.
It also highlighted growing privacy intrusions, with apps demanding broad permissions and tracking user activity. “The term ‘tracking’ doesn’t quite generate the same emotional response as ‘stalking,’” he noted.
Kamath emphasized that while the pressure to drive revenue is real, platforms must choose long-term trust over short-term gains. “Doing what’s right for our customers has always been at the heart of our philosophy,” Kamath wrote.