Beware of fintech

Thus, in video games, the goal is to make the player addicted by forcing him to invest hours in the development of his character’s abilities so that he can finally succeed in his main quest.

Such schemes would also be found in finance. A study by Princeton University, which looked at online shopping sites, found more than 1,800 cases of fake interfaces of 15 different types.

This would thus make it possible to hide in financial products:

  • exorbitant interest,
  • onerous buyout clauses
  • or hidden charges.

Among the cases observed, the study noted in particular erroneous instructions, unclear prices, false information or deliberate obfuscation of the latter and hidden costs.

Today, any consumer with a bank account can create their investment portfolio. While this popularization is a good thing, it also means that it is easy to get caught up in these schemes and lose money.

“In fintech, rigged interfaces can make risky or complex investments look like a game,” warns Sarah Newcomb in her article. These interfaces are developed by behavioral economists to encourage consumers to spend time on these applications.

Users must therefore exercise caution and as an advisor it is your role to invite them to do their research before embarking too quickly on an investment that they may later regret. Encourage your clients to read more and develop their financial literacy to avoid falling into the most obvious pitfalls.

One day, artificial intelligence will certainly be able to help spot these dubious terms of use, but in the meantime, keep an eye out for investors.

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