Problems in Fintech Design

Speculative Trading Apps Gamifying Risk

Gamified interfaces encourage excessive trading and leverage among inexperienced investors.

speculative-trading-apps-gamifying-risk

Strict KYC and Documentation Barriers

Formal ID, address proofs, and documentation requirements exclude informal workers and marginalized groups.

strict-kyc-documentation-barriers

Tax Complexity That Discourages Small Investors

Complex or unclear tax treatment of gains and dividends deters participation and encourages informality.

tax-complexity-discourages-small-investors

Unbanked and Underbanked Households

Large segments of low-income and marginalized populations lack access to basic transaction accounts.

unbanked-underbanked-households

Unclear Allocation of Platform vs Lender Responsibility

In platform models, responsibility for disclosures, KYC, and collections is unclear between marketplace and lender.

unclear-platform-lender-responsibility

Unclear Custody and Safekeeping Arrangements

Investors may not understand whether assets are segregated, leading to loss risk on platform failure.

unclear-custody-safekeeping-arrangements

Unclear Data Protection and Use of Health/Behavioral Data

Insurers use health, location, and behavioral data without clear consent or safeguards.

unclear-data-protection-insurance

Unclear Governance of Emerging Instant and QR Schemes

New national schemes may lack transparent governance, open access, and dispute mechanisms.

unclear-governance-instant-qr-schemes

Unclear Liability in Platform and Marketplace Payments

Responsibility between marketplaces, PSPs, and banks is unclear when disputes or fraud occur.

unclear-liability-platform-payments

Unclear or Misleading ESG and Impact Claims

Greenwashing and vague impact claims mislead investors about social and environmental outcomes.

unclear-misleading-esg-impact-claims

Unclear Regulation of Insurtech and Platform Models

Ambiguity about the roles and duties of platforms, MGAs, and TPAs creates consumer and prudential risk.

unclear-regulation-insurtech-platforms

Underdeveloped Capital Markets in Many Jurisdictions

Shallow markets limit product diversity, liquidity, and investor protection for households.

underdeveloped-capital-markets

Underrepresentation of Local Context in Investment Education

Most educational content is imported and misaligned with local products, regulation, and risks.

underrepresentation-local-context-investment-education

Unfriendly UX for Low-End Devices and Networks

Bank apps assume high-end smartphones and strong data, making access hard for poorer users.

unfriendly-ux-low-end-devices

Unintuitive or Unsafe UX for Payment Apps

Poorly designed interfaces lead to errors, mis-sends, and exploitation of vulnerable users.

unintuitive-unsafe-ux-payment-apps

Unreliable Agents and Cash-Out Points

Users cannot rely on agents for liquidity due to irregular hours, liquidity shortages, or fraud risk.

unreliable-agents-cash-out

Unreliable or Exploitative Funeral and Burial Societies

Informal funeral schemes may be poorly governed, underfunded, or fraudulent.

unreliable-exploitative-funeral-schemes

Unsustainable Rate Caps Without Viable Models

Poorly calibrated rate caps make sustainable small-dollar lending unviable, reducing access or driving activity underground.

unsustainable-rate-caps

Use of Confessions of Judgment or Draconian Clauses

Contracts include clauses that waive due process or enable rapid judgment against borrowers.

use-confessions-of-judgment

Use of Confusing Legal Language in Contracts

Contracts are drafted in complex legal language inaccessible to low-literacy borrowers.

confusing-legal-language-contracts

Use of Dark Patterns in Digital Banking UX

Interfaces obscure choices, hide fees, or nudge users toward high-revenue options.

dark-patterns-digital-banking-ux

Use of Dark Patterns in Digital Insurance Sales

Online journeys nudge users into add-ons or auto-renewals without clear consent.

dark-patterns-digital-insurance-sales

Use of Dark Patterns to Steer Payment Choices

Interfaces nudge users toward higher-cost or riskier payment options without clear consent.

dark-patterns-payment-choices

Use of Intimidation or Social Shaming in Collections

Some lenders use public shaming, social media exposure, or contact of friends/family to coerce repayment.

use-intimidation-social-shaming