The FCA has carried out an online experiment involving over 9,000 consumers, involving a trading platform app that the FCA created. It wanted to test the effect of different digital engagement practices on trading behaviour. It has found that tactics such as push notifications and prize draws can increase trading frequency and risk taking. It also found that these techniques were also more likely to have an impact on certain sub-groups, such as women, 18-34 year olds and those with low financial literacy.
The FCA noted that it had already warned stock trading apps to review “game-like” features as part of its pre-Consumer Duty communications.