The UK’s financial watchdog has called on trading apps to reconsider game-like design features, which the regulator says pushes consumers to invest in products they wouldn’t usually.

The Financial Conduct Authority (FCA) warned that while gamification can engage consumers, it is being used in ways that can mislead consumers and drive problem behaviours.

Research published by the organisation found that people using apps with frequent notifications, in-app points, badges and celebratory messages for making trades, are exposed to high-risk investments, with some exhibiting behaviours similar to problem-gambling.

Consumers using these kind of apps are also more likely to invest in products "beyond their risk appetite", said the authority.

The recent study revealed that nine per cent of adults with investments have borrowed to invest, with nearly half saying they would not have been able to make the investment without a loan or credit.

“Some product design features could be contributing to problematic, even gambling-like, investor behaviour,” said Sarah Pritchard, executive director of markets, FCA. “We expect all firms that offer stock trading to consumers to review and, where appropriate, make improvements to their products based on these findings."

The concerns raised by the FCA come as the financial industry anticipates the upcoming Consumer Duty, which comes into force next year.

The regulator said that all firms should be reviewing their products now to ensure they are fit for purpose.

The Duty stipulates that firms must design services so that consumers can make "effective, timely and properly informed decisions about financial products and services".

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