Many users complained that they didn't like paying so much for this feature because it didn't really seem to be doing very much. Instead of trying to educate each individual customer about all the intricacies of the report they just added a dialog box that would display for ~10 seconds and step through a few fake progress messages. People stopped complaining about paying for the report, and I would assume that is because the progress messages made them feel like something complicated was happening.
While the results were 99.99% the same as from the slower solution, customers would think "it can't be right" or other things like that, and wouldn't trust the product.
We'd just give the result a day later. Fighting with customers expectations is sometimes very hard.
I ran into this while doing phone and ticket support back in the day and tried to get my coworkers to join me in an experiment but they refused. We could have learned so much. I wrote about it: http://rachelbythebay.com/w/2012/07/14/difficulty/
There are many other words and phrases available for us to talk about this concept that are well understood and do not need to be redefined.
My guess: it's hard to consider adults are less curious than children, but more confident than children. In biology: maturity = stop of growth
I'm not sure if there is a better solution that doesn't misrepresent what's actually happening. Users sometimes have heuristics about the way that systems work which might be inaccurate. In this case, the heuristic is something like "doing work correctly takes time; failure happens quickly", where work is keeping your credentials secure. The fundamental problem is that it is difficult for users to differentiate between work done poorly from heavily optimized work done well.
Most of users don't know what SSL is, but they sure as hell feel more secure if you have a big lock or a nice green checkmark in the top corner, especially if they're thinking about putting in their personal info or credit card number.
Full disclosure: I'm a founder of an online marketing company. :-)
Once I fell for a phishing link, and the first thing to tip me off was the loading indicator was gone/too fast. In that instance it saved my neck as I changed my password asap.
Maybe users who realize due to a missing indicator should be smart enough to avoid such a trap in the first place, but I was definitely glad then and can see how this could be an active UX decision with positive implications.
* Is it because we as users have been conditioned, through years of faulty software, to assume crap crashes/hangs when there are unexpected delays?
* Or is the majority of computing so fast and instantaneous that we can't bring ourselves to wait on something that doesn't have an immediate end in sight?
http://cs.brown.edu/~sk/Publications/Papers/Published/emcahk...
Please Continue to Hold: An Empirical Study of User Tolerance of Security Delays
I wouldn't be surprised if the authentication process was taking long enough that a decision was made to add some sort of "loader" like this to make it appear like the extra time was absolutely necessary from a security standpoint.
It's a bit of a lazy decision from a UX standpoint, but it isn't entirely uncommon either: when you notice some action is slow, slap an animation in front of it.
Seriously, users will resubmit forms if the next page doesn't respond in a 1000ms - 1500ms.
The level of contempt of some developers is amazing, too bad they don't know UX 101
On iOS it's different, the developer knows the best.
I was sad when Sims 2 and Sims 3 didn't include this little gem. A cool bit a humor while you're loading the game? awesome.
I've used a few of their services before, and they are all horrible abominations from signup on through.
edit: I've seen this on too many financial apps to think it's an isolated incident. It's clearly a "thing" in financial apps (TurboTax.com does it all the time; I see it on my Bank app, lots of mobile apps, etc.)
There's gotta be a reason, even if it's wrong.