The challenge is not only to deliver compliant profiles, but to deliver profiles which are more accurate and more trusted by the investors themselves resulting in more commercial opportunities.
How to Boost Commercial Performance Thanks to Compliance?
Regulators all point in the same direction
Behavioral finance to the rescue
“The financial sector often uses non-scientifically validated methods to find out the risk appetite of consumers.”Alexandra van GeenSenior Behavioral Economist, AFM (NL)
“Tools, models and decisions made by AI need human judgement – to provide explainability and ensure fairness, to design user interfaces and to overcome barriers to their use.”Laura SmartBehavioral Economics & Design Unit Financial Conduct Authority (UK)
Use Behavioral Finance Findings
“These tools must be able to combine the suggestions from classic economic literature with the indications of behavioral finance and of psychometrics, the science of measuring psychological magnitude.”Nadia LincianoHead of Economic Studies Office, Consob (IT)
How does it work?
A SAAS-BASED SOLUTION TO BOOST YOUR RISK PROFILING
The Profiler goes beyond a standard risk profiling questionnaire. It not only looks at the classic risk-reward trade-off, but it also measures a customer’s ability to bear losses, as suggested by the European Securities and Markets Authority (ESMA).
The hyper-personalized risk profile captures customers’ real concerns when investing and reveals their rational and emotional preferences. The gamified interaction strongly appeals to the younger target audience.
More insightful profiling leads to customer trust and real preferences enables superior advice, then ensuring ongoing customer engagement, because knowing your client paves the way for a long-term relationship.
Successfully tested with several regulators
Before the deployment of the solution
What people are saying
about the solution
DEFAULT WITHIN KBC GROUP
“Profiling your client-investor is mandatory in case of investment advice. It is all about the way and how to do it taking into account MiFID.”Ingrid D'HaeyerHead Group Legal Banking Products, KBC Group
“We were the first within KBC GROUP but also in Europe to embrace this new behavioral methodology for our profiling. It proved to be a game changer but also our clients are raving about it.”Peter RoebbenCEO, KBC Bank Ireland
“We integrated the findings of behavioral finance to comply with ESMA guidelines. Today.”Dara O'BrienSenior Investment Manager, KBC AM Ireland
“We see the output of the profiling at the most granular level to check suitability rather than a fail or pass.”Jos StappersProduct Manager Advisory Services, KBC AM
INTERACTIVE & GAMIFIED
“Our customers have reacted really positively to the new risk profiler. It allows our customers to consider more in depth what type of investor they are before making their investment decisions”Jo ReynaertsChief Commercial Officer, KBC Bank Ireland