The US-based fintech firm, Capital Preferences has announced its first adviser partnership and a launch of a Software-as-a-Service (SaaS) behavioural profiling and portfolio assessment platform, for Australian advisers.
The firm, which specialises in behavioural economics and financial technology, said that a new platform, TrueProfile, would use game theory and advanced economics to replace unscientific client risk questionnaire and data collection methods.
Additionally, the platform was built on the assumption that clients would not accurately state their preferences for risk and they would only truly show the risks they would be willing to take by making decisions.
Capital Preferences’ chief executive, Bernard Del Rey said: “Pinpointing loss aversion and the level of consistency in a consumer’s decision-making is a real breakthrough.
“You can immediately add to your compliance safeguards by identifying those clients who need extra help because of inconsistent decision making.”
The company said the launch followed 18 years of global research and development, as well as ‘ongoing refinement’ with leading Australian and global financial advisers.
According to the firm’s head of Australian Client Partnerships, Jamie Murray the pre-launch response was very positive as most advisers were unhappy with their questionnaires.
“Systematically staying in tune with clients’ evolving preferences adds to an adviser’ value proposition, and allows them to better differentiate themselves,” he said.
Some of the platform’s early adopters in Australia included Affinia Financial Advisers, Paragem and Henderson Maxwell.
