Scottish Widows Platform has integrated with Oxford Risk Investor Compass, an end-to-end investment suitability software tool, to help advisers match their clients to tailored investment options.
Built on advanced behavioural finance technology from Oxford Risk’s team of experts, the tool assesses customers’:
· Financial circumstances and risk capacity,
· Preferences for responsible investing,
· Investment knowledge and experience.
The tool determines an investor’s ‘financial personality’ through psychometric testing, which measures willingness and ability to take investment risk and tracks investors’ emotional resilience throughout the investing journey. An advanced algorithm establishes risk tolerance and capacity, allowing advisers to better understand client behaviours and attitudes towards responsible investing.
These assessments are then brought together in a suitability report which enables advisers to steer their clients towards the most appropriate investments. The tool also provides extensive data and management information for behavioural client segmentation and targeted sales.
This news follows a suite of integrations with third-party systems on Scottish Widows’ Platform since launch, with 16 back-office systems and six new tools and applications already integrated. These enhancements form part of Lloyds Banking Group’s commitment to invest £180m, over three years, in continuous upgrades and innovations for the platform.
Ross Easton, Head of Intermediary Platform Propositions, Scottish Widows commented: “Addressing the advice gap is a top priority for us, and integrating such a well-regarded and pioneering tool as Oxford Risk’s Investor Compass will help advisers improve investor engagement and demonstrate how they can add value for clients. This is the latest integration into the Scottish Widows Platform, part of our broader strategy and commitment to invest in the best technology for our advisers. All our platform integrations and tools support advisers with advanced solutions to make their lives easier, increase productivity, and lead to better client outcomes.”
James Pereira-Stubbs, Chief Client Officer, Oxford Risk said: “We’re delighted that Scottish Widows has chosen to integrate Oxford Risk’s Investor Compass. A comprehensive and behaviourally focussed risk suitability process is crucial in revealing an investor’s willingness and ability – both financial and emotional – to accept risk, whilst being able to know how to personalise communications to support them in taking control of their finances. This tool goes far beyond risk tolerance and onboarding – Investor Compass allows advisers to provide better financial outcomes for investors whilst increasing engagement and evidencing the value of their services.”
