Amplifying Investor Engagement Using Risk and Behavioral Insights

New psychological and behavioral tools are transforming investor risk profiling from a box-checking exercise to an enrichment process that incorporates planning and other long-term investor needs. As the investor belief system unfolds and changes over the lifetime of the advisory relationship, the real-time capture and deployment of the investor’s risk profile can be used to energize engagement.

Risk management has never been as important as it is now for investors and the wealth management value proposition. The flood of news across emerging and established media channels has stirred a desire for action among investor segments, especially Gen Y and Millennials. Market volatility also clouds the long-term investor view. Javelin Strategy & Research 2023 investor survey results also show that investors are experiencing a crisis of advisor trust. To mitigate this, dynamic forms of investor monitoring, such as behavioral analysis, must be incorporated into the client experience alongside traditional measures of investment risk tolerance.

Key questions discussed in this report:

• How has the application of risk assessment changed to encourage investor engagement?
• What are the leading fintech providers advancing risk applications?
• How can portfolio risk enhance discussions and allay investor fears?
   

Companies Mentioned:

AdvisorEngine, Advyzon, AndesWealth Technologies, BehaviorQuant, Betterment, Capitect, DataPoints, DNA Behavior, Dynasty Financial Partners, eMoney Advisor, Envestnet, Focus Financial, Morningstar, Nitrogen, Orion Advisor Tech, StratiFi Technologies, TIFIN, Tolerisk, Wealthfront