Greg Davies, Head of Behavioural Science at Oxford Risk, believes that the key to success in financial services lies in engaging with clients effectively and helping them achieve better outcomes. He suggests that combining behavioural finance, data science, and AI technology can create a powerful solution for personalized and scalable financial decision-making. This is where Behavioural Engagement Technology comes into play, helping individuals make better financial choices and mitigate the impacts of human behavior, such as investment inaction.
An example provided by Davies showcases how Behavioural Engagement Technology can aid investors in developing a moderate risk tolerance and diversified portfolio, resulting in excess returns compared to cash investments. This demonstrates the potential long-term benefits of utilizing technology to guide investment decisions and avoid missed opportunities for growth.
According to Davies, the root of poor investment decisions often stems from lack of engagement. Therefore, improving investor engagement is crucial, but simply increasing engagement levels without a personalized approach may not yield the desired results. This is where Behavioural Engagement Technology can be beneficial, offering tailored insights and tools to help investors find the optimal level of engagement that works best for them.
By leveraging Behavioural Engagement Technology, investors can gain access to personalized tools and recommendations that align with their individual needs and preferences. Oxford Risk’s platform aims to provide hyper-personalized solutions that enhance the effectiveness of investment engagement on an individual level. This tailored approach can help investors navigate the complex world of finance more confidently and make informed decisions that lead to better outcomes.