Greg Davies, Head of Behavioural Science at Oxford Risk, says: “The winners in financial services are likely to be those who best engage with their clients and help them to achieve better outcomes. 

“Behavioural finance, data science and AI technology together form an exciting combination to help this happen at a greater scale, and with more personalisation, than ever before. Behavioural Engagement Technology can help us all make better financial decisions.”

It is in this way Behavioural Engagement Technology helps mitigate the cost of being human, particularly when it comes to investment inaction.

For example, an investor that develops a moderate risk tolerance in a globally diverse multi-asset-class ‘optimal’ portfolio  – thanks to Behavioural Engagement Technology  – can expect excess returns over cash of around 4-5% per year.

So, even though choosing not to invest can help investors sleep soundly at night, this can come at a cost long-term.

Davies continues: “Investing badly is due to poor engagement. This points to a conundrum: isolated tactics to just get investors merely more engaged will only take us so far… and at some point could even backfire.

“Appropriately engaged investors are all alike, but each badly engaged investor struggles in their own individual way, trying to work out what to do, for every investor, every time – to reliably capture more of those lost returns – is impossible without technology.”

The perks of Behavioural Engagement Technology 

Leveraging Behavioural Engagement Technology can, therefore, provide insights for investors to find the ‘sweet spot’ in their engagements. 

But, of course, this sweet spot is different for every investor, and Oxford Risk’s Behavioural Engagement Technology platform can help deliver hyper-personalised, bespoke tools to deliver the most effective investment engagement individually.