Nearly two thirds (62%) of wealth managers in New Zealand claim to rely mainly on intuition when assessing client risk suitability and recommending appropriate investments, new research from behavioural finance experts Oxford Risk shows (please see the attached press release).
The study with wealth managers who collectively manage assets of around $144.5 billion found they are not just relying on their intuition. Almost all (94%) claim to have good tools and systems to back their intuition on what will work for investors.
Up to 62% believe there is enough good technology available in the marketplace to help them assess clients’ risk suitability.
But the research shows there is still strong support for better systems to help them improve the service to clients and better assess risk suitability. Around 70% admit that existing systems are still too reliant on subjective human judgements.
And three-quarters (76%) admit that existing systems are too cumbersome to respond adequately to changes in client’s circumstances which has been a particular issue in the light of recent volatility following the financial impact of COVID-19 and rising inflation and interest rates.
Oxford Risk, which launched in New Zealand nearly two years ago, builds software to help wealth managers and other financial services companies assist their clients in making the best financial decisions in the face of complexity, uncertainty, and behavioural biases.
