Behavioural Finance Consulting

Insights & Publications

Explore in-depth insights, reports, analysis, and our latest updates.

Women Are Changing the World of Investment

Advisory Services

Women are emerging as powerful forces in the investment world, set to control nearly 45% of assets under management in Western Europe by 2030. Despite this growth, financial services often fail to address women’s distinct needs and preferences. Women typically favour cautious, diversified, and low-risk investments, with a strong interest in sustainability and ESG-focused solutions. However, barriers such as limited funds, complex financial jargon, and a lack of visible role models hinder their full participation. Addressing these challenges and aligning financial services with women’s priorities—such as long-term planning and wealth preservation—is crucial for fostering financial inclusion and driving meaningful change in the investment landscape.

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Key Elements in Investment Suitability

Wealth & Asset Management

Assigning an appropriate portfolio to a client requires a deep understanding of their financial goals, personal preferences, and financial capacity. For accurate investment suitability assessment, the risk assessment framework must consider four critical dimensions: financial capacity (quantitative dimension), psychological tolerance to risk (qualitative dimension), financial knowledge and experience (cognitive dimension), and ESG values (values-based dimension). These dimensions offer a robust foundation for structuring investment recommendations that align not only with the client’s financial needs but also with their psychological comfort and personal values. Integrating these perspectives into suitability assessments fosters informed decision-making, enhances client satisfaction, and supports comprehensive risk management over time.

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Investment Suitability and Portfolio Reporting – Part 2

Advisory Services

Investment suitability is strongly influenced by how portfolio information is presented. Variations in content and format can shape investors’ risk perception and tolerance, potentially leading to skewed assessments and suboptimal investment choices. Discrepancies in presenting returns (net vs. cumulative, percentages vs. monetary), risk ranking, performance order, and format (tables vs. graphs) can alter investor judgement, impacting their understanding of risk and potential gains. A transparent, consistent presentation framework that minimises cognitive biases and supports informed decision-making is essential to align investments with investors’ true risk preferences and financial goals.

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Investment Suitability and Portfolio Reporting – Part 1

Advisory Services

Investment suitability depends on consistent, transparent portfolio reporting. Variations in content, such as differing amounts, portfolio options, time horizons, and risk periods, can lead to misaligned risk perceptions and suboptimal choices. By standardising portfolio presentation and addressing cognitive biases, financial firms empower investors to make decisions aligned with their true preferences and tolerance for risk.

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The Future of Lending

Banking & Fintech

The future of lending is being transformed by modern data and behavioural analytics, redefining risk assessment and client management. Traditional lending practices often exclude millions of people due to limited data, leaving many “credit invisible.” However, companies like Begini and Behavioural Financial Consulting are at the forefront of innovation, using data-driven insights and advanced technology to create more inclusive, personalised lending experiences. From improved fraud detection to gamified psychometric assessments, these modern solutions offer lenders smarter, more accurate ways to assess creditworthiness and manage clients, ensuring fairer and more secure lending.

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Why People Should Invest

Wealth & Asset Management

Investing is essential for securing your financial future in today’s uncertain world. As job security declines and traditional pensions become less reliable, relying solely on income or government support is no longer enough. Investing offers a pathway to long-term financial stability by growing your wealth, helping you meet both short-term needs and future retirement goals. Like pursuing higher education, investing requires careful planning, regular contributions, and patience, but it rewards you with future financial security. By adopting a long-term mindset and setting clear goals, you can take control of your financial future and avoid unnecessary debt or financial struggles later in life.

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