Author: Angela Ekwu
The Neuroprofiler questionnaire is more than just a questionnaire as it addresses three major themes in discovering the unique preference of a client with up to a 1000 different investor profiles.
The three major thematic segments are on risk, MiFID II and ESG. These are closely followed up however by two other segments, one on recommendation and the other on education. The risk segment measures the appetite for profit and loss which is usually obtainable in making a traditional investment. As basic as this factor is, there has been a lot of misconstructions and assumptions that have led to many lawsuits. This, however, has now been addressed to a large extent by major banks and investment firms worth their salt.
Neuroprofiler, founded in France, operates under the European Union regulation on Markets in Financial Instruments Directive (MiFID). Its objective is to protect the interest of investors in terms of transparency concerning their investments. Transparency is a new trend that has been widely accepted in other sectors particularly in Europe and increasingly across the world. Transparency is key as it means more accountability and less shadiness.
ESG theme on the other hand is also an offshoot of transparency. An investor deserves to and has the right to know what their contribution is invested in. Increasingly however, they have a right to choose which best suits their ESG appetite from the jump and investing, specifically in those.
Neuroprofiler as the name implies accesses the profile of a potential investor and makes recommendations to the investor directly and could as well educate them on options that seem to be a good fit based on answers provided earlier by the investor in the gamified simulation. The usefulness of behavioral finance through a gamified questionnaire cannot be overemphasized in this day of digitization with the rights of customers being even more protected.