FinaMetrica is developing its risk profiling tool into a “robo advice package”.
FinaMetrica currently offers a risk profiling questionnaire for advisers in the UK.
It plans to launch a 19-question investor profiling tool, which includes a psychometric risk test as well as covering time horizon, capacity for loss, investment knowledge and experience.
The tool is aimed at investors with less than £100,000 and will link the user’s score to one of a range of of multi-asset portfolios.
FinaMetrica says it can be used directly by consumers or as a guidance tool for advisers. It says firms such as platforms may wish to offer it to their advisers.
The firm is in discussions with a number of businesses in the UK and plans to launch the tool in the coming months.
FinaMetrica director Paul Resnik says: “We have offered our risk profiling tool for 15 years and robo advice is a natural progression from that.
“We’ve been using the investor profiler with a Swiss bank for over seven years, so we know it works effectively as a guided advice support for bank advisers, and we are in the final testing stage of a direct-to-consumer profiler in South Africa.
“We understand that the FCA is encouraging the development of automated services to the mid-market but that there is some anxiety around Financial Ombudsman Service liabilities. We’ve looked at a number of FOS decisions and there is a pretty clear pattern showing that good process is the key defence – and we are confident our tool will stand up to that.”