Financial Decision Support

Kidbrooke’s investment decision support toolkit is a Software as a Service offering that supports investment goal establishment, risk profiling and investment product ranking components of automated financial decision-making processes. Our roots as technology and risk management consultants enabled us to create a cutting-edge approach to each of the stages of the investment decision process creating a reliable base for a high-quality financial service.

Risk Profiling

Our team of experienced quantitative analysts created a unique risk profiling framework that helps to assess the consumers’ risk appetite in a more comprehensive manner than conventional methods.

  • Our methodology allows financial firms to tailor their offerings to more personalised risk profiles by correcting for inconsistencies in the customer responses as well as to create a comprehensive risk profile by combining a general and investment specific risk profiles;
  • We do not limit our risk profiling to connecting a customer’s risk level to a position in an investment product matrix. Instead, we define a unique risk profile for each combination of a customer’s personal financial situation and attitude to risk;
  • Our framework is flexible enough to enrich a financial institutions bespoke approach to risk profiling, be it an addition of a behaviourist factor or their own lists of questions.

Establishment of investment goals

Kidbrooke’s Investment Decision Support toolkit allows consumers to establish and adjust their investment goals in line with their preferences for their future quality of life.

  • Our methodology enables financial institutions to establish the granularity of the investment goal formulation that is fit for the purpose and regulatory standpoint;
  • Kidbrooke’s approach to establishing the investment goals allows the customer to adjust variables defining their “end goal” quality of life, in addition to changing the initial investment inputs.

Investment Product Ranking

Our approach to ranking investment products is a key element of enabling the platform to put the customers’ interests first by design.

  • Kidbrooke’s Product Ranking methodology is designed to rank investment products based on maximizing customers’ utility, which implies that financial guidance given by the solution is compliant with Mifid II by design;
  • The utility-based approach powering Kidbrooke’s Investment Decision Support allows financial institutions to capture risk-return relationship more accurately from a statistical perspective;
  • Kidbrooke’s ranking methodology unlocks the opportunity to provide the customer with truly personalised service achieved by an ability to assign each consumer an investment product based on their individual utility;
  • Diverging from the conventional mean-variance approach allows the ranking logic to work well in realistic conditions (for instance, the correlation between financial assets does not have to be constant over time for the model to work and the assumption of asset returns being normally distributed could be relaxed).

Implementation That Suits Your Infrastructure 

The OutRank Investment Decision Support toolkit can be integrated into our customers’ systems via multiple channels, depending on the existing internal IT infrastructure. The options include accessing our calculations through an API, building a processing engine or implementing our solution on our customers’ premises. 

Maintenance and Validation  

We monitor and support our product around the clock ensuring that the analytics powering your financial planning offering meet the highest standards of quality, efficiency and reliability. Moreover, our solution comes with a detailed and dynamic validation report, allowing you to quickly get a firm grasp on the quality and reliability of the solution empowering your offerings.