How are the recommendations developed?

Oxford Risk has developed an extensive proprietary database of recommendations, or "nudges", that cover a wide range of things individual investors can do to make better investment decisions. Some of these are related to what they should invest in, or how to construct a portfolio; some are about how they should make decisions and what investment processes would be effective; and some are about the information and communications they should look at.

 

Every recommendation is mapped to each of our financial personality scales such that each individual investor is shown the recommendations that most closely match their own particular financial personality signature. A simple explanation for why a given prescription is relevant to an individual is shown on each card, even though the algorithm may have accounted for a combination of several factors.

 

The recommendations themselves are developed using our very extensive experience and expertise in applied behavioural finance, by looking at the ever-expanding academic literature on financial decision-making and nudging, and by examining feedback provided via the tool about what recommendations were "helpful" or starred for different types of client. The list of recommendations is constantly being extended and refined as we examine good decision practice in new areas of investing, and explore behavioural solutions through both our own and academic research. The data and feedback we gather about how investors respond to, and act on, these personalised prescriptions will be used to tighten the mapping between personality dimensions and prescriptions, to refine the text, and to expand the set.

 

This video shows an older version of the web app, and will be updated. We've left it up because the functionality hasn't changed, just the appearance.