Scottish Widows’ Platform has integrated Oxford Risk’s Investor Compass, an end-to-end investment suitability software tool that aims to support advisers in matching their clients to bespoke investment options.

Developed using behavioural finance technology, the tool assesses clients’ financial circumstances and risk capacity, preferences for responsible investment, and investment knowledge and experience.

Investor Compass determines an investor’s ‘financial personality’ by measuring willingness and ability to take investment risk, and tracks their emotional resilience throughout the investment journey.

Their risk tolerance and capacity are also established, which seeks to enable advisers to better understand client behaviours and attitudes towards responsible investing.

These assessments are then brought together in a suitability report, giving advisers the tools to steer their clients towards the most appropriate investments.

The integration of Investor Compass follows the integration several third-party systems on Scottish Widows’ Platform, with 16 back-office systems and six new tools and applications already integrated.

This is part of Lloyds Banking Group’s commitment to invest £180m over three years on updates and innovations for the platform.

“Addressing the advice gap is a top priority for us, and integrating such a well-regarded and pioneering tool as Oxford Risk’s Investor Compass will help advisers improve investor engagement and demonstrate how they can add value for clients,” stated Scottish Widows head of intermediary platform propositions, Ross Easton.

“This is the latest integration into the Scottish Widows Platform, part of our broader strategy and commitment to invest in the best technology for our advisers.

“All our platform integrations and tools support advisers with advanced solutions to make their lives easier, increase productivity, and lead to better client outcomes.”

Oxford Risk chief client officer, James Pereira-Stubbs, added: “We’re delighted that Scottish Widows has chosen to integrate Oxford Risk’s Investor Compass.

“A comprehensive and behaviourally focused risk suitability process is crucial in revealing an investor’s willingness and ability – both financial and emotional – to accept risk, whilst being able to know how to personalise communications to support them in taking control of their finances.

“This tool goes far beyond risk tolerance and onboarding - Investor Compass allows advisers to provide better financial outcomes for investors whilst increasing engagement and evidencing the value of their services.”

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