Clients self-reported as "aggressive" investors panic-sell at nearly the same rate as "moderate" ones during market stress.
Behavioral monitoring captures reality.
There's a compliance opportunity in that gap.
โ https://t.co/e0MHuoiJqC
MiFID II requires suitability.
But no regulation can force a client to be honest about their risk tolerance.
Hereโs the problem that regulation misses โ and how behavioral intelligence fixes it. ๐งต
Behavioral profiling changes this.
Continuous monitoring of actual decisions โ not surveys โ reveals when a clientโs risk behaviour has drifted from their stated preference.
You catch it before they panic-sell. Thatโs better compliance AND better outcomes.
Clients who self-report as "aggressive" investors panic-sell in volatile markets at nearly the same rate as "moderate" ones.
Because a questionnaire measures stated preference. Not actual behavior.
There's a difference. It's expensive.
โ https://t.co/3Qzd5yaFIz
Which cognitive bias costs you the most?
Confirmation bias, overconfidence, loss aversion?
FinanSee profiles your behavior and reveals your blind spots before they cost you.
Free on iOS + Android โ https://t.co/gVmYfBeTIp
The other 11 biases (disposition effect, herd behavior, anchoring, status quo bias, mental accounting, narrative fallacy, hindsight bias, availability heuristic, sunk cost fallacy, framing effect, illusion of control) are all in our full article.
Link in bio. Free read.๐
4/ Recency bias Whatever happened last is what you expect next.
Crash in Feb? Youโre bearish. Rally through Q3? Youโre bullish. The most recent data anchors your entire forecast โ even when historical base rates say otherwise.
Built with: ๐ ๏ธ @GoogleForStartups โ @WebSummit Alpha โ LaNave Incubation โ
GDPR + MiFID II aligned. โ
If youโre a PM, CIO, or quant analyst โ slide into DMs. Pilot spots are limited. โ๏ธ
https://t.co/mpPC3MJn8g