An investor risk profile is a regulatory requirement before any financial advice or investment planning can be delivered. Known as the suitability assessment, this process is designed to ensure that recommendations or portfolio strategies align with a client’s needs and objectives.
However, many financial institutions still struggle to meet these regulatory demands efficiently.
everyoneINVESTED, which offers behavioural technology that integrates with banking technology, recently explained how investors can be empowered through data ownership.
The conventional approach of risk profiling is often slow, inconsistent, and fails to engage users—driving up operational costs and reducing digital conversion, it said. On top of that, investors are typically required to complete similar questionnaires each time they want to switch or compare providers, which undermines their sense of control and discourages them from investing altogether.
The blog predicts that in the future, investor profiles should belong to the investors themselves. Just as individuals carry identification documents, they should also be able to carry their investor profile—standardised and interpretable by all financial institutions. While firms may use that information differently in forming advice or solutions, the profile itself should be portable and controlled by the investor. No longer should someone need to maintain multiple profiles across banks and platforms.
That blog also proposed a threefold solution for transforming the way data is gathered. First, it called for a more engaging and self-driven digital process to increase completion rates. Second, it suggested replacing traditional Q&A formats with a more quantitative, data-driven approach to enhance accuracy. Third, it emphasised the ultimate objective: to encourage more people to invest, boosting client engagement and overall business growth. These ideas remain central to everyoneINVESTED’s proposition, particularly as effective onboarding is vital to nurturing long-term investor relationships.
Since 2019, the landscape has evolved significantly. Public awareness of data rights and expectations around digital privacy have grown. Individuals now commonly expect to own their personal data, assume it is secure, and rely on robust legal protections such as GDPR. On the technical side, new frameworks like the EU’s EiDAS2 architecture and emerging standards for verifiable credentials and digital wallets are enabling more secure and interoperable digital identities.
Understandably, some financial institutions may view the portability of suitability data as a competitive risk, since it allows clients to compare offers more easily, it said. But the broader shift in the industry is towards transparency, investor empowerment, and data sharing. At everyoneINVESTED, the belief is that embracing ownership and transferability of suitability profiles will not weaken firms—it will strengthen the entire ecosystem. With scalable and inclusive investment services, the focus can shift to ensuring more people are equipped to participate in financial markets, regardless of where they bank.
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