Capita plc today announces the launch of Synaptic Risk Explorer, a software-as-a-service investment research tool for financial advisers and wealth managers to provide suitable investment planning for their customers.
Financial advisers need to explain the role of risk and reward to clients to ensure they can give their informed consent for the investments they would like to make. To do this, financial advisers need to analyse investment data from various external sources, which can be complicated and time consuming. Risk Explorer offers a simple solution that combines data from these sources and ‘visualises’ investment outcome projections, demonstrating the relationship between investment and risk.
Importantly, the new solution will support compliance with the Markets in Financial Instruments Directive (MiFID II) regulation that requires investment advice firms to provide investors full details of all service charges, as well as any costs on investment returns, before they provide services to investors.
Risk Explorer provides reliable probability-based forecasts of investment outcomes that support customers’ goal-based financial planning. The solution calculates a client’s attitude to risk ranging from ‘cautious’ to ‘adventurous’ and analyses ‘portfolio risk’ to assess potential investment losses on a case-by-case basis.
Financial advisers can also use Risk Explorer to calculate the impact of variables such as financial advice costs and inflation to calculate broadly reliable expected growth values. Analysis of these variables enables advisers to understand how investments may perform and use those insights to inform their customers.
Risk Explorer is fully integrated with Moody’s Analytics Economic Scenario Generator, a financial intelligence and analytics tool, which provides an industry-leading model providing consistent, objective measure for investment risk.
Stephen Ferry, managing director of Capita’s Synaptic Software, said: “Risk Explorer was developed by combining our software capability with our digital expertise in the financial services sector. Our intuitive solution will help financial advisers deliver quicker and better services to their customers.”
