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By Lynne LANDAU, Product Manager for Private Banking, Temenos and Thibaut JACQUET-LAGRZE, Product Strategy Director, Temenos
Pre financial crisis, investment profiling was simplistic, limited to understanding a clients risk tolerance and agreeing on a trade-off between risk and expected return. Conservative investors would be offered a few investments with a predictable return, whereas more aggressive or long-term investors would be offered more risky investments. An investor aiming for a good balance between security and risk would be assigned a combination of investments in safe, fixed values (bonds) and shares.
These investment strategy classifications served as a proxy for risk tolerance while often using simple...
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