TRYING TO ENCOURAGE INVESTORS? BE CAREFUL HOW YOU DO IT!
On November 17, 2022, the OSC published a notice about gamification, which includes an extensive research report authored by the OSC’s Investor Office. It is a deep dive into the behavioural science that is used by investment firms to encourage investing. The report presents research on gamification and other behavioural techniques and analyzes the use and impact of facilities like leaderboards, chat rooms, visual goal design markers, and others, on investing. The findings suggest that while there may be some positive influences, there is also a risk of negative influences on investor behaviour. The Notice was also highlighted by the Globe and Mail.
The confluence of wealth and technology – wealthtech – is transforming the investment and asset management industry – from how we invest to how we connect with clients. Wealthtech is delivering behavioural systems that enable advisors to develop deeper client relationships by bringing non-conscious factors to the level of consciousness. These behavourial systems extend into risk tolerance software, behavioural engagement software and CRM tools. IIAC Members are encouraged to join us on November 24 to hear unique perspectives on this and more.