Capital Preferences opens office in Stone & Chalk

Capital Preferences, a leading global financial technology company has joined Stone & Chalk, the leading Australian independent, not-for-profit fintech hub.  Capital Preferences’ enterprise risk-profiling and product recommendation system is a next generation tool for banks, insurers, super funds and wealth managers who are seeking to better understand, advise, risk manage and grow their client base. The system is the brain that creates a patent pending set of measures on each client, called an Economic Fingerprint™.  The system adds scientific precision and efficiency to mission critical tasks for advisers and regulators– such as understanding a client’s true risk, time or legacy preferences.

“Capital Preferences’ aim is to replace outdated and imprecise client profiling methods with a new universal standard based on game theory and econometrics. The current tools and methods are failing us all” says Jamie Murray, the firm’s client development officer for Australia.

Capital Preferences technology delivers a series of simple investment games that allow clients to communicate their true preferences through their decisions not their words.  The results allow firms to answer the question “how confident are you that you know this client’s preferences?” with statistical confidence.  In December 2015, Capital Preferences placed second worldwide in the UBS Future of Finance Challenge out of over 600 firms from across the globe and was a finalist in the Citi Mobile Challenge – APAC. There were 1900 entrants.

The firm’s research agenda has been featured at Stone and Chalk’s Masterclass series, including the inaugural Masterclass hosted by the firm’s Co-founder and Chief Scientist Dr. Shachar Kariv.  Shachar is Chair of the Economics Department at University of California Berkeley, widely considered, by Bloomberg View and others to be one of the best and most influential economics faculties on the planet.

Bernard Del Rey, CEO of Capital Preferences said that, “Stone & Chalk is an ideal home for us to conduct R&D and service Australian financial institutions and their customers. Our goal is to make all Australians better financial decision makers.  We will do so through emerging partnerships, direct work with financial advisers and through the leading financial institutions that serve multiple financial needs. 

Today, the tools to truly understand clients are very limited and have no scientific precision.  In order for financial institutions to aid clients in making better decisions and make sure they deliver the value from the fees they are receiving, it’s not sufficient to just know their clients goals and constraints. You need to understand and measure their actual preferences and understand how they make financial decisions. That is where we fit in.  When you understand a client’s preferences, you have the potential for scalable and customised advice and solutions that speak to each and every client at the deepest level.  The Economic Fingerprint™ we offer is creating deeper understanding for all parties and it is the future of consumer financial services, today.”