Neurodecision is a Luxembourg-based start-up which offers a compliant, user-friendly and scientific customer risk-profiler for Financial Advisers. It was founded by Tiffany and Julien, with backgrounds in Behavioral Finance, Big Data Analysis and Wealth Management. With 1000+ investor profiles in its database and partnerships with major financial institutions, Neurodecision is a first mover on KYC (Know Your Customer) behavioral data processing.
What made you want to start this company?
Our main topic is amazingly interesting! It relies on some of the latest advances in behavioral finance and machine learning, which are both booming fields of new technologies development.
Tiffany has a long experience of consulting and behavioral finance. She graduated from HEC and ENS Ulm and is now pursuing a PhD in behavioral finance. She noticed that financial advisors were not handling customer risk profiling as regulators expect them to. Therefore, she had the idea to develop a rigorous risk profiling tool. On the other hand, I focused on statistics and computer science during my studies at Cambridge University, ENSAE and professional experiences in banks and hedge funds. Having complementary skills, we were able to embrace the whole project and learn a lot from each other.
What is the core idea of your business?
Following the financial crises in 2000s, customer risk profiling by financial advisors has become compulsory in most countries. Regulator’s guidelines are very strict. The financial advisor should have a deep understanding of his client’s psychology to advise him on suitable financial products. Maybe you don’t like taking risk or cannot afford to lose too much or tend to be overconfident in your appreciation of risk.
However, risk profiling questionnaires used today by the industry are not always compliant with local regulation, only 50% in the UK or in France for instance, and cruelly lack scientific validity.
Based on the latest advances of behavioral finance, Neurodecision is a compliant, digital and scientific application to help financial advisors improve customer satisfaction and comply with the complex regulation on client risk-profiling.
How the FinTech hype in Luxembourg impacts your startup?
Luxembourg is a major financial center, especially for private banking, which is our target market. Its central place in Europe and its international community are real assets. We also feel that not only the government but also business angels, VCs and major companies like KPMG are willing to support the FinTech growth.
You are now based at KPMG “khube” how is it like?
To be honest, we don’t really know! The program has just started. They have been very present and helpful so far, we have high expectations from our collaboration.
What have been your major achievements to date?
Having a functional version of our product! Our software is currently freely available online. Developing this first version has required to master very different topics, ranging from basic mathematics to Nobel-prize awarded Prospect Theory!
With this first version, we have already worked with a major bank in Hong Kong. We have also won several startup competitions like the EDHEC TEE, Startup Bootcamp Pitch Day or the Hong Kong British Chamber Business Angel Program. And last but not least, we have convinced KPMG Luxembourg to support our project!
What are the plans for Neurodecision in the near future?
Find our next clients!