1 Finance, a personal finance advisory in India, said on Tuesday that they are the first financial institution in the country to acquire a psychology patent for their scientific assessment framework called MoneySign.
The MoneySign assessment framework has been developed with the help of global psychology experts and behavioural scientists to solve the age-old problem of investor risk appetite analysis.
“The MoneySign assessment framework uses the most extensive framework in psychology called The Big 5 or O-C-E-A-N model, to assess an individual’s risk appetite. The team of financial experts at 1 Finance qualified and related the significance of different traits and biases to individual financial behaviour. This was then modelled across different animal archetypes with the closest human DNA level match from Darwin’s theory of evolution to assign specific MoneySign to individuals,” the company said in a statement.
“The MoneySign assessment framework is a significant milestone for 1 Finance, and it will help the company to provide a holistic financial advisory service to its members. We are committed to partner with our members on their journey to financial wellbeing that meets the evolving needs of our members and help them achieve financial wellness,” said Jeet Marwadi, cofounder and MD at 1 Finance.
The MoneySign assessment framework is currently available for free on the 1 Finance app. Since its launch in December 2022, the framework claims to have successfully detected the sign of close to 10,000 affluent and emerging affluent individuals with a net worth of over Rs 2.5 crore or financial exposure of over Rs 20 lakh. The company has crossed the Rs 1000-crore mark of value under advisory in its beta launch since February 2022.
“We believe there are enough and more products to suit every customer’s needs, not just financial but emotional as well. There are thousands of tools that capture the financial aspect but no tool to factor on the critical emotional aspects. We are hopeful this will change the way financial planning is done here on,” added Keval Bhanushali, cofounder and CEO at 1 Finance.
1 Finance is based in Mumbai and is backed and mentored by marquee investor Marwadi Chandarana Group – a pioneering force in India’s financial services sector that also powers successful operations in the fields of education and alternative energy. The Marwadi Chandarana Group also comprises of Marwadi University, Marwadi Financial Services, Pixon, and Marwadi Chandarana Intermediaries Brokers Private Limited (MCIPL).