Bambooing has been developed by Suitable Strategies in partnership with behavioural finance academics.

FNZ said it would take retail clients beyond a risk-based approach, to measure financial knowledge, investment engagement and risk aptitude of individuals, providing a new measurement system that financial institutions would use to better understand their customer’s capability, and create appropriate savings and investment solutions.

Recent changes in the regulatory environment had increased pressure on the industry to demonstrate that all financial product sales, no matter the channel, were suitable, FNZ said.

Advisers be able to access Bambooing through FNZ’s web and mobile solutions, allowing them to assess their customer’s financial capability, understanding and engagement. FNZ said it would reduce the risk of advisers exposing consumers to inappropriate investments or missing opportunities.

Roger Portnoy, global head of strategy and innovation, said: “It’s the first suitability tool we have seen that has taken the FCA’s guidance on client knowledge, investment interest and risk awareness to heart.

“The service provides insight to assist the consumer in better understanding their financial and risk aptitude, while presenting retail wealth solution providers with dashboards that can properly explain, both absolutely and relatively the capability and engagement of their current and prospective customer.

“With this backdrop, our partnership comes at a perfect time. FNZ and Suitable Strategies share the same vision for the industry, including a future ‘financial capability certificate’ for consumers that they can use to shape their financial decision making.”

Michael Free Suitable Strategies director, said it would give the industry the ability to meet consumer needs more accurately and demonstrate that to the regulator.

“There tends to be a view that suitability is about risk mitigation and regulation but when approached positively it also creates significant opportunities for new business.”