Virtual Reality Risk Tolerance Measurement With Biometric Monitoring
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Solution Overview
Problem
Current methods for incorporating user's risk tolerance into investment planning are unreliable due to inaccurate user responses, often influenced by psychological biases.
Innovation Solution
A financial institution computing system uses augmented or virtual reality to simulate investment outcomes, monitors user biometric responses, and generates a user stress score by averaging normalized biometric responses to accurately measure risk tolerance.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Measurement precision
If traditional questionnaires are used to assess risk tolerance, then the assessment process is simple and quick, but the accuracy of risk tolerance measurement deteriorates due to psychological biases
Solution Approach 1:
The patent replaces traditional mechanical/questionnaire-based risk assessment with a biometric monitoring system that uses physiological signals (heart rate, skin conductance, pupil dilation) to objectively measure risk tolerance, eliminating the influence of psychological biases on self-reported data
Solution Approach 2:
The patent introduces virtual or augmented reality environments as an intermediary between the user and the assessment process, allowing users to experience simulated investment outcomes while their biometric responses are monitored, thereby obtaining more accurate risk tolerance measurements
2Measurement precision
If virtual or augmented reality is used to simulate investment outcomes, then the accuracy of risk tolerance measurement improves through authentic biometric responses, but the device complexity and cost increase
Solution Approach 1:
The patent integrates multiple functions into a single system: the VR/AR headset simultaneously provides the immersive investment outcome simulation environment and houses the biometric sensors for monitoring physiological responses, eliminating the need for separate assessment devices
Data Source
AI summary
One embodiment relates to a computing system. The computing system includes a processing circuit. The processing circuit is configured to simulate a plurality of investment outcomes, display at least one augmented reality or virtual reality depiction of at least one of the plurality of investment outcomes via a display device, determine a reaction of a user to the displayed augmented reality or virtual reality depiction, generate a user reaction score based on the reaction of the user, and generate an overall score for each of the plurality of investment outcomes by weighing the user reaction score and investment outcome.