Financial Planners need to adopt behavioural insights into their advice process if they are to continue to be fit for purpose, according to the white paper from investment platform Nucleus.
The white paper looks at how clients make financial decisions and how firms can apply these insights to the Financial Planning process.
The paper talks about how the advice sector has moved from a traditional transactional role towards are more behaviour-oriented approach where human psychology is beginning to play a greater role in the Financial Planning process.
The white paper from the platform concludes that whilst many advisers have close relationships with their clients, behavioural insights bring structure to what many advisers have been doing intuitively.
According to the paper: “It’s time for Financial Planning firms to grab this opportunity with both hands and build behavioural insight into their day-to-day practices. It’s time to learn more about the clients we look after to make sure they are best served. In short, it’s time for the rise of the behavioural adviser.”
Barry Neilson, chief customer officer at Nucleus, said: “Being able to understand clients on a deeper, emotional level is set to be the next evolution of financial planning. Not only will this make advisers more effective in how they already manage their relationship with their clients, but it will also set firms innovative enough to implement a service proposition driven by behavioural insights apart from their peers.
“Behavioural insights can give firms the ability to be much more tailored with their client communications and give a framework for advisers to intuitively shape advice that responds to the personality traits of their clients.”