Behavioral Finance

Leverage Technology to Grow Behaviorally Smart Advisors

In recent times our firm has been taking a proactive stance in helping Financial Services Firms with the inherent tension of increasing client engagement (sustainable revenue) and meeting the increasing regulatory pressure of FINRA Rule 2111 for enhanced product suitability compliance (firm protection).  How are you closing this gap?

The hidden obstacle to the problem is a lack of human behavioral awareness, and the inability to leverage behavioral insights. What needs to be objectively discovered is the risk profile of the client and all of the behavioral biases that influence financial decision-making.

So imagine a new world whereby your firm has a technology system and the business processes to match the different behaviors of advisors to clients and solutions offered on a real time basis. What this means for the client is a customized lifelong service experience and for the firm increased productivity and the mitigation of business risks.  A proven bottom line “win-win” for both.

Moving into the new world that we envision requires the installation of behaviorally smart systems into your firm’s technology systems. In specific terms, the mission is to deploy Communication DNA and Financial DNA into your firm’s CRM and financial planning software.  This is what we call an Engagement Compliance System. This interconnected system helps align your firm’s financial planning processes through the client life cycle with the compliance documentation required to meet suitability compliance.

Some of the current issues for your firm to overcome are:

  • Home Office has financial responsibility and over rely on advisor processes
  • Poor advisor client communication leads to failed discovery
  • Different advisor and client learning styles lead to solution mis-perceptions
  • Fact Finds are “tick in the box” compliance steps for Home Office
  • High variation in processes followed by advisors in client discovery
  • Traditional risk profiles not satisfactory for behavioral discovery
  • General lack of objective client behavior discovery – advisor bias
  • Home office internal audit processes do not focus on behavior and suitability
  • Investment portfolio strategies are spontaneously changed based on market and not client attitude changes
  • Advisors are personally not equipped to master the role, and clients are not financially literate

The Engagement Compliance System provides many important features including:

  • Customized internal home office-advisor-client communication
  • Matching advisors to clients and solutions offered
  • Adapting presentation of solutions to different learning styles
  • Enhanced financial planning discovery, recognizing the risk profile and all behavioral biases
  • Continuous monitoring of changes in client situations to solutions
  • Improved gathering , production and retention of online documentation at all stages of the process integrating client behavior

To learn more, please watch our video, or go to our website at


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