Behavioral Matching Simultaneously Meets Both Challenges

Behavioral Matching Matters

In working with financial services firms (including banks and insurance companies) all over the world I have found many are at different stages of searching for the right path to become more client centered. On this journey to the next level they all have the primary challenges of growing their revenues and managing the ever increasing compliance burden. In my conversations with executives, they would say that solving these challenges is contradictory.

The question then becomes what strategies can be deployed to simultaneously build greater relationships with clients (and thereby revenue) and at the same time enhance compliance? The tension between building a relationship culture which is revenue positive and enhancing the provision of compliant offerings can be solved with a human behavioral solution. When you boil it down both issues are deep down caused by human behavior. Harvard research in 2002 tracks 87% of all business issues down to human behavior. Most of it is the lack of interpersonal communication skills, not the competencies of the parties involved. Whilst it is easy to see relationships as driven by communication, so is compliance. Compliant offerings cannot be made without the right communication framework.


How information is framed will be very important to guiding clients into the right solution. For instance, some clients will need to hear a recommendation through the lens of their family stability rather than financial goals, and others will want benchmarks and specific data versus a summary of the key facts. Also, the bedside manner of advisors is critical as some clients will want logic and others a more empathetic conversation. Getting it wrong causes more emotion and the likelihood of increased litigation. Just look at the fact that research shows up to 80% of medical malpractice cases are caused by poor medical staff communication.?


So, imagine a world in 3 years where your firm through the one technology platform deploys online behavioral management solutions that are heavily rooted in validated behavioral science to:

1. Match the advisory team to each client (and their family members), thereby enabling communication with every client based on their unique terms, including the re-framing of key information and engaging them with a customized service experience in every interaction; and

2. Match the solutions delivered to every client based on their unique financial personality, thereby increasing decision-making confidence and also providing risk management for the firm.

3. Dynamically monitor the mood of every client as the market moves, and the continued suitability of the solutions the client is invested in. Put another way the approach of outfitting the client in a tailor made suit and providing customized life-long experiences will engage them and at the same time provide higher levels of corporate risk protection. Our research shows that such a behavioral matching approach can increase revenue by 23% a year and also substantially minimize the costs of litigation and fines. The key for the firm to implement such a matching approach is to make it a corporate imperative from the top down. The advisors and sales teams need to be engaged in the strategy that behavioral matching builds a relationship culture. The home office teams with the proactive input of the compliance team need to build robust technology processes which enable the real time monitoring of financial personality, solutions, in person meetings and email communications so that they are customized to the client and are also compliant.


What are the drivers which make it compelling to implement a behavioral matching approach happen now?

1. The need for financial services firms (including banks and insurance firms) to be completely client centered. Every dimension of their service must be “client first”, including the charging of fees. President Obama’s statements earlier this week on bad investment advice highlight the need is now.

2. The market competition for clients is very strong. The winners will offer a differentiated service which includes the provision of highly customized offerings. The focus on demographic based “persona” models are not enough as they do not provide personality insights which are more differentiated.

3. The regulatory environment over the last 5 years has got more strict in the requirements to offer suitable solutions. The trend is for the compliance intensity to increase exponentially in the next 5 years, with the requirement to document evidence of knowing client behavior at a much deeper level than ever before.


Over the last few years, the area of behavioral finance has moved from a research discussion to practical reality. Now, a behavioral finance approach can be implemented and if done properly it will provide a behavioral matching solution to the tense problems of building relationships and providing compliant offerings.

Hugh Massie

Hugh Massie - Chairman and CEO of DNA Behavior International

As an Identity Trailblazer and Behavioral Finance Insights Pioneer, Hugh Massie empowers advisers, business leaders, families and individuals to unlock their identity for accelerating dramatic change and discover how unknown behaviors which intensify through un-managed differences, money attitudes, pressure and emotions - derail performance.

Hugh helps advisers, leaders, families, and individuals adopt an “understanding people before numbers” approach to making Behaviorally SMART decisions based on their identity, thus customizing experiences for accelerating human performance.

Hugh’s real-world practical applications of behavioral insights and the mastery of the energy of money, blended with strong financial skills, gives him the unique capability to design a wide variety of universally applicable human performance apps. The tech Hugh has developed with his team benefits 1.5 million+ people annually in 125 countries & 11 languages.)

5464 replies
    best hosting says:

    This is very interesting, You are a very skilled blogger.
    I have joined your feed and look forward to seeking more of your excellent post.
    Also, I have shared your web site in my social networks!

    adreamoftrains content hosting says:

    Good day! Do you know if they make any plugins to
    help with SEO? I’m trying to get my blog to rank for some targeted keywords but I’m not seeing very good results.
    If you know of any please share. Many thanks! adreamoftrains
    web host

    Joeann Bourke says:

    I simply want to tell you that I am just beginner to weblog and certainly liked this page. Probably I’m planning to bookmark your site . You definitely have terrific writings. Kudos for sharing with us your website page.

    web host says:

    Aw, this was an exceptionally good post. Finding the time and actual
    effort to create a great article… but what can I say… I put things off a whole lot and never seem to get anything

    Maximo Durette says:

    I simply want to mention I am new to blogging and honestly savored your website. Likely I’m likely to bookmark your site . You surely have terrific stories. Many thanks for revealing your blog site.

    SueSooms says:

    [url=]wellbutrin 100 mg tablet[/url] [url=]rx albendazole[/url] [url=]motilium 100 mg[/url] [url=]lipitor sales[/url] [url=]triamterene 50 mg capsules[/url] [url=]plavix canada[/url] [url=]stromectol tablets for humans[/url] [url=]cleocin hcl used treat[/url] [url=]elimite online[/url] [url=]vermox usa[/url]

    Justin Hamparian says:

    Hey there! I’ve been reading your weblog for some time now and finally got the courage to go ahead and give you a shout out from Austin Tx! Just wanted to mention keep up the excellent work!

    alcohol and viagra interaction says:

    Oh my goodness! an impressive write-up man. Thanks However I am experiencing concern with ur rss. Don?t know why Unable to sign up for it. Is there any individual getting similar rss trouble? Any person that knows kindly respond. Thnkx

    cheap flights says:

    Thanks for a marvelous posting! I genuinely enjoyed reading it, you are a great
    author. I will be sure to bookmark your blog and will come back someday.
    I want to encourage you continue your great writing,
    have a nice day! cheap flights y2yxvvfw

    Technology says:

    Shop; Unique Functions. Simple Product Layouts. Post with review. Advanced Product Layout. Best conversion pages. Frontend Search · Listing example …

    Jewel Withfield says:

    Woah! I’m really enjoying the template/theme of this website. It’s simple, yet effective. A lot of times it’s difficult to get that “perfect balance” between usability and visual appearance. I must say that you’ve done a awesome job with this. Also, the blog loads super fast for me on Firefox. Superb Blog!

    cheap flights says:

    Does your blog have a contact page? I’m having a tough time locating it but, I’d like to send you an e-mail.
    I’ve got some ideas for your blog you might be interested in hearing.
    Either way, great blog and I look forward to seeing it grow over time.

    31muvXS cheap flights

    cbd oil cerebral palsy says:

    An interesting discussion deserves comment. I assume that you should create a lot more on this subject, it could not be a forbidden subject however generally people are insufficient to speak on such topics. To the following. Thanks

    cuckold phone chat says:

    Good day! I could have sworn I’ve been to this site before but after reading through some of the post I realized it’s new to me. Anyhow, I’m definitely glad I found it and I’ll be bookmarking and checking back often!

    phim xxx says:

    This is very fascinating, You are an overly professional blogger.
    I’ve joined your feed and stay up for in search of more of your wonderful post.
    Additionally, I’ve shared your website in my social networks

    hd porn xvideos says:

    Hello, i read your blog from time to time and i own a similar one and i was just wondering if you get a lot of spam responses? If so how do you reduce it, any plugin or anything you can advise? I get so much lately it’s driving me crazy so any assistance is very much appreciated. sex angialand

    phim sex dkrs says:

    You can certainly see your enthusiasm within the
    work you write. The world hopes for even more passionate writers like you who are not afraid to mention how they believe.
    At all times follow your heart.

    check this link right here now says:

    An outstanding share, I just provided this onto a coworker who was doing a little analysis on this. And also he in fact bought me morning meal due to the fact that I discovered it for him. smile. So let me rephrase that: Thnx for the reward! But yeah Thnkx for investing the moment to discuss this, I really feel highly regarding it as well as like finding out more on this subject. Preferably, as you come to be experience, would you mind updating your blog with even more details? It is extremely practical for me. Large thumb up for this blog post!