Don’t Reinvent Tech; Just Add Behavioral Power

– First Published on Nasdaq –

People are complicated. Some tell you their life story in the first few minutes. Others take time – and deep questioning – to reveal even the smallest details.

Financial advisors know that, around the emotional subject of money, gaining insight into clients’ financial personality is hard. But it doesn’t need to be. No matter how complicated – and different – each person is.

Knowing your clients at a deeper level and having real-time access to innate client behaviors and decision-making inclinations puts advisors in a powerful stance. Ready to deliver top-flight service – and results.

How will a client react to market movements? What are their biases? How do they consider and deal with risk? And what are their spending habits? Clients can tell you about themselves, and you can subjectively observe, but what if you had validated, objective client data built into systems on which you rely?

You’ve got tech; add #behaviortech

The solution is part of the move toward greater use of behavioral science. Financial advisors (and their clients) are coming to the realization that bona fide behavioral insights improve the effectiveness of financial advice – communication, service quality and outcomes.

Layering a behavioral data-gathering addition into your existing tech stack is easier than you may think. Hint: You don’t have to reinvent the wheel. Even if you don’t know what an API is, for instance, your IT people do. Imagine: A plug-in that adds behavioral info to the tech you already have.

This addition makes it possible for financial advisors to identify, engage and deliver client solutions in real time, leveraging data that informs financial planning from end to end. A behavioral tech stack combines customer engagement technology and behavioral insight data to inform client engagement. It enables the knowing-me-knowing-you element that creates trust from openness and transparency.

Plugging in personality

Client data collected through a quick, simple behavioral discovery informs the advisory process in significant ways:

  • Defining financial personality.
  • Advisor/client matching.
  • Individual client financial journey needs.
  • Quality life goal analytics.
  • Real-time access to client behavior data.
  • Client engagement via more effective communication.
  • Insights to inform marketing.
  • Eliminates information silos between client support teams.

Every financial advisor should have access to interactive business intelligence tools. And that includes but goes far beyond client EQ, to include a full range of behavioral insights. (In some cases, as many as 500-plus such insights.) That’s the power of modifying your tech stack to include the behavior module.

Be(havior) on the cutting edge

Imagine: In advance of every client meeting, whether face to face, on social media, conferencing platforms or the phone, an advisor could, at the click of a button, be able to deploy dashboards and personalized information to respond to specific client wants and needs. (Even wants and needs they may not know they have or cannot verbalize; again, you’ll be tapping into innate behavioral info.)

Best: The behavioral tech stack is so integrated into other advisor systems and platforms that client info and prompts appear as needed, with the advisor not even having to push that proverbial button. As an example, a pop-up might remind you the client you’re about to meet with has difficultly following set procedures and offers a checklist of ways you can simplify processes to ensure they stay on track.

This approach creates an experience tailored to individual client needs. Moreover, it’s the way of the future.

Leon Morales

Leon Morales

Chief Relationship Accelerator

Human Behavior Advisor, Human Capital Management, Customer Experience Specialist

Leon Morales is a builder of successful people driven organizations. With a deep conviction that organizational success is only achieved when leadership really understands each employee, Leon is certified in the DNA Behavior. Method and Birkman Method of personality assessment and has crafted his professional career around high-impact consultative roles. These include serving as Business Development Principal and Leadership Practice Principal for Innovar Collective, LLC and in various corporate leadership roles during his 17-year tenure with Cox Communications.