The value proposition of advice is changing, along with this, the nature of what clients expect from advisors and the resources available to advisors are evolving. Understanding the DNA behaviour of an investment decision has become key.
The ability to understand an investor’s behaviour through DNA has continued to increase in value, yet many still do not realise the extent of impact genes have in determining the type of investor a person becomes.
This means that many are also failing to utilise DNA research to improve either their own or client gains. All human beings have inherent behavioural traits that they may or may not be aware of.
For example, in investors a simple one would be that some people are natural risk takers while others are more cautious. While most investing decisions may seem random, each decision, goal, action, or emotion is somewhat predictable via DNA.
Researching DNA behaviour unlocks the ability to look at the core behavioural traits that make up a human in an aggregate way. DNA Behaviour believe that, if an investor can see the holistic overview of their risk spending and goal drive behaviours, then they can become self-empowered to make smarter decisions on their wealth and accelerate their returns.
For instance, by leveraging this understanding, an investor can prevent things like optimism bias and overconfidence clouding their judgements. Taking the time to understand your DNA is an investment in yourself, one that could pay dividends for the rest of your life.
DNA Behaviour surveys take between 10-45 minutes, yet can increase your wealth and permanently change your investment approach for the better.
Improve your relationship with clients
Learning about a client’s DNA also unlocks a greater understanding of their financial behaviour – how they make decisions around money, what their communication style is, how they react to market events, and what motivates them to achieve their goals.
Getting to know a client better is never a bad decision and arguably, to provide valuable financial advice, an advisor must be able to fully understand their client. When clients entrust their money to an advisor they make an emotional commitment as well as a financial one.
If an advisor discusses their DNA behaviour with them, a client can feel relief knowing the investment strategy chosen is most suitable for them. In return, deeper client engagement and increased satisfaction will ultimately drive share of wallet and word of mouth referrals back to the advisor [oxford risk], making it beneficial to both parties.
DNA is an avenue to improve efficiency and streamline human effort where it is most valuable. It also, enables you to think beyond owning a good investment portfolio, towards what it means to be a good investor.