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Ten years ago, we officially launched our platform at the XYPN 2016 conference in San Diego. If you were there, you remember the big tent! At the time, there were very few firms or tech companies that focused on the behavioral side of financial planning. Most conversations in fintech centered around robo-advisors that were going to take over the industry (spoiler: it didn’t happen).
Psychology & Financial Planning
What has changed since 2016? The psychology of financial planning, or the thoughts, feelings, and behaviors of clients, has become more important to the financial planning process. It has become important to some firms that recognize the need to address the emotional and psychological aspects of their clients’ well-being while working with them. That, of course, is where we have come in for the past 10 years. We provide financial planning experts with scientific, validated tools. These assessments enable advisors to incorporate the psychology of financial planning into their practice while still keeping the advisor front and center. In other words, our tech supports the human relationships within financial planning. Our assessments allow advisors to demonstrate their expertise and knowledge and help firms to quickly and easily understand their clients’ attitudes, beliefs, and values.
Firms Leading the Way on Understanding Clients
Over the years, we have been fortunate to work with firms that are on the leading edge of this new approach to the financial planning relationship. Some of those leading-edge firms shared how they use DataPoints assessments:
- Radix Financial uses the Investor Profile RTQ. This assessment ensures that the focus of client relationships and conversations shifts from investment performance to decisions the client can actually control and think about. Radix values having a valid and reliable assessment to measure a client’s investment personality and risk tolerance.
- WorthyNest® is a firm that helps Christian and Catholic parents build wealth without compromising faith or values. It uses multiple assessments in its onboarding process to quickly get to know prospective clients at the beginning of the relationship. They also use the Investor Profile to help them create an IPS.
- Measuring client attitudes and perspectives in real time is critical to Seed Money Consulting. This firm uses behavioral assessments, including the Building Wealth Assessment (the first test we launched back in 2016). Assessments ensure that Seed Money Consulting can appropriately tailor the strategies it provides to clients.
- Journey Beyond Wealth (JBW) uses the Investor Profile RTQ. This unique assessment helps the JBW team understand how clients view money and to start conversations based on the results. They can also use the results to identify which clients may have a difficult time when markets become volatile.
- Behavioral assessments also help NorthStar Financial Planning provide a personalized experience to its clients. This firm uses our Money Personality and Investor Profile assessments as part of the onboarding process. These assessments help NorthStar planners to get to know clients and standardize the onboarding process quickly.
Our customers recognize the importance of understanding client financial psychology. This includes having an accurate picture of their clients’ thoughts, feelings, and behaviors related to spending, saving, and investing. We’re proud to play a small part in the work they’ve done to help clients achieve financial success. We look forward to the next 10 years and what technology will add to your ability to help your clients build and sustain wealth.
1 thought on “Ten Years Working With Leading-Edge Firms”
Sarah
I’ve only been with you for a few years. I have been consistently impressed by the progress you have made over that period. Adopting AI is another milestone in your decade of innovation in the field of behavioral finance.
Thank you for allowing us to succeed using your innovations – thus far.