"Beyond serving as traditional risk tolerance surveys, psychometric assessments can also help advisors to understand a client’s communication style, personality, and saving and spending behaviors more objectively and at a deeper level than their own subjective judgment (which can be fraught with biases and sometimes even knowledge gaps of the client’s personal circumstances)."

"From the broader industry perspective, DataPoints is becoming an increasingly active player in the rapidly growing AdvisorTech Map category of “Behavioral Assessments” that go beyond pure risk tolerance to understand a client’s broader financial psychology..."

Financial planning firms are increasingly seeing the value in having financial psychology experts and tools as part of their practice. Dr. Sarah Fallaw is quoted in the article discussing the importance of financial psychology to clients achieving their goals.

Financial advisors are so often focused on getting clients to save and invest, and keeping them invested (including and especially through times of market volatility) as a way to add “advisor alpha”, a recent DataPoints study of nearly 1,600 investors who are actual clients of financial advisors provides a positive affirmation of these client outcomes

DataPoints released its first quarterly client financial psychology report brief, the Client FinPsych Report. This quarter’s report focuses on the investing-related attitudes of nearly 1,600 financial planning clients spanning over 140 financial planning firms in the United States.