To provide the best experiences, we use technologies like cookies to store and/or access device information. Consenting to these technologies will allow us to process data such as browsing behavior or unique IDs on this site. Not consenting or withdrawing consent, may adversely affect certain features and functions.
The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
The technical storage or access that is used exclusively for statistical purposes.
The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
“Loss Aversion” is a behavioural finance bias that which poses a giant problem amid market craziness for financial services providers, fund managers, platforms, networks, digital advisers and others.
💻 It’s a particular issue when customers are navigating the world of personal investment via portal-based financial services offerings, without the reassuring presence of an experienced adviser or other human input.
❓ Why? In short it triggers majorly self-sabotaging behaviour in clients/customers.
❗ This includes over-reacting (or under-reacting) to the information you give to customers/clients, depending on how it is presented. The net result: resentful customers, poor client retention and dwindling profits.
😱 What is it? Loss Aversion is the tendency to prefer avoiding losses to acquiring equivalent gains. It can cause investors to hold on to an investment for too long or not long enough, e.g. rushing to encashment or holding on to dud investments.
📉 Not surprisingly, investors who are highly susceptible to Loss Aversion can be triggered into bad decision making when markets seem “crazy” due to massive political and economic upheaval.
🤝 By integrating Wi-Ai Investor Personality Profiling software into an online process, financial services businesses can get ahead of the curve by identifying customers’ susceptibility to biases such as Loss Aversion and ethically preparing for the moment when their fears are massively triggered by market craziness.
🤚 To find out more, get in touch via [email protected]