And the next bias-based challenge that a Financial Adviser may come across…
Optimism Bias
The clue is in the name!
Optimism is often a good thing. Optimism Bias: less so.
How does this pan out in the field of financial advice or guidance?
If a client is more prone to Optimism Bias they are more likely to believe that they will experience a good outcome than the reality of a situation may suggest.
Essentially Optimism Bias is a mistaken belief that our chances of experiencing negative events are lower and our chances of experiencing a positive event are higher than those of our peers.
For example, this may lead to clients failing to take out suitable insurance or to make sufficient provision for retirement.
But sometimes identifying this bias in clients can be difficult.
Wi-Ai software helps financial services businesses to support their clients in identifying and dealing with this bias and others that may come into play when it comes to financial decision-making.
By offering your clients the ability to test themselves for a range of biases (including Recency Bias) using our bias profiling software, you give your client the ability identify key biases at play.
You and your client get a helpful personalised “Investment Personality Profile Report”. This will help both you and your client gain a vital understanding into their thinking, enabling them to place appropriate trust in your advice process and making them more likely to make the right financial decision for them.
Is this a scenario you have come across when working with clients?
