Using Befi to Build Trust and Manage Investor Behavior

To build high-trust client relationships, the demonstration of one’s technical skills is nowhere near enough. This is because the demonstrated ability of the advisor is about the past. Yet, the decision to trust is primarily about the future – what the advisor will do next. Will the advisor understand me? Will the advisor have my best interests at heart? Will the advisor care for me and be honest with me? These are the kinds of questions clients might ask themselves, if not consciously then non-consciously. The objective of this short course is to equip advisors with the behavioral knowledge to be able to elicit positive responses, build trust, and manage investor behavior with confidence.

Program Learning Objectives 

• Describe the mental processes clients rely on to make risky decisions and learn practical, evidence-based methods to help improve them
• Instill correct beliefs, especially among members of non-expert groups, in a way that does not jeopardize the client relationship
• Explain how personality types not only influence personal finance outcomes, but also predict the communication style and content that are most conducive to behavior change
• Describe the importance of trust for attracting and retaining clients and learn what one must do to actively build trust
• Identify the behavioral obstacles that sometimes prevent people from being the ethical individuals they say they want to be

Herman Brodie is the founding director of Prospecta Limited. He is a specialist in behavioral economics, an accomplished speaker and a trainer of decision-makers. Brodie is the author of The Trust Mandate: The behavioural science behind how asset managers REALLY win and keep clients (2018, Harriman House). He also co-wrote and teaches the professional investment course, A Practical History of Financial Markets.