Hortz: What new tools or enhancements are you planning for your tech platform that can further help advisors more strategically engage their clients?
Morales: In our DNA Ecosystem, we have a network of partners that can offer behavioral apps to enhance the performance of managing differences in personal and business engagements. Our goal is to have 50 ecosystem partners in the DNA Network all having a unique client experience.
As an example, we have one partner that has a meeting app which allows a screen-pop of key behavioral information showing strengths/struggles for the person you are engaging. This ensures you are focused on those client behavioral issues and goals during the meeting. Another application is a recruiting firm for advisor and staff hiring that ensures the person is the right fit for the role and firm culture.
Our vision is to enable over one billion people to know in real-time how best to relate to and deal with one another on their personal terms - from the first interaction and even if they are not in close proximity as in today’s new virtual environment.
Hortz: Based on all your behavioral research knowledge and practical cross-industry application to real-world business needs, what best advice can you give financial professionals about incorporating behavioral science into their business models and operations?
Morales: There are a number of key business benefits for advisors in using a behavioral science approach. One was actually measured and quantified in a major Vanguard Study in 2016. The study determined that an advisor can deliver 150 bps of net return above what the client could do themselves by behavioral coaching and managing the client’s behavioral biases.
Another important fact is that a deeper “Know Your Client” threshold is increasingly becoming a heightened standard in the industry than was previously required. Deeper behavioral understanding means that you will be able to engage with the client, the spouse and intergenerational family connections in more effective ways. Our research determined that it is also a great time saver making meetings and conversations 40% more effective and efficient by knowing what and when to key in on most important topics for a client. Using technology to embed this behavioral process into your business just brings further efficiency and effectiveness to client relationships.
This all leads to the most important element crucial for advisors which is building Trust. Connecting deeply with a client on their terms is vital to having a long-term client relationship. The bottom-line is that building the behavioral element into an advisory practice is a win-win-win with improved outcomes for the advisor, the firm and the client.
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