Dynamic Planner has launched a new feature as part of its Attitude to Risk (ATR) questionnaire, designed to provide advisers with a deeper understanding of their client behaviours, thoughts and emotions around financial risk.
Developed by Dr Louis Williams, Dynamic Planner’s head of psychology and behavioural insights, Financial Personality Insights provides analysis of the core dimensions that underpin the firm’s ATR questionnaire.
It goes beyond calculating a client’s risk profile to fully understanding what characteristics of a client’s personality is driving their attitude to risk. Dynamic Planner said it will assist with selecting a suitable risk profile and the most appropriate Dynamic Planner tools to use when explaining the trade-offs between risk and reward.
The new tool uses the same psychometric principles as the ATR questionnaire, measuring five personality dimensions. These include risk-taking identity; fear of missing out; preference for certainty; tolerance of uncertainty and emotion towards taking risk.
Dr Louis Williams, head of psychology and behavioural insights at Dynamic Planner, said: “Our newly launched Financial Personality Insights is designed to enrich the output from our Attitude to Risk questionnaire. Its key aim being to help frame conversations that resonate with clients and assist with selecting the right risk profile in line with Consumer Duty. Advisers are now able to more fully explore client behaviours, thoughts and feelings towards taking financial risk than ever before.”
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