The Financial Behavior Report

The flagship report in the Financial DNA lineup is the Financial Behavior Report. This 1-page report provides a quick overview of a client’s style. While the investor experience is configurable on the firm level, most firms opt to share this report with clients. In 1:1 meetings, advisors typically review this with clients using the report itself or the comparison report, which displays 2 people inside one report.

So advisors can easily prepare for client meetings, it’s helpful to know what the components of the Financial Behavior are, which components change from client to client, and which areas are static text. There are primarily 3 components of the report:

  1. Static text everyone sees- which is the same for everyone
  2. How individuals approach investing – here, we cover the financial personality of the client in written form. Nearly every client will have a unique financial personality. The key in this section is the “Keys to adopting a plan”. To make this simple for advisors, we email a copy of this when clients complete their assessment.
  3. 5-scores highlighting the Financial Behavior – this is unique per client. Each client has 5 scores. There are no “good” or “bad” scores in Financial DNA. Use these points to understand your client’s at a deeper level.
The three components of the Financial Behavior Report

Components of the Financial Behavior Report

1

Co-brandable- add your firm’s logo to make it uniquely yours.

2

Curated images for every style. Each unique style group has its picture. (Strategists have a sailboat because they can see goals on the horizon at all times).

3

Description of the client’s unique style. There are ten styles in total. Click to explore them.

4

The importance of Financial DNA and Financial Behavior. This section is the same for all clients.

5

Behavioral Biases: There are 16 in total. Each client is identified with their top two. Click to explore them.

6

This is how you communicate with your clients and customize the experience for them. This is a key component of Financial DNA and we will email you this detail for each client that completes a discovery.

7

Client’s risk appetite: Click here to learn more about risk.

8

Time and energy required for working with this client: Click here to learn more.

9

How financially organized a client is and if they are a saver or spender: Click here to learn more.

10

Ability to set and ambitiously pursue goals: Click here to learn more.

11

Able to effectively recognize and balance their impulses in not making decisions: Click here to learn more.

The 5-Scores: All positives, No negatives

The Financial Behavior Report measures the client’s financial personality 5-scores. It is a strengths-based report, meaning it shows only positives and no negatives for clients. Rest assured, all of the combinations of scores that clients may receive will be described in a positive light in terms of their financial personality.

For instance, the 3rd score “Financial Planning Management” measures how a client is inclined to spend or save. Individuals with high scores will be described as “Saver and follows budgets” and people with low scores will be described as “Desire to spend and appreciates spending freedoms”.

Risk Behavior

Scoring Range: 0-100 Based on Population Percentage

Behavior Description: Comfort with taking higher risks (risk appetite)

Learned Behavior: Could have learned behavior around financial risk – ask about risk outside of financial decisions. For example: “Would you go running with the bulls?”

High Scores (over 70): Risk-taker and tolerant of losses

  • Take bold action
  • Comfortable in uncertain situations
  • Like to see higher rewards for higher risks

Low Scores (under 30): Safely manages risks and able to see the pitfalls

  • Cautious with risk
  • Like to have a contingency plan
  • More comfortable in known situations or after a decision is made

Financial Relationship Management

Scoring Range: 0-100 Based on Population Percentage

Behavior Description: Time and energy required for working with this client

Learned Behavior: Maybe more or less willing to delegate based on past experience. Ask about previous relationships and experiences they have had with other advisors.

High Scores (over 70): Delegates to advisors and relationship-driven

  • Spends time building relationship
  • Cooperative
  • Diplomatic

Low Scores (under 30): Prefers to maintain control of decisions and results-driven

  • Focus on results
  • Prefers to make decisions
  • Self-reliant

Financial Planning Management

Scoring Range: 0-100 Based on Population Percentage

Behavior Description: How financially organized a client is and if they are a saver or spender

Learned Behavior: Maybe more or less precise in financial management

High Scores (over 70): Saver and follows budgets

  • Precise and planned
  • Accurate and detailed
  • Well organized

Low Scores (under 30): Desire to spend and appreciates spending freedoms

  • Spending could be on time or energy as well as money
  • Generalist/Instinctive
  • Prefers spending plan to budget
  • May have learned behavior around saving money or have set up systems to attend to saving without effort

Wealth Building Motivation

Scoring Range: 0-100 Based on Population Percentage

Behavior Description: Ability to set and ambitiously pursue goals

Learned Behavior: Clients may choose more life balance than the natural pursuit of goals or flex to be more driven to achieve important goals.

High Scores (over 70): Pursues goals and is often ambitious

  • Goal-driven
  • Focused on achievement of goals
  • Determined

Low Scores (under 30): Prefers flexible goals and is often okay with a content life

  • Take a more flexible approach to meeting goals
  • Prefer stable environments
  • More patient in getting to their goals

Financial Emotional Intelligence

Scoring Range: 0-100 Based on Population Percentage

Behavior Description: Able to effectively recognize and balance their impulses in not making decisions

Learned Behavior: Awareness of initial reactions to stress allow people to make choices about the response.

High Scores (over 70): Likely to recognize and balance emotional impulses with logic

  • Tend to have an initially logical response to stress
  • Takes rational approach
  • May experience emotions after initial rational response

Low Scores (under 30): Has emotional impulses and makes a spur of moment decisions

  • Tend to have an emotional response to stress initially
  • May have a more rational response after the initial reaction to stress
  • May want to make decisions based on initial emotional reaction