Behavioral finance is the study of the effects that emotions and biases have on the decision making of investors. As of 2020, more than half of financial advisors worldwide declared that incorporating behavioral finance in their practice helped keeping clients invested during market volatility. Moreover, 48 percent of the respondents increased client retention thanks to behavioral finance.
Main benefits of incorporating behavioral finance into financial advisors' practice worldwide 2019 and 2020
The source adds the following information: "Respondents were members of IWI and diversified across business models, including wirehouses, registered investment advisors, and national and regional broker/dealers."
This question was phrased by the source as follows: "“Given the increased market volatility over the past several months, what have been the greatest impacts of incorporating behavioral finance techniques/programs into your practice?"
Respondents were allowed to select up to three responses.
*Not included in the 2019 survey.
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Charles Schwab Corporation. (September 8, 2020). Main benefits of incorporating behavioral finance into financial advisors' practice worldwide 2019 and 2020 [Graph]. In Statista. Retrieved November 13, 2024, from https://www.statista.com/statistics/1249682/main-benefits-of-behavioral-finance-worldwide/
Charles Schwab Corporation. "Main benefits of incorporating behavioral finance into financial advisors' practice worldwide 2019 and 2020." Chart. September 8, 2020. Statista. Accessed November 13, 2024. https://www.statista.com/statistics/1249682/main-benefits-of-behavioral-finance-worldwide/
Charles Schwab Corporation. (2020). Main benefits of incorporating behavioral finance into financial advisors' practice worldwide 2019 and 2020. Statista. Statista Inc.. Accessed: November 13, 2024. https://www.statista.com/statistics/1249682/main-benefits-of-behavioral-finance-worldwide/
Charles Schwab Corporation. "Main Benefits of Incorporating Behavioral Finance into Financial Advisors' Practice Worldwide 2019 and 2020." Statista, Statista Inc., 8 Sep 2020, https://www.statista.com/statistics/1249682/main-benefits-of-behavioral-finance-worldwide/
Charles Schwab Corporation, Main benefits of incorporating behavioral finance into financial advisors' practice worldwide 2019 and 2020 Statista, https://www.statista.com/statistics/1249682/main-benefits-of-behavioral-finance-worldwide/ (last visited November 13, 2024)
Main benefits of incorporating behavioral finance into financial advisors' practice worldwide 2019 and 2020 [Graph], Charles Schwab Corporation, September 8, 2020. [Online]. Available: https://www.statista.com/statistics/1249682/main-benefits-of-behavioral-finance-worldwide/
