Cognitive Processes in Decision-Making and Risk Taking
Until recently, behavioral finance has focused on the limitations and biases in how people make financial decisions, and on how these limitations affect market outcomes. For financial professionals, identifying and successfully dealing with these psychological tendencies is important.
FinPsy® has extensive experience in psychological decision-making biases, and in the power of cognitive framing and nudging. For example, when it comes to investment decision-making, small changes in how available decision alternatives are presented can result in dramatic changes in people’s preferences.
Personality, Values, Styles, Preferences
Going beyond “traditional” behavioral finance, FinPsy® has more to offer in order to support financial companies. For example, surveys and assessments provide systematic insight into behavioral make-up, as well as into the different types of individual investors and customer sub-groups.
This knowledge lays the foundation for a far more informed selection of suitable investments than decisions based on gut feeling and intuition alone. Recognizing your customers’ behavioral characteristics and differences allows you to support them as the investor they truly are. Identifying investments that are compatible with their preferences, values, and personality enhances trust and investment satisfaction.
Professional decision makers and financial customers are not always aware of the motives involved in their decisions and behavior.
FinPsy® has expertise with advanced psychometric measurements that offer a window into both conscious and unconscious motivations behind financial and investment decisions.
Teams and Organizations
Finally, financial decision makers rarely operate in a state of isolation; they are almost always a part of a team or an organization. They communicate, influence, and inspire one another; they simultaneously lead and are being led by others.
FinPsy® provides professional expertise on group processes, team dynamics, motivation, leadership, creativity, and organizational behavior.