Behavioral finance is an emerging topic in the financial planning sector that has many in the industry wondering how they can best approach the topic with their own clients.
As a recent Financial Planning article points out, “At the leading edge [of behavioral finance] are tools that help clients manage their cognitive biases. Big data, artificial intelligence and even blockchain, to name just a few, will allow firms to create deeper personality profiles of clients and overcome their predispositions.”
While the author admits that there’s no one solution to address all of the cognitive biases clients have, there are solutions that are tackling the issue head-on, including Genivity.
The way that Genivity’s HALO collects health and lifestyle data and generates recommendations based on AI-driven algorithms is of great interest to those in the behavioral finance space. Says former LPL chief Mark Casady, “Technology-driven human assessment will take off as AI takes hold in wealth management.”
To learn more about how AI is driving behavioral finance, read the entire story.