Dynamic Planner, the UK’s leading digital financial advice platform, has launched a new feature, Financial Personality Insights, designed to provide advisers with a deeper understanding of clients’ behaviours, emotions and thoughts around financial risk.
This enhancement builds on the platform’s established Attitude to Risk (ATR) questionnaire, offering more personalised advice capabilities.
The feature was developed by Dr Louis Williams, Dynamic Planner’s head of psychology and behavioural insights.
It enriches the analysis of the psychometric dimensions that underpin the ATR questionnaire, originally created in collaboration with Henley Business School at the University of Reading.
Financial Personality Insights goes beyond identifying a client’s risk profile by exploring the personality traits that shape their approach to risk.
It aligns with Consumer Duty regulations by offering evidence to support suitable risk-profile selections and helping advisers explain the trade-offs between risk and reward.
Additionally, it highlights opportunities for client coaching and enhances communication by tailoring advice to individual needs.
The tool is grounded in financial decision-making psychology and applies robust psychometric principles. It examines five key personality dimensions:
- Risk-taking identity: How clients perceive themselves when taking risks and what motivates their behaviour.
- Fear-of-missing-out (FOMO): Clients’ concerns about missing profitable opportunities.
- Preference for certainty: The tendency to favour secure gains over potentially higher but riskier returns.
- Tolerance of uncertainty: The ability to manage investment volatility.
- Emotion towards taking risk: Clients’ emotional responses, whether positive or negative, to financial risk.
By using data from the ATR questionnaire, the feature provides advisers with a detailed breakdown of a client’s financial personality.
This includes tailored insights and actionable tips to foster more meaningful conversations and guide decision-making.
Dr Louis Williams commented: “Our newly launched Financial Personality Insights is designed to enrich the output from our market leading psychometric Attitude to Risk (ATR) questionnaire.
“Its key aim being to help frame conversations that resonate with clients and assist with selecting the right risk profile in line with the Consumer Duty.
“Advisers are now able to more fully explore client behaviours, thoughts and feelings towards taking financial risk than ever before.”
Dynamic Planner supports 45% of UK investment advice firms, reviews over £100bn in client assets quarterly and profiles 1,900 investment solutions worth £280bn.
The addition of Financial Personality Insights aims to further solidify its position as the market leader in digital financial planning.
What a load of rubbish,