Targeted support may 'psychologically backfire' for advisers

Clients ‘react very emotionally’ when categorised

Sahar Nazir
clock • 1 min read

Offering targeted support in financial advice has the potential to psychologically backfire, warned Behaviour Consulting psychologist Phil Davies.

Speaking today (21 May) on a panel at Altus Consulting's Advice Guidance Boundary Review: Solving the Investments Crisis conference, Davies said advisers' clients tend to "react very emotionally" when they find out they have been put in a category. "People do not want to be segmented. You get comfort from being in a tribe, but not in a ‘certain' tribe," delegates heard. "Someone told me earlier that they received financial advice and were told they are the type of person expected to receive that advice – and they said that is not who they are," he said. Furthermore, Davies said: "T...

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