Emotion and psychology play a massive role in influencing our decisions, causing us to behave in unpredictable or irrational ways. Behavioral finance (BeFi) is a relatively new field that seeks to combine behavioral and cognitive psychological theory with conventional economics and finance to provide explanations for why people make irrational financial decisions.
You can also read more on this subject in “Game Changer – Why BeFi Will Transform What You Do” by Warren Cormier, recently published in Plan Sponsor.
Who can benefit from this?
Marketing Executives – BeFi provides a clear understanding on buyer behavior and how best to understand and shape target market behavior, with connections to how customers would relate to product, placement and pricing, including messaging.
Financial Advisors – BeFi provides a grounded approach to understanding, shaping and managing your, and your clients’ behaviors, ensuring best-in-class practices to instill better money management practices and trusting relationships,
Institutional Investors (especially Defined Benefits and Defined Contribution practitioners) – BeFi provides key aspects of participant and investor behavior so you can tailor programs to shape behavior. Helps you to enhance your standing as a “Thought Leader,” in the industry, further enhancing your career goals.
Individual Investors – BeFi provides a better understanding of the pitfalls of irrational behaviors so we may all benefit from avoiding and shaping our own behaviors for better success in investment, savings and profitability.
BeFi is also a highly intellectual exercise that can catapult your personal financial management, your career aspirations, and your reputation as a thought leader in your respective industry.