Financial advisors are expected to be proficient in aspects of behavioral finance and often find themselves serving as psychologists of sorts. Being so is beneficial to advisors and clients alike. But there is a lot to learn when it comes to the psychology of financial planning.
A financial advisor can have all the technical knowledge available, but they are of little value if they cannot communicate, show empathy, listen, and practice situational awareness during client interactions. Advisors must also understand various attitudes, intrinsic values, and inherent biases of clients, and how to use effective communication techniques to build trust and commitment.
Are you acting and reacting appropriately when it comes to your client communications? In the gallery above are eight soft skills every advisor should work on, according to “The Psychology of Financial Planning,” by the Certified Financial Board of Standards Inc.