The Human Side of Money

Neil Bage is highly renowned in the fields of financial services and behavioral science for his ability to bridge scientific theory with real-world understanding, particularly when it comes to human behavior in light of financial health and well-being. He’s the co-founder of Be-IQ, a multi-award-winning behavioral insights company that focuses on providing research and tools on behavioral finance for financial advisors and planners around the world. As he puts it, his mission is to bring “behavior to life” for financial advisors. We discuss: The “achilles heel” of our industry (Hint: it’s not a lack of technical knowledge) Why the future of financial planning will have the human as the centerpiece The importance of getting clients or prospects into a calm, peaceful state prior to a meeting and specific ways to do it The story of an advisor who used the tools from Be-IQ to finally breakthrough to a client after 15 years The “Empathy Gap” – What it is and why you should be aware of it in every meeting What Neil calls the “transformational benefits” for advisors who bring behavior to life To sign up for Brendan’s monthly newsletter focused on the human side of advice → Click Here Connect with Brendan Frazier:  RFG Advisory LinkedIn: Brendan Frazier X: @jbrendanfrazier Connect with Guest:  Be-IQ X: @neilbage LinkedIn: Neil Bage About our Guest:  Neil is the Co-Founder of Shaping Wealth, a learning technology platform transforming the human experience of money. He has served as a Chief Behavioural Officer in the UK and was the CEO and Founder of a multi-award-winning behavioral insights business. Neil has spent almost two decades researching human behavior as it relates to money, working closely with 6 Behavioural Science Professors across 4 Russell Group Universities. Over that time he has engaged with over 20,000 real people exploring multiple aspects of their behavior and relationship with money.

Andy Hart, founder of Maven Adviser and the behavioral finance conference Humans Under Management, emphasizes the importance of managing clients as humans rather than just assets. He discusses the dangers of jargon and shares specific strategies for enhancing client communication, including labeling techniques that prompt optimal behavior. Hart argues for prioritizing emotional intelligence in financial advising, revealing how understanding clients' future selves can lead to improved outcomes. His insights provide a refreshing take on integrating behavioral finance in practice.

As an expert in applied decision science and behavioral finance, Greg gives one example after another on how you can design your practice, your process, and your conversations for optimal behavior and better outcomes. Greg Davies is the head of behavior at Oxford Risk, where he focuses on improving financial decision-making through the use of behavioral science, and is the co-author of the book Behavioral Investment Management.  Greg works with advisors and planners around the world on how to apply behavioral finance in order to make optimal decisions in the face of complexity, uncertainty, and behavioral biases. We discuss: The two types of financial plans: One for technical knowledge and one for governing behavior How the implementation of technology unlocks your ability to give better advice AND focus more on the human side of the relationship The importance of nailing the risk assessment with a focus on anxiety-adjusted returns instead of risk-adjusted returns The three components of risk assessment: Risk Tolerance, Risk Capacity, and Emotional Capacity and how to incorporate them all Where he thinks behavioral finance will be within the industry in 2030 To sign up for Brendan’s monthly newsletter focused on the human side of advice → Click Here Connect with Brendan Frazier:  RFG Advisory LinkedIn: Brendan Frazier X:@jbrendanfrazier Connect with Greg Davies: LinkedIn: Greg Davies X: Greg Davies About our Guest:  Greg is a specialist in applied behavioral finance, decision science, sustainable investing, and financial well-being. He founded the banking world’s first behavioral finance team at Barclays in 2006, which he led for a decade. In 2017 he joined Oxford Risk to lead the development of behavioral software to help people make the best possible financial decisions. Greg holds a PhD in Behavioural Decision Theory from Cambridge; has held academic affiliations at UCL, LSE, Imperial, and Oxford; and is the author of Behavioral Investment Management. Greg is Chair of Sound and Music, the UK’s national organization for new music; and creator of Open Outcry, a ‘reality opera’ that premiered in London in 2012, creating live performances from a functioning trading floor. He is also a frequent speaker and runs CPD-accredited Behavioural Wine Tasting events with Master of Wine John Downes: A unique interactive event combining decision science, live psychology experiment … and wine.

After a serendipitous sequence of events, we’ve officially changed the name to The Human Side of Money. New name. Same look. Same mission. The sole purpose of this podcast is to be the your go-to resource for applying behavioral finance into your practice and mastering the human side of money!

In an industry where 99% of the training, certifications, designations, and conferences are geared towards the technical side of the relationship, high-quality, top-notch resources on applying behavioral finance in your practice are sparse. In this episode, Brendan answers the most common question posed by advisors and planners when it comes to the human side of money: “How do I develop this skill set?”  The answer lies in a 3-step process: Spark Innovation from Outside Perspectives: We need to look to experts in fields like behavior, psychology, communication, and more. Channel Outside Perspective Through Experience: We can learn from those outside of our industry, but ultimately, we need to have a community of other advisors and planners to collaborate with. Refine Through Practice: Like any skill, you’ll never get the results you want without practice. To sign up for Brendan’s monthly newsletter focused on the human side of advice → Click Here Connect with Brendan Frazier:  RFG Advisory LinkedIn: Brendan Frazier X:@jbrendanfrazier

The value and future of financial advice is currently facing a crossroads as it shifts towards blending technical advice with the ability to change behavior. In this episode, Brendan tells the story of a client meeting he observed that helped shine a light on the forces causing this shift and why most advisors and advisory businesses simply aren’t equipped to evolve and take advantage. We discuss: Why the future of advice will be more focused on guiding clients through the process and changing behavior for the better How heart bypass surgeries, entrepreneurs, obesity, and marriages teach us that providing information and advice will never be a sustainable value proposition How pairing technical expertise and the human side of money provides massive benefits to your clients and your business The immense gap that exists between the skill set advisors possess and the skill set they need to evolve with this shift in value towards the human side of money What advisors can learn from hostage negotiators and therapists in this quest for a new skill set To sign up for Brendan’s monthly newsletter focused on the human side of advice → Click Here Connect with Brendan Frazier:  RFG Advisory LinkedIn: Brendan Frazier X:@jbrendanfrazier