Financial dna in action market mood for advisors

www.financialdna.com Copyright © 2001-2015 DNA Behavior International

Financial DNA in Ac1on Market Mood™ for Advisors

www.finacialdna.com


Clients Will React Differently to the Same Market Events


Financial DNA® = Financial Personality

Advisor Client CommunicaAon

Behavioral Biases

Financial Personality

Risk Profile


Our CompeAAon Leaves you in the Dark

Your ideal client How to Communicate

Email, Phone, or Mee1ng? + more

Risk Profile

Loss Aversion PaGern Bias Newness Bias

Over Confidence + more

Hard Wired

Behavior


Source: The 93.6% Ques1on of Financial Advisors, Meir Statman, 2000

93.6% 6.4%

personality style emotions passions

reaction

excitement

opportunism

Communication preferences

listening fear optimism

anxiety past experience Investments

speculation confidence

PorMolio or Behavioral Management?

93.6%

of financial planning is Behavioral Management


Sources: (1)The Advisors Alpha: PuZng a Value on Your Value, Vanguard 2015 (2) Modelling based on Schwab RIA Survey 2015, Advisor Impact UK Research 2012

Value ProposiAon of a Behavioral Approach

Client Value:

150bps1 per year on AUM

Firm ROI Value:

50x2 ++ from increased referrals, reten1on and share

of wallet


Do You Need a Quicker and More Reliable Method to Predict How Your Clients Will React to Life, Business and Market Events?

CommunicaAon DNA Communica1on and Learning Style Discovery (2 to 5 mins)

Financial DNA Natural Behavior Discovery (15 to 20 mins)


Financial DNA Client Discovery CompleAon Process

Advisory Staff Creates New Client Account in Admin System

Invita1on email sent to the client

Client enters in the username and password provided in the email and logs into the Admin System.

Client completes 46 Natural Behavior Forced Choice ques1ons (taking 15 to 20 mins)

Client receives their desired report and Advisor is no1fied to access from the DNA Admin System


46 QuesAon Natural Behavior Discovery Process (15 to 20 mins)


Financial DNA Reports – Financial Personality Insights


RelaAonship Orientated

Results

Orie

ntated

Fast Paced

Moves Carefully

•  Consolidated View •  Over Trading •  OpAmism Bias •  Risk Taker

•  Spender •  Herd Follower •  InsAncAve •  Status Quo

•  Risk Aversion •  Loss Aversion •  Fear of Regret •  DisposiAon Effect

•  Saver •  Mental AccounAng •  Pa[ern Bias •  Benchmark Focus

Customized CommunicaAons and Unique Style Matrix Including Behavioral Biases and Natural Behavior


How Will You Manage Client EmoAons in VolaAle Markets?


Financial DNA Market MoodTM For Real Time Behavioral Management


Market Mood Firm Dashboard


Client / Prospect Completes CDNA and FDNA through the

Advisor’s Custom URL DNA Behavior System

Advisor’s Custom URL for CDNA/ FDNA

Comple1on

DNA Data available real Ame in CRM and Financial Planning

Sohware

CDNA and FDNA Natural Behavior

Reports Available to advisors:

Advisor/Team Sees DNA Insights and Scripts to Customize Interac1ons for Increasing Client Engagement

Review Data to Monitor Suitability Compliance

Behavioral IPS:

How Advisors are Using Financial DNA®


How DNA Behavior Can Help Your Firm?

DNA Discovery Process

Financial DNA Financial Personality

Management Systems

Matching Advisory Teams to Clients and SoluAons Offered

Grow Engaged Clients and Advisory

Teams

DNA Training

DNA Knowledge Center

DNA Technology Systems

Behavior Drives Financial Planning Performance

Advisory Teams

Clients

$


Changing the Behavioral Finance Paradigm with Financial DNA

TradiAonal Paradigm Financial DNA HolisAc Approach

New GeneraAon of Financial Personality Discovery and Performance Measurement

Singular Risk Profiling

Holis1c Financial Personality Discovery based on Natural Ins1nc1ve Behavior

Measurement of 16 Behavioral Finance Biases, Risk Propensity and Tolerance, Porjolio Grouping 1 to 7

Sta1c Reports Market Mood Dashboard for Real Time Behavioral Management to Markets

N/A Customized Communica1on Keys and Ac1on Steps

N/A Advisor Client Group Repor1ng

IPS and Behavioral Porjolio Models

Situa1onal Ques1ons and Intelligence, Experience Bias Validated Psychometric Analysis

Basic Stand-‐Alone Plajorm Powerful technology integra1on with customized repor1ng and branding


ROI Indicator Metric

Financial DNA Investment $2995 per year/primary advisor

Cost/client per year $26

Discount on Financial DNA at Retail A La Carte Rates 77%

Client Value of Behavioral Coaching 150bps per client/year on AUM

Advisory Firm ROI ObjecAves:

Revenue Increase over 4 years +100%

No of Engaged Clients Increase from 15% +15%

Annual Client Value Increase +10%

ROI -‐ Year 1 51 1mes

ROI – Year 2 68 1mes

The ROI of ImplemenAng Financial DNA for an Average Firm


Enhanced Financial DNA Deliverables

CerAfied Wealth Mentor $450 per month Behavioral Finance Package + FDNA Wealth Mentoring Reports + BDNA Natural Behavior Reports for Team

FDNA Behavioral Finance Package $270 per month

All CDNA & FDNA Natural Behavior Summary Reports + Market Mood + Online Training & Tools + Ongoing Seminars

FDNA Introductory Package $135 per month Natural Behavior Summary Report


For more informa1on about Financial DNA and to complete a trial: Contact: DNA Behavior Interna1onal 5901-‐A Peachtree Dunwoody Rd Suite 375 Atlanta, GA 30328 (770) 274-‐0311

[email protected] www.financialdna.com `

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Financial dna in action market mood for advisors