Understanding the psychology of financial decision-making will help you develop stronger relationships, deepen trust, and facilitate a playing field filled with satisfied clients.
Behavioral finance is a field of study that combines the disciplines of psychology and finance to understand better why people make confident financial decisions. While conventional finance models often assume that individuals act rationally and make decisions based on logic and data, the reality is that emotions, biases, and other psychological factors can play a significant role in financial decision-making.