Financial Planning Behavioral Finance

Schwab Advisor Services Partners With Behavioral Finance Firm

News December 13, 2020 at 10:57 AM
Share & Print

Bloomberg photo of Schwab sign (Photo: Bloomberg)

A new integration between Schwab Advisor Services and DNA Behavior International will let advisor clients of both firms access Schwab Advisor Center directly from Financial DNA's platform.

DNA Behavior, which helps financial services firms review behavioral insights in order to build better portfolios, announced the details of its Schwab partnership on Thursday. Other firms that have used DNA Behavior's solutions prior to Schwab include Raymond James and John Hancock, according to DNA Behavior's website.

"Schwab understands the value of behavioral finances research, and we see them as a leading custodial partner in this emerging space," according to Hugh Massie, CEO and chairman of DNA Behavior.

The integration "will help advisors access practical, easy behavioral finance technology directly within the Schwab Advisor Center ecosystem," he said in a statement Thursday.

Assets at Schwab Advisor Services — the firm's RIA channel — totaled $2.55 trillion as of Oct. 31, up 51% from a year ago and 36% from Sept. 30.

In a recent Charles Schwab Investment Management research paper, "BeFi Barometer 2019," produced with Cerulli Associates and the Investments & Wealth Institute, 58% of advisors said they wanted to incorporate behavioral finance into their practices.

"We have almost 20 years of R&D, including third-party validation, and this is just the sort of integration to take advantage of that behavior tech, deploying it within an already powerful platform like Schwab's," according to Massie.

Organizations in financial services and other sectors use DNA's advisor and investor dashboards and application programming interface (API) "to enable mass personalization, distilling human behavior into actionable understanding by building apps," the firm says.

"Our main run of business is working with advisors and firms to really uncover the financial personality of clients," Leon Morales, vice president of DNA Behavior, told ThinkAdvisor when its platform launched in 2016.

Young Professionals
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Related Stories

Should Clients Change Advisors When They Retire? eMoney Set to Launch Premium Client Portal, New Planning Features CFP Board Pivots on 'Perfect Job' Campaign After Backlash The Future of Financial Advice Looks a Lot Like Life Coaching: Daniel Crosby Stop Your Clients From Letting Election Fears Drive Investment Decisions Why Become a Financial Planner?

Resource Center

Can Systematic Risk Be Reduced? link

Guide

Can Systematic Risk Be Reduced?

The Business Model Playbook: Mastering Technology for Firm Success link

Playbook

The Business Model Playbook: Mastering Technology for Firm Success

Harnessing AI to Power Advisor-Client Relationships link

White Paper

Harnessing AI to Power Advisor-Client Relationships