We’re big believers in the merits of behavioral finance here at 401k Specialist, so we were intrigued to see the introduction today of the first advisor-focused behavioral finance designation from an accredited college or university.
The College for Financial Planning—a Kaplan Company, announced its new professional designation, the Accredited Behavioral Finance Professional program (ABFP) in conjunction with results of a new study showing that 90% of financial professionals believe that behavioral finance training would help them build their client base and deepen relationships with existing clients.
“The Accredited Behavioral Finance Professional program serves to enhance advisors’ emotional competencies, client interactions, and financial planning advice by bringing together two important elements of learning,” said David Mannaioni, Dean of Academic Programs at the Centennial, Colo.-based College for Financial Planning. “The College brings together comprehensive research and trends from leaders and experts in the area of behavioral finance and hands-on classroom activities that enable advisors to translate theory into practice and start using new skills with clients from day one.”
Behavioral finance is a field of study exploring the influence of psychology on the behavior of investors, positing that investors are not always rational and may make decisions based more on emotion and biases than fact.
Research shows demand
The College for Financial Planning’s survey of 507 financial professionals shows that financial professionals who incorporate behavioral finance into client relationships see benefits in many areas. Of those surveyed who have received behavioral finance training (35%), 79% said it resulted in better client relationships, 75% said it resulted in better client reception of their planning advice, and 22% said it resulted in more clients.
Of those surveyed who have not received behavioral finance training, 70% are now considering training. Additionally, 78% of all survey respondents are interested in behavioral finance training that resulted in accreditation, and 79% feel that accreditation in behavioral finance would positively influence current and potential clients. Lastly, 90% think that behavioral finance training would help them build their client base and deepen relationships with existing clients.
“Our survey results support what we’ve been hearing from many professionals—that there’s an appetite for advisor-focused behavioral finance training,” said Dirk Pantone, President of the College for Financial Planning. “We’re excited to provide professionals with a specialized program that will enable them to master critical soft skills that can enhance and grow their business.”
Designation details
The 8-week ABFP program consists of weekly Live Online or OnDemand classes, course eBook, ePublications of articles, HD videos, module quizzes, practice exams and a final exam.
Topics covered include foundations and principles of behavioral finance; psychological perspectives on economics; the role of psychological biases, heuristics, and emotions in financial decision making; and applying knowledge of investor psychology into financial advising.
The program is delivered via the College’s online learning platform, which brings the classroom into a home or office. An Activity Feed—a technological advancement unique to this learning platform—advises the student on what to complete each week, so they have an integrated and efficient learning path to exam day. Instructors are not only accessible in-class, but via email direct from the learning platform.
The ABFP professional designation builds on the College for Financial Planning’s ability to offer stackable credentials. As the only financial education provider with stackable credentials across 10 accredited professional designations, CFP certification and a Master of Science degree in Personal Financial Planning, financial advisors are able to advance current career stages while earning credit toward their next credential.
SEE ALSO:
- 401k Participant Behavior Amid COVID-19 and the CARES Act
- Using Behavioral Finance to Improve Employee Outcomes
- Shlomo Benartzi Applies Behavioral Economics to COVID, CARES Act
Veteran financial services industry journalist Brian Anderson joined 401(k) Specialist as Managing Editor in January 2019. He has led editorial content for a variety of well-known properties including Insurance Forums, Life Insurance Selling, National Underwriter Life & Health, and Senior Market Advisor. He has always maintained a focus on providing readers with timely, useful information intended to help them build their business.
