Have you ever wondered why people make the financial decisions they do? For example, what factors do they consider when they sell a business that’s been in their family for three generations? Do they weigh the worries about letting their grandparents down against their own disappointment that their children don’t want to continue the family tradition?
Behavioral science strives to answer these questions. Essentially, it uses psychology, economics and sociology to analyze how people make decisions. It’s long been used in fields like healthcare and technology, but some innovative financial firms are now turning to this discipline to help clients better understand the psychology behind the decisions they make about money and life.
At JPMorganChase, behavioral science is already making a meaningful difference—especially for high-net-worth clients and the teams who serve them. For example, it helps clients and advisors recognize that financial decisions aren’t just about numbers; they’re about emotions, family and identity.
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