High Dimension

Orion Advisor Solutions Innovates By Combining Behavioral Psychology With Award-Winning Advisor Technology

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Counselor technology gets a behavioral boost, integrating the science of psychology into everyday workflows and tools


To close the behavioral gap and improve investor results, Orion Advisor Solutions integrates behavioral finance into its award-winning wealth technology platform.

Orion will infuse academic research and behavioral psychology into the tools used by technology advisors on a daily basis, including risk profiling and financial planning proposal tools. The first step in this merger is a new 3D risk profile that adds depth to the Risk Tolerance Questionnaire (RTQ) by measuring a third dimension of “behavior” in addition to the traditional measures of “tolerance” and “ability”. “. The goal is to help advisors provide outstanding service, better understand clients, and help investors recognize the emotions and triggers that can derail their long-term goals.

Investors have been shown to make bad decisions when under stress. Buying and selling at the wrong time can ruin investor returns. When the market bottomed out in March 2020, 1 in 5 investors sold all of their stocks, only to miss one of the most dynamic and important bull markets a few weeks later.1 The value of behavioral coaching can make a big difference in Bridging the Behavior Gap, which measures the loss an average investor suffers due to emotional reactions to market conditions. Studies have shown that this gap can range from 1.17% to 5.35% per year.2

“We want advisors and investors to understand each other at every stage of the advisor-client journey. This understanding is the foundation of the reassurance and peace of mind that drives better relationships, better results and sustainable growth, ”said Eric Clarke, CEO of Orion Advisor Solutions. “Using technology to increase human compassion and insight is the new frontier of fiduciary service, and we are just beginning to explore the possibilities. ”

New RTQ Adds Behavioral Dimension to Better Predict Investors’ Emotional Response to Volatility

By integrating behavioral finance into the risk tolerance questionnaire, Orion aims to fundamentally transform one of the earliest advisor-client interactions. Adding a measure of “coolness” focuses on the psychology behind a client’s decision. The resulting 3D risk profile creates new opportunities for advisors to better tailor portfolios based on clients’ true risk tolerance, ensuring alignment with asset allocation recommendations, individual goals and their ability to stay the course.

Orion’s 3D Risk Profile Tool will start with a standard questionnaire to assess an investor’s risk “capacity” or ability to take risks based on their age, wealth level and understanding. financial. The tool will also measure “tolerance” or willingness to take more risks for greater reward. The addition of “risk control” measures a client’s tendency to worry about volatility and provides key insights into their expected behaviors during times of market turmoil or stress. Those with a high self-control score remain calm in market volatility, while those with lower self-control levels can be more easily shaken up.

A more complete understanding of customer behavior is a proven catalyst for growth. Since the 1980s, awareness and application of behavioral finance has increased year by year. In fact, 81% of advisors report using behavioral finance techniques, and among these advisers, 62% added new clients twice as fast as those who did not use behavioral finance techniques3. Knowing what drives human behavior is one thing; using psychology to improve client relationships and ultimately portfolio results is another. But it’s worth it: According to a Vanguard survey, the emotional value that a counselor creates through behavioral coaching accounts for about 40% of the total perceived value of a counselor-client relationship.4

“Over the past year, advisers have found that traditional measures do not hold water in times of economic and market stress. It really helps to help clients understand their own psychology when it comes to assessing individual risk profiles and how they plan to protect and grow their money, especially in volatile markets ” said Dr Daniel Crosby, director of behavior at Orion. “Being able to predict which clients will react negatively to financial uncertainty can help ensure advisors reach out to their clients at the right time. ”

The advantages of a 3D risk profile:

  • Provides advisors with the ability to create portfolios that clients will stay with

  • Deepens advisor relationships with clients by educating them on the process and expectations to ensure successful investment results

  • Designed by leading behavioral finance doctors

  • Pre-identify clients who will need more attention during market volatility

  • Defensible process for Reg BI compliance, including 20 questions and measuring three dimensions

The 3D risk profile can be used with Orion’s financial planning tool, as part of HiddenLevers’ proposal capabilities, and on the Orion Portfolio Solutions platform.

To learn more about the value of behavioral finance visit, orion.com/behavioral-finance. For an overview of the tool integrated in HiddenLevers, Register now for our upcoming webinar, Fight or Flee: Recognizing and Responding to Customer Fears, June 23 at 2:00 p.m. CT.

About Orion Advisor Solutions

Orion Advisor Solutions is the leading provider of the technology-based fiduciary process that transforms the advisor-client relationship by enabling financial advisors to prospect, plan, invest and realize within a single, connected, technology-driven experience. Together, our branded entities, Orion Advisor Tech, Orion Portfolio Solutions, Brinker Capital Investments and HiddenLevers, create a comprehensive offering that enables companies to attract new clients in a transparent manner; Link goals more meaningfully to investment strategies and results, and ultimately track progress toward each investor’s unique definition of financial success. As a result, Orion supports more than 2,200 consulting firms with $ 1.5 trillion in assets under administration and an additional $ 50 billion in combined platform assets (Orion Portfolio Solutions and Brinker Capital) on the TAMP open architecture, making Orion the platform of choice for any growth – focused consulting firms looking to strengthen their relationships with their clients, gain a competitive advantage in a crowded marketplace and build strong, profitable businesses. Learn more about www.orion.com.

1 https://theirrelevantinvestor.com/2020/06/18/one-out-of-five-investors-sold-all-of-their-stocks/

2 Dalbar Report “2021 Quantitative Analysis of Investor Behavior – Variable Annuities (” QAIB-VA “)

3 https://www.thinkadvisor.com/2020/09/10/how-behavioral-finance-can-help-clients-and-advisors/

4 Vanguard “The Value of Advice: Evaluating the Role of Emotions”.


Company details :

Michele Steinmetz



Media contact:

Mark Grandstaff

Gregory FCA for Orion Advisor Solutions



Source: Orion Advisor Solutions