Critical Analysis of Clients’ Financial Behaviour

Running head: FINANCIAL BEHAVIOUR
Financial Behaviour
Name of the Student
Name of the University
Author note

FINANCIAL BEHAVIOUR2
Part 1:
Interview of a financial advisor:
Attended by: Name of the financial advisor
Date: 03-Oct,2019 Time: 15:00
Questions Answers and notes
1. Client background/history
Can you provide the background
on the client's situation (back
story) and how it led to this
situation?
The client works in an IT company and is about to get a
retirement in the next month itself. He worked in an IT
company and has under 10 years two daughters and he
is about to retire in 15 years. He appointed me to assess
the current financial situation, the financial aspects
affecting the future of his children 9 their higher
education and weddings) and to understand the
intricacies of his retirement related investments. The
client, in the last few months is really worried about the
future of his daughters, after his retirement. Moreover,
he had previous losses at business investments and since
then he had not taken any investment decisions until
now, when he is planning his retirement life.

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2. Outline of the situation
Can you outline the client’s
problem, issue or complaint that
has arisen with yourself or your
firm?
Who was involved?
While I tried to help with the various retirement plans,
in which he can invest from now and then after
investing a certain premium for 15 years – he can have a
stable source of income from the retirement fund, on a
regular basis after 15 years when he retires from his
profession. The client’s main problem with me arose
when he focussed the financial planning just on the
children’s future while I stressed the retirement plan to
be more effective for his older life. The issue was a
communication gap that I faced with my client in this
case and it was difficult to make him understand that
retirement would actually him and his wife to receive
regular income from the retirement fund without any
extra pay. The amount of the premium was a bit high
and he said that I cannot pressurize him ( which I was
not doing) to subscribe for the aforementioned
retirement plan, as he thinks a low investment for an
average retirement plan would be better for him as with
that he can support his daughters predominantly, after
his retirement.
3. Client behaviour
Can you describe the client’s
behaviour throughout the
situation?
The client’s behaviour, initially when we began the
interaction was very polite and adherent to the situation.
As the consultation sessions progressed – instead of
having a trust worthy relationship with me (his financial
advisor), his behaviours started to become very
disruptive. On a couple of situations, instead of listening
patiently for a bit with me – he started to act very
impatient with me and at certain points – he was naïve,
reluctant and verbally very aggressive. He was
countering most of the retirement solutions, I gave him
and started with a challenging behaviour towards me.

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4. Your own and other employees’
behaviours
How did you feel during this
situation?
Can you describe your own and
other staff’s behaviour/reactions?
After receiving the complaint from my client I was
called for justification and I presented my point with
enough documents. It was very stressful situation in my
career. Numerous office colleges advice me to comply
with my client concerns and to make the financial plan
accordingly to avoid any further consequences.
5. Root cause
What do you believe is the root
cause of the problem?
He might have been involved with a severe loss due to
high volume direct capital investment, that is why he
might be panicking. I believe that, a sense of insecurity
regarding large volume capital investment is the main
reason behind his problem.
6. Impact
What was the impact on the client
from a perception, emotional and
financial perspective?
After facing a huge loss because of unplanned
investment on some other investment operations, a
permanent phobia might have developed in his mind
regarding a high capital direct investment.
7. Action
What would you have done
differently?
If I were in his place, I would rather invest my capital
with proper analytical understanding with rational
problem solving. In this case, while investing in
retirement plan – I would have thought of my own
future with my wife’s and used other funds to support
my children (if required).
8. Changes
What changes to staff training,
back office/business processes,
client service standards and/or
job roles have been undertaken to
reduce the chance of it re-
occurring?
More staff training must pertain to client
communication, skill development sessions in order to
interact and aid the client through a ‘financial’
counselling. In order to meet a high client servicing
standard – the more humanistic financial counselling
approach must be added.