Andes Wealth and Orion: Marrying Risk Analytics with Behavioral Finance to Support a Better Advisor-Client Journey

Behavioral finance and risk analytics have become increasingly popular in wealth management. These disciplines are believed to hold the key to better investment outcomes and more satisfying client experiences, especially in the wake of market turmoil such as that caused by COVID-19.

The value of behavioral finance and coaching is well established. For example, a 2019 Vanguard study reported that the emotional value advisors create through behavioral coaching accounts for 45% of the total perceived value in the advisor-client relationship. However, clients may sometimes resist behavioral coaching, perceiving it as judgmental. Advisors are challenged to make this process easy, engaging, and enlightening.

Investor behaviors are often influenced by market movements. The risk-return tradeoff, a concept dating back to Harry Markowitz's Modern Portfolio Theory in 1952, suggests that higher risk leads to higher returns. However, during periods of market turmoil, high risk can also mean sharp declines. When conventional wisdom fails, behavioral finance becomes crucial, as it recognizes that investors are not always rational and markets are not always efficient. Advisors need integrated technology to help clients understand both the market and their own emotions.

Introducing Andes Wealth Technologies, Proud Partner of Orion Advisor Tech

The Andes Wealth Platform is the first to combine behavioral finance with risk visualization, empowering financial advisors to deliver actionable insights into both investments and investor behavior.

• ​AccuProfile® Behavioral Finance Module: Helps clients identify their investor type and behavioral biases, such as loss aversion, which can lead to irrational decisions. Awareness of these biases helps clients manage their emotions and grow as investors.
• ​Deep, Timely Analytics: Unlike other systems that provide risk analytics quarterly or monthly, Andes Wealth offers daily analytics, giving clients timely insights. Visualizations help advisors illustrate issues like lack of diversification and excessive risk, facilitating deeper conversations with clients, especially during market turmoil.
• ​Risk Tolerance Test: The patent-pending test allows clients to select their comfort zone on the risk-return spectrum, with results mapped directly to one of the firm’s models. This approach is intuitive, transparent, and defensible, supporting a trusting long-term relationship.

By combining behavioral finance with risk visualization, the Andes Wealth Platform enables advisors to deliver personalized services that address both the functional and emotional needs of clients.

Andes Wealth and Orion Advisor: Blending Better Client Experience with Powerful Efficiencies

The integration between Andes Wealth and Orion is designed to enhance the client experience and streamline advisor workflows. Orion has developed custom data queries to synchronize household and account data with the Andes platform, making it easier to:

• ​Seamlessly move clients from risk profiling to portfolio model selection and ongoing monitoring, applying behavioral finance concepts throughout
• ​Improve transparency with a comprehensive, digestible Investment Policy Statement (IPS)
• ​Help advisors communicate the long-term story during market turmoil using behavioral finance and deep analytics visualizations

Eric Clarke, founder of Orion, stated that using technology to augment human compassion and insight is the new frontier of fiduciary service. Andes Wealth Technologies is proud to partner with Orion in transforming the wealth management experience.

Start Improving Client Outcomes Today

To learn more about Andes Wealth Technologies and the partnership with Orion, visit their integrations page.

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1. 1.Helen Yang, founder and CEO of Andes Wealth, received the prestigious Harry Markowitz Award in 2011.