Rational thinking: Is behavioural finance worth advisers' attention?

BEHAVIOURAL FINANCE

Laura Miller
clock

Behavioural finance - touchy feely psycho-babble or financial planning essential? Laura Miller looks at the birth and evolution of a phenomenon.

If you asked someone, "do you want to lose money", the answer is undoubtedly going to be "no". So everyone acts in their own best financial interest, right? Not according to the fathers of behavioural finance, Amos Tversky and Daniel Kahneman. Never heard of them? Well you should have. Kahneman was awarded the Nobel Memorial Prize in Economic Sciences in 2002, and in both 2011 and 2012 he made the Bloomberg 50 most influential people in global finance list – despite being a psychologist. Why all the accolades? Well, during their research Tversky and Kahneman hit upon a series of be...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Your profession

Rise of the money coach

Rise of the money coach

Advice hurdles pose as push factors but plenty of pull factors too

Sophia Panayi
clock 30 June 2026 • 9 min read
Why advice gap progress may be on the horizon

Why advice gap progress may be on the horizon

'Three things appear to be moving the needle'

Will Dunwell
clock 30 June 2026 • 5 min read
Why accessibility is a must-have in a digital-first world

Why accessibility is a must-have in a digital-first world

Meeting the accessibility needs of vulnerable customers

Jonathan Hassell
clock 29 June 2026 • 4 min read