“For the human brain, we all have a negativity bias. It’s not a flaw; it’s actually a survival mechanism. So, it’s not that your clients are necessarily overreacting, it’s more that their biology is perceiving a threat when none might even be there.” ~ Tessa Santarpia.
In this episode of Top Advisor Podcast, Bill Cates and Tessa Santarpia dive deep into the fascinating world of neuroscience and its impact on financial decision-making.
This is a compelling conversation about your clients’ brains – as well as YOUR brain – that offers insight into the way we think, feel, and act around money.
Tessa explains why logic alone doesn’t drive financial behavior and how factors like negativity bias, survival mode, and early “money memories” can have a powerful influence on everything from market anxiety to risk-taking.
You’ll learn practical, neuroscience-backed techniques that advisors can use to calm client fears, foster meaningful conversations, and build deeper trust.
Plus, Tessa shares actionable strategies for advisors to regulate their own emotions, shift out of survival mode, and cultivate a growth mindset—so they can lead clients by example.
Quick Excerpts:
- [00:06:30] : “When someone sees red on a chart or a market downturn, the nervous system treats it like a physical threat and their body treats it as such.”
- [00:07:40] : “There are actually very simple neural techniques that advisors can do to re-engage that rational part of the brain.”
- [00:08:55] : “The client is not just listening to your words, they’re actually feeling your nervous system.”
- [00:11:23] : “Advisors have the same brain wiring as their clients. So, the amygdala, the fear center, is still getting hijacked…”
- [00:24:18] : “The most important thing you can do is to really get out of the head, drop into the body. This is when you just want to allow that emotional wave to pass through you.”
Whether you’re looking for fresh perspectives to enhance client relationships or want to better understand your own (and your team’s) financial behaviors, this episode is packed with insights and tangible takeaways you won’t want to miss!
Related: Why ‘Great Service’ No Longer Wins Clients: The New Rules of Deep Financial Advisor Engagement