PeachCap Article in Wealth Management Magazine

PeachCap was again featured in the press, this time with an article in Wealth Management magazine’s “Year-End Trends and Outlook” issue. You can read the article below, or download the whole magazine here.

There is a Showtime TV series that has captivated audiences with the high drama of big money and investing on Wall Street. Called “Billions”, the show pulls back the curtain surrounding high-power investing to reveal a fictionalized (though accurate in a hyperbolic form) world of lawyers, hedge fund managers, and, perhaps somewhat surprisingly, millionaire shrinks.

Why would a hedge fund employ a ruthless therapist and why would she have the ear of the CEO on nearly every important decision? It not only makes sense, but it is based on a growing trend in the world of investing and finance. Before anyone makes a multi-million dollar decision, they need to have a clear head and the confidence that they are operating on the right motivations.

The term “emotional intelligence”, despite being ubiquitous today, is relatively new, coined in 1990 by psychology professors John D. Mayer of UNH and Peter Salovey of Yale University. Mayer describes emotional intelligence this way:

“From a scientific (rather than a popular) standpoint, emotional intelligence is the ability to accurately perceive your own and others’ emotions; to understand the signals that emotions send about relationships; and to manage your own and others’ emotions. It doesn’t necessarily include the qualities (like optimism, initiative, and self-confidence) that some popular definitions ascribe to it.

“What we are seeing today is the explosion of a new trend. The ROI has been demonstrated, and particularly as more layers of technology are being added between financial advisors and their clients, the need is bigger than ever. It is the first and most important mission of an advisor to grow their client’s financial emotional intelligence.

The financial services industry has a golden opportunity to increase its relevance with its clients and create more value than ever, but success is dependent on approaching emotional intelligence the right way. Here are three things financial services companies need to keep in mind:

  1. Offering emotional intelligence services means more than listening to and advising your client. Listening and advising is what we have been doing for decades, and now clients are opting to use robo advisors in droves. Instead, an emotional intelligence service needs to be structured, intentional, and focused on outcomes.
  2. We cannot pretend to be experts when we aren’t – our industry needs to invest in emotional intelligence training and education before we offer it to our clients. Our young professionals are coming out of school without any training in this area, a sign that our industry has not yet placed the kind of emphasis on this issue that it needs to. Start by training your team and seeking out resources to become emotional intelligence experts.
  3. Clients will not understand or value your firm’s emotional intelligence service if you do not package it in a way that is approachable and value-driven. You must cast a vision for how pursuing greater emotional intelligence will improve their financial decision making and peace of mind.