man checking stocks on newspaper and tablet

TD Wealth has renewed its agreement with a behavioural economics research centre as the firm continues to integrate behavioural tools into wealth management.

The Toronto-based firm said Wednesday that it has decided to continue a 2018 agreement with the University of Toronto’s Behavioural Economics in Action at Rotman research centre.

The collaboration has helped TD advisors learn about clients’ blind spots and the reasons behind their financial decisions, the firm said in a release. TD Wealth’s personality tool provides information about clients’ personalities that can be useful for guiding conversations.

“It was very evident this year, considering the Covid-19 pandemic, that this deeper understanding of our clients has helped drive more personalized advice and planning conversations, and has helped clients grow their awareness of their financial blind spots and how it could unknowingly influence investment decisions,” said Dave Kelly, senior vice-president and head of TD Wealth Private Wealth Management and TD Wealth Financial Planning, in a statement.

Wealth management firms are taking a greater interest in behavioural finance. Last year Manulife Investment Management partnered with behavioural economics consulting firm BEworks to train advisors on the emotional biases that affect investors.