Advisors Urged to Use Brain Science to Manage Clients

At The American College of Financial Services’ Conference of African American Financial Professionals in Chicago this week, financial planner Vanessa Martinez and clinician Patricia Villarreal urged advisors to learn basic brain science and behavioral finance to better handle clients’ emotions and expand relationships.

Martinez opened the session by asking how many advisors had experienced a client crying in a meeting; most in the room raised their hands. Martinez challenged advisors who try to avoid emotional moments: “I know there are many advisors that think, ‘No, that’s going too far. I don’t want to get in that type of relationship with my clients.'” She added that emotional reactions are part of client conversations whether advisors welcome them or not.

Martinez and Villarreal said the goal is not to turn planners into therapists but to give advisors tools to recognize how biology shapes decisions. Villarreal, who serves as chief clinical officer at Martinez’s registered investment advisory firm, described how the amygdala links emotion to memory and how mirror neurons help people feel empathy for someone sitting across from them.

Villarreal explained the roles of cortisol and oxytocin in meetings. Cortisol rises with stress and can help short-term thinking but hurts judgment and health when high for long periods. Oxytocin can increase trust in small amounts when clients feel safe. She noted small details-how an advisor greets a client, the meeting environment or an advisor’s manner-can affect a client’s sense of safety.

The presenters gave concrete communication practices for meetings. They recommended asking better questions, listening more closely, speaking second or last, slowing the meeting pace and summarizing key takeaways. A slide concluded: “The questions you ask can demonstrate your intelligence more than the answers you give.”

Martinez pointed to planning gaps that can affect business. She said many advisors focus on clients and their children but do not plan “up a generation” for clients’ aging parents. With large transfers of wealth underway as baby boomers age, she warned that avoiding topics such as caregiving, long-term care and end-of-life planning can leave gaps in a financial plan and missed service opportunities.

Villarreal recommended that advisors be willing to raise difficult topics and make referrals to mental health professionals when appropriate. She said advisors do not need to be therapists or to have all answers, but they should understand when to refer and how to manage emotionally charged conversations.

The presenters also addressed identity and authenticity in client work. Martinez described changing her appearance early in her career to fit expectations and later deciding to present herself more authentically to build trust. “We have to be ourselves to be able to connect with other people,” she said, and she urged advisors to ask questions before forming conclusions.

The CFP Board has added the psychology of planning to its principal topics, and certificated training such as the certified financial therapist credential is available for advisors seeking deeper study. Martinez and Villarreal said modest shifts in training and communication can affect client relationships and, in some cases, lead to longer, multigenerational ties and referrals based on trust rather than product sales.