June 28, 2022 Thought Leadership 3 mins read

Understanding the “Explorer” Behavioural Persona

The InvestorEQ risk tolerance assessment is designed to uncover key psychological factors that influence an investor’s financial decision-making.


The scientifically validated psychometric questions in the assessment lead to distinct investor personas that help advisors deliver the personalization that underlies successful advisor-client relationships today. The investor report that the investor and advisor receive upon completion of the risk assessment attributes one of eight behavioural personalities to each investor. The report analyzes the investor’s biases, behaviours, and beliefs from a personality type and provides recommended discussion points for the advisor and action steps for the client which help guide the client-advisor engagement. Today we highlight the “Explorer” personality and what advisors need to know to effectively engage this investor persona.


Behavioural persona: The Explorer

Explorers are one of the most common behavioural personality types, displaying a high degree of confidence and a willingness to take on more risk than others. They are actively open-minded, and they easily adapt to new information. However, because Explorers tend to be overconfident and also have above-average financial acumen, they are at risk of overestimating their ability to make better financial decisions than other investors.


Advisor tips for successfully communicating with explorers

  • The advisor needs to challenge the Explorer’s views and provide a different perspective; play devil’s advocate, offer alternative possibilities, and show supporting evidence.
  • Explorers may not need conceptual education because they already have strong financial skills; but they will need guidance, and the advisor can lead their client to the right choices by providing appropriate data and in-depth analysis.
  • The advisor should be concerned that an Explorer may take on too much risk, as opposed to too little risk. “Loss framing” is appropriate here; demonstrate scenarios showing potential losses that the client may suffer when taking inappropriate risks; discuss the probability of loss, and project losses forward to give a full perspective.

Behavioural Personas Create Stronger Client-Advisor Relationships

Using a behavioural approach when engaging with your client ensures that you both understand how your client thinks and makes decisions. Ultimately, this will lead to better decisions and a stronger client-advisor relationship.

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  • Mark Doyle

    Mark Doyle is Executive Vice President, Client Experience at Pascal WealthTech and is the head of Pascal’s behavioural finance product InvestorEQ. A recognized leader in the financial services industry, he has more than 30 years of experience building strong client relationships and winning investment management mandates. Mark also serves as President of Marksman Asset Management, a portfolio manager focused on creating custom taxable and tax-exempt portfolios for individuals and families. Prior to joining Pascal, Mark held senior investment roles with several of the world’s leading financial institutions. Mark holds the CFA designation and is a registered portfolio manager.