Why are Women Underserved in Financial Services?

Why are Women Underserved in Financial Services?

No one will be surprised if we mention a gender gap in the financial services sector.

Although half of financial services employees may be female, only 15% of executives and 17% of advisors are women. But what may be less evident is the lower number of female clients. This is particularly worrisome as women often outlive men and frequently control the family purse strings.

Research shows that women will be controlling an increasing amount of wealth, and this suggests that advisors are missing out on a significant opportunity. What’s putting women off? Some may feel that advisors don’t really speak their language. For example, women aren’t always as interested in the performance conversation as they are in whether they are meeting goals and creating stability. Women can also have different risk profiles than male clients, which also creates disconnects. Men and woman sometimes hear things differently, and it pays to be mindful of that.

Recruiting more female advisors may be one way to attract more female clients. The same issues that put off female clients may discourage women from looking at careers as advisors. But women look for purpose and meaning in their careers. What could be more meaningful than helping families achieve their goals?  Here are a few tips for firms that would like to hire more women.

First, prioritize purpose in recruiting. A career as an advisor is more than just numbers. It’s centered around building relationships and helping people achieve their goals. This is a vision that can boost your appeal to female candidates.

Focus on planning rather than just picking stocks and outperforming benchmarks. Women can obviously pick stocks and do the financial work as well as men, but they may find more satisfaction in the knowledge that they are working toward meeting clients’ long-term financial goals.

Offer opportunities for education, training and coaching. If you give your team the chance to attend industry conferences, seminars and workshops, it can boost commitment to the field. If you offer a mentorship program, that is another option that can help attract and retain clients.

For more information, please read:
Why are Women Underserved in Financial Services? | Wealth Management

 

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