Posted on: 03-11-2020 in Women's Finance
Our ‘women in finance’ series focuses on the financial issues that women face.
From gender equality in the workplace to financial planning, this series takes an in-depth look at key topics of discussion.
Being a female financial advisor was unheard of 50 years ago. For decades, the world of finance has been made up of almost entirely men.
While we’re now seeing increasing numbers of female wealth planners, they are still outnumbered. It’s estimated that on average, only 20% of financial advisors are women.
Despite the lack of women, their expertise is very much in demand. They typically offer a different approach to the traditionally male role – something many people, in particular women, feel they can trust.
Today, clients seeking financial advice are not exclusively wealthy.
The industry has seen a massive rise in the number of customers from low-income backgrounds looking for help. The traditionally male and sometimes more formal approach doesn’t work for a lot of newer customers.
Clients are looking for an advisor who can relate to their problems and who listens to them.
Women want someone who can empathise with them. They don’t want to be intimidated. They also need to feel that the organisation they’re working with is progressive, rather than offering them the same advice they would have done 20 years ago.
Employers are often looking to hire female wealth planners over males, partly to increase gender diversity, but also because:
Being a female financial advisor usually means you’re likely to offer a more sympathetic ear to potential clients. People want to feel heard so they can put their trust in a company.
If a woman is looking to invest or get financial help, she is more likely to trust another female. Working with a female advisor will make her feel as if her problems are understood. As the number of female clients increases, demands need to be met.
The higher the numbers of women employed in a company, the more likely it is that a young woman at the start of her career will want to work there. A more diverse workforce also attracts more customers.
Seeking advice from a female means, they’re more likely to feel comfortable enough to commit to larger and more frequent investments.
They are more likely to listen to their client’s problems and show intuition as well as understanding. The more diverse your employees, the more likely you are to find the right match for your clients. In turn, this means more success for your business.
There are thriving organisations dedicated purely to female wealth planners, which shows the level of need for this kind of financial advice.
So many companies are seeing the value of having more female wealth planners as part of their team. However, the industry has still not achieved equality.
It’s possible that there may still be some people at the top who believe that finance is a ‘male world’, even if it’s subconscious.
The lack of women present in organisations could be putting other women off joining that specific company or working in financial planning at all.
Having more women working for a financial organisation helps to diversify its client base. Not only that, but it will also help a company satisfy its customers’ needs.
With more and more women seeking financial help these days, the demand for female wealth planners will continue to grow. As demand grows, the industry needs to be prepared.