In the following blog for Wealth DFM Magazine, Alison Whatnall (pictured), Co-Founder and Chief Operating Officer at GSB, highlights just some of the reasons why better balanced teams within advice and wealth management organisations can not only enhance client relationships but also boost business success.
The financial services industry is still somewhat male-dominated, making it harder for female wealth managers to find mentors or feel fully integrated.
There are often challenges with work-life balance, particularly for mothers, as unfortunately the industry can have demanding hours.
Some women may also face unconscious bias or assumptions about their financial acumen, which creates an additional hurdle in gaining client trust.
But these obstacles for women in finance need to be eradicated by the industry.
According to Handelsbanken Wealth & Asset Management, more than two thirds (69%) of women prefer to speak to a female financial adviser – and according to UBS, an estimated $9 trillion globally will be transferred to women over the next few years.
As more women become wealthier, female financial advisers will be vital to the future of the industry – so we need to improve the inclusivity of the sector.
What female financial planners offer wealth businesses
This is not an article expressing men should leave the industry altogether – far from it. Male advisers are vital to the sector – but having balanced teams of both men and women can enhance client relationships.
Female wealth managers often bring a high degree of empathy and strong interpersonal skills to client relationships.
They can foster trust more quickly with certain demographics, especially with female clients who may feel more comfortable discussing personal financial matters with another woman.
They tend to focus on holistic financial planning, considering not just numbers but also life goals and personal well-being, which can enhance long-term client relationships and satisfaction.
Business growth
Attracting more female financial planners can lead to greater profitability as it helps to diversify perspectives and approaches, which often leads to stronger client relationships and broader market appeal. Female financial planners are also likely to attract female clients, a growing and often underserved market.
A more inclusive firm will retain talent better, and clients may stay longer due to a stronger alignment of values, leading to long-term growth.
There are a few adaptations that firms can make to their business to make women feel more included in the financial planning sector.
Flexible working hours and remote work options are key in making the workplace more attractive.
Mentorship programs designed specifically for women, and promoting successful female role models within the firm, can also be powerful.
Creating a culture that values diversity in leadership and encourages a supportive, inclusive environment will help attract female talent. Additionally, providing career progression tailored to individual goals, not just financial targets, can make a difference.
Career returners
Despite making great strides in recent years, care responsibilities still often fall more on women than men. Maternity leave aside, women are more likely to look after children and/or elderly relatives – but these are by no means the only reasons female professionals take career breaks.
But returning to work after, what can often be a long period of time, may be daunting.
To combat this, firms need a smooth process to make re-integration easier and ensure the returning professional feels valued.
One way this can be tackled is through career returners programmes, which help get women who have taken a career break back into the sector. This can feature flexi-working times as well as professional development courses to get staff members back up to speed.
Initiatives like this help promote financial planning as an inclusive career – prepared to help all employees at any times of their life and highlight the important balance between having life goals as well as career ambitions.
Future
The number of female financial planners is expected to continue to grow as more firms realise the importance of diversity.
As more women enter the workforce and seek financial advice, they will naturally gravitate toward advisers who understand their specific needs.
Additionally, with the right support systems in place, more women will feel empowered to enter and excel in the industry. In the coming years, we will likely see a more balanced gender ratio, though it will take continued effort.
The wealth industry needs to reflect the diversity of its clients, which includes women, different age groups, and cultures. If the industry doesn’t evolve, it risks alienating potential clients and talent. Adapting the industry to better serve diverse demographics will also foster more inclusive growth and innovation.
