According to economic trends studies, more than half of the U.S. population is women, and their role in home finances has changed. Today, 63 percent of women under the age of 45 control the financial decisions in their families. In contrast, less than 20% of financial advisors are women. The obvious difference between the number of women financial decision-makers and the number of women financial advisors presents an opportunity for advisories.

In an article from the Wall Street Journal, Jane Schwartzberg, of UBS Group AG’s U.S. wealth-management unit, says there is a notable increase in prospective clients who want to work with women financial advisers. “It’s not that women make better advisers, it’s that prospects are now more vocal that they want diversity from the people they get advice from.” Schwartzberg says broad-reaching conversations about gender issues are driving the demand for diversity in financial services. 

While there is an increase in industry efforts to recruit more women in financial services, the number of women in the profession has been flat since 2016. But many firms in the industry are working hard to change that. Merrill Lynch, for example, reports that about 3,500 employees in their U.S. adviser training program are women — the largest number in the company’s history.

To continue this discussion and efforts, we are hosting a panel discussion among women thought leaders in financial services. This webinar is open to financial professionals of all genders who are interested in achieving gender equity in the industry. Register for Closing the Gap: Women in Financial Services.

Attracting Women Financial Advisors to the Financial Services Industry

Recruiting women in insurance and financial services continues to be a challenge. While advisories may be making headway in attracting women financial advisors, there’s still a long way to go. Some women may not be interested in the financial services industry because they consider financial advisors to be salespeople rather than the consultants they are. 

To attract more women financial advisors, the industry must make a concerted effort to educate women about the role of advisors and the opportunities the industry presents. When more women can see that financial advisors spend more time building relationships, solving problems, and creating strategies than they do “selling,” recruiting them will be much easier. 

So how can advisories attract more women to the industry? The first step is to instill a culture of inclusion in your firm that is reflected in your brand. If women can’t see that your advisory is actively pursuing greater diversity in its advisors, they may still see the industry as a “boys’ club.” 

Other steps advisories can take to attract more female candidates include focusing recruiting efforts on women and other underrepresented candidates. For example, an outreach campaign to help college-age women understand the opportunities for women in the financial services industry, and the true nature of the industry, could provide a pool of fresh talent.  

Use an advisory’s online presence to highlight the successful women in financial services. By putting the spotlight on accomplished women financial advisors, women in college or other professionals have a clearer picture of how fulfilling a career in financial services can be. 

One organization that is working to close the gender gap through better support and community among female advisors is the Female Advisor Network. FMG Suite is proud to partner with this organization to help further their mission and provide marketing tools and strategies to those in this group.

Are Women Financial Advisors Better Than Their Male Counterparts?

Many women investors prefer working with a female financial advisor. But is it only the common gender that fuels these preferences, or are women providing better financial advice? According to Warwick Business School, research suggests there may be something more going on. Consider these statistics:

  • Women in financial services outperform men at investing by almost 2%.
  • Women are less likely to pick speculative stocks.
  • Female investors have a more long-term perspective than male investors.
  • The study of 2,800 investors found that over three years, women investors outperformed the FTSE 100 and their male counterparts.

Whether it’s female advisors’ investing prowess, empathy and intuitiveness, or merely being more relatable to their women clients, the need for more women in the industry is evident. Attracting women to the financial services industry will continue to be necessary for advisories committed to gender diversification. 

FMG Suite is glad to work with the Female Advisor Network to help empower women financial advisors and give them the tools they need to put automated marketing to work in their advisories. Schedule your demo of the FMG Suite tools today.