Will female clients increase demand for female financial planners?
Will female clients with money to invest and futures to plan turn to female financial planners for money and investing advice?
And will this lead to more women joining the ranks of certified financial planners?
Eleanor Blayney, a certified financial planner and CFP Board consumer advocate, believes so.
In an article written for Investment News, Blayney notes that at present, women represent just 23 percent of the financial planning industry and are in mostly entry-level rather than senior-level positions.
According to research by the CFP Board in 2014 for its Women’s Initiative, women are less aware than men of career opportunities in financial planning and less aware of what such a career entails.
Despite this, there may be demand coming from female clients for more female financial planners because there is evidence that female consumers prefer female advisers.
According to the article, divorced women and widows are more likely to seek advice from female professionals. But overall, women place competence and trustworthiness above gender when selecting a certified financial planner.
Women do approach money differently and may have different concerns than men for the following reasons:
- Women live longer lives
- Women earn lower pay
- Women have a greater readiness to care for children and the elderly
- Women think about risk and return differently
Women are often the financial decision-makers in their households. And as holders of earned and inherited wealth, they also have money to invest.
According to a study by Boston Consulting Group,
- More married women are joining millions of single-parent women and becoming the financial heads of their households.
- In the United States, a full one-third of working women make more money than their husbands.
- More women are inheriting wealth because of longevity and demographic patterns.
- The percentage of female executives, business owners and entrepreneurs who are accumulating sizable assets and wealth is rising significantly.
And according to Boston Consulting Group, it is the financial services industry that women worldwide are most dissatisfied with.
“Of all the industries that affect their daily lives, women around the world have identified the financial services industry as the one they are most dissatisfied with on both a service and a product level.”
In the investment arena, 73 percent of respondents were unhappy with the service level they received and 71 percent were dissatisfied with a financial provider’s product offering.
The women surveyed also said they would be more than willing to switch to providers that understand them better.
What exactly do women want from financial services providers and financial advisers that that they are not getting now?
According to the study from Boston Consulting Group:
“They want recognition from the industry that women view money and wealth differently from men. By and large, women do not seek to accumulate money for its own sake but view it as a way to care for themselves and their families, improve their lives and – most important – ensure security… They want advisors who understand their need for short-term simplicity and long-term stability. They want solutions that help them with their most frustrating task: managing the household finances from day to day and month to month.”
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Article last modified on January 4, 2018. Published by Debt.com, LLC . Mobile users may also access the AMP Version: Women Advising Women - AMP.