Loreen Gilbert is the CEO and Founder of Wealthwise Financial Services.
The wealth management industry is changing, with women taking a more prominent role as both affluent clients and top financial advisors. This shift in wealth and leadership creates new opportunities for financial advisory practices, and it highlights why women are uniquely suited to lead and grow more of these practices.
Women are expected to control $30 trillion in financial assets by the year 2030 according to McKinsey research on affluent consumers. Today, 30% more married women are making financial and investment decisions than they were just five years ago. Additionally, women live longer than men on average, and 70% of women who inherit wealth change advisors within the first year. With this data, we know that women will continue to be a large focus of the wealth conversation going forward.
In the wealth management industry, approximately 15% of employees across all channels are women according to the same McKinsey research. I would estimate that less than half of these women are leading advisors, which means there is a significant gap in the marketplace and an opportunity for more women to lead. My tenure as a business owner who started and currently leads a wealth management firm tells me that women bring specific advantages to this space. Let’s explore why.
Many women prefer to work with female advisors.
A recent survey by Ellevest found that 94% of women would prefer to work with a female advisor. It’s not surprising that at nearly every industry conference I attend, male advisors have breakout sessions on how to work better with their female clients.
Female clients have unique planning needs and value advisors who take the time to listen and involve them in the decision-making process. This approach differs from the traditional approach of telling the client what is best without the client understanding what they are actually doing.
Shifting towards this personalized strategy isn’t just about client satisfaction—it’s also about outsized revenue growth. Analysis by McKinsey’s PriceMetrix tool shows how less-tenured practices that can engage affluent younger women see annual revenue growth of 5%, well above the industry average of 1%.
Whether it’s due to the comfort of speaking with someone who shares similar life experiences or the focus on a client-centric approach, female clients often gravitate toward female advisors. As women continue to dominate new industries and grow their wealth worldwide, advisors find themselves learning how to communicate better with female investors.
Women excel in client-centered approaches.
Bringing more female advisors into the male-heavy industry offers a much needed balance for clients. The wealth management industry still leans heavily toward a practitioner-led approach, and as a result, 64% of clients feel unsatisfied in terms of “having someone to talk to about money.” This survey supports my experience that female clients want to talk extensively about what is on their minds during a meeting versus simply going over reports. Female advisors can help improve client satisfaction through their client-centered approach.
Female advisors also tend to stand out for their listening skills and focus on clients’ goals. They put the client at the center, prioritizing their unique needs over the advisor’s personal agenda. This isn’t just a style of advising; it’s how advisors build trust and long-term relationships. This approach speaks to a financial-planning approach with life goals being at the forefront of the conversation.
Women approach scaling through mergers and acquisitions differently.
During the M&A process, I have seen a clear difference in how men handle these deals. Their focus tends to stay on the transaction, while I focus on building a relationship with the seller and truly understanding what is important to them and their practice. That’s why I like to meet with sellers in person versus only having phone calls and a Zoom meeting.
For me, it isn’t just about buying a business. It is about culture and making sure the transition will be smooth for their clients and that their legacy will be enduring.
Recently, one seller mentioned that I was the only female potential buyer and also the only person who asked to meet with him in person. This approach wasn’t just a nicety. It set me apart from the other potential buyers. I gained trust and showed I was interested in more than just the financial aspects of the deal by prioritizing our working relationship. This relational approach is one of the key advantages women bring to M&A一and one that’s increasingly valuable in the marketplace.
Women are more than uniquely suited to run financial practices一they are driving the future of wealth management. The rise of female investors, the preference for female advisors and the distinct strengths women bring to client relationships and the M&A process all point to one thing: Women aren’t just filling a gap, they are raising the bar and have an incredible opportunity over the next decade to be leaders in the industry.
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