The advice industry needs to shift its thinking regarding female clients, according to advisers and consultants.
The insurance industry is doing a good job in turning conventional assumptions about the family unit on their head, “which is interesting in terms of how institutions are going about product strategy,” according to Wade Matterson of product development consultancy Milliman. However, he said, there is not that much product innovation when it comes to specific women’s needs.
“It is a challenging area where most institutions have taken a broad-brush approach,” he said. “But there are real opportunities for companies to target that female sector and deliver highly tailored services and solutions for them.”
Matterson said innovation, or at least a shift of thinking, was more likely to occur in the advice sector, while product providers looked to develop more specific applications of their existing products to suit individual circumstances.
“That’s the whole issue around financial planning in general – it’s supposed to and needs to be a tailored approach and there is a growing acceptance that there are some stark differences in how you would set up financial plans for single men and women, versus family units,” he said.
While attention should be paid to every client’s individual circumstances regardless of gender, the advice industry needs to shift its thinking regarding female clients, according to Sarah Riegelhuth, a financial adviser at Wealth Enhancers in Melbourne. Her target clients are female legal professionals.
“I think advisers need to broaden their perspectives and think about different types of clients anyway,” said Riegelhuth. She said advisers needed to be aware that female clients often posed different types of problems to male clients.
She supported the drive in some quarters to attract more women to the advice sector because she felt women were well placed to take advantage of significant opportunities.
“What we are really good at is referring – women love to tell their friends about something that they really like,” she said. “I just think there is a huge opportunity – and a huge advantage you can have as a female adviser – by tapping into those female client markets.”
The Association of Financial Advisers (AFA) recently launched an advice award recognising women in the industry. It is aimed at attracting more women to the industry, and in turn getting more women to seek advice, according to AFA chief executive Richard Klipin (pictured). The announcement of the award caused some debate within the industry– which was exactly what Klipin was hoping for.
“It’s starting that debate and I think leading that conversation with an overlay of research, and excellence of practice in the marketplace, allows the community to have the conversation,” he said. “I think [product and service] innovation will then drive out of that.”
