Lack of confidence in advising female investors
Almost 70 per cent of financial advisers give themselves a passing grade (B and under) when grading their understanding of female investors, a report has found.
State Street Global Advisors' gender gap report found the investment industry only understood female investors at a surface level.
Although there is a conventional understanding that women are less confident than men in investing, it ignores variables such as age, education, and experience.
The report found 51 per cent of female investors aged 25 to 34 were "very confident in my investing skills" whereas women aged 50 to 69 were at 14 per cent.
"In fact, for 87 per cent of women, gender doesn't play a significant role when choosing an adviser," the report said.
"Women with a female adviser tend to be more confident than women with a male adviser. While gender is not a factor in hiring an adviser for most investors, women often report a stronger connection with — and sense of understanding from — their female advisers."
The report said three key ways for advisers to empower and grow their female investors were to be her partner, inform and collaborate with her, and help her avoid regret.
The report said to get these right they needed to:
- Communicate regularly and effectively;
- Build trust and connectivity;
- Focus on goals and outcomes;
- Tailor interactions and information;
- Help her manage life changes;
- Be aware of how traits and strengths evolve;
- Explain your value proposition; and
- Appreciate the individual.
Recommended for you
A quarter of advisers who commenced on the FAR within the last two years have already switched licensees or practices, adding validity to practice owners’ professional year (PY) concerns.
Integrated wealth and financial services group Rethink has launched a financial planning arm called Rethink Wealth to expand beyond property investing and into holistic wealth management.
While adviser numbers continue to slowly creep back up, the latest Wealth Data analysis reveals they would actually be in the green for the calendar year if it weren’t for so many losses in the limited advice space.
Iress has appointed a chief AI officer to spearhead the fintech’s strategic focus on AI, with chief executive Marcus Price describing how the technology opens the doors to a “new frontier for wealth advice”.
