In today's society, women are earning more and seen in more leadership roles than ever before. This has created a need and urgency for women to make more financial decisions. As a result of this, it’s clear that there is a demand for more representation of women in financial planning.
As of 2022, only 22.5% of financial advisors in Australia are women. This article aims to highlight the benefit of women in financial planning and elaborate on why women are a fundamental part of the financial sector.
Women In Financial Planning Improving Client Outcomes
Many of you might not have considered the value that a female financial advisor could add to your financial plan. It has been argued that female advisors are preferable for women, as they have the ability to resonate with their clients and understand where their priorities and goals lie.
The Association of Financial Advisors (AFA) has conducted research that reiterates the above statement. The analysis conducted highlights that men and women have a differing stance on financial advice; with women placing high importance on trustworthiness and client relationships.
Fundamentally, women advisors often have a different skill set than men. For instance, women are natural caretakers, with the inherent ability to listen, relate, and be empathetic towards a client’s situation. Women are typically more comfortable talking to clients about personal facets of their lives and are good at building trustworthy relationships.
This is incredibly pertinent considering the importance of being transparent with your financial advisor to receive the most accurate financial advice.
For female clients, they are often more comfortable with a female financial advisor too. Sometimes women can be less forthcoming with information when meeting with a male financial planner, particularly when discussing personal details.
From experience, those who have chosen to work with Yield’s female financial advisors often felt a sense of connection in meetings, as they can be candid and have an emotional conversation.
Women financial advisors are also a preferred choice for other women who have experienced a relationship breakdown. These women feel very vulnerable and the opportunity of being able to be expressive with another female can put their mind at ease. Women have a natural tendency and willingness to listen and can be good at providing insights on how to deal with problems and issues that may be a consideration for you when making your choice between a male and female financial advisor.
Furthermore, we find that clients who are retirees often place a greater emphasis on the client relationship rather than the investment return or product solution. Often these clients have children that have left home or are single and seek comfort from female advisors, wanting to feel “looked after”.
Helping The Financial Industry
It’s important to understand that women offer a lot to the financial industry; whether in investment decisions, corporate culture, and client services. Women are typically more risk-averse than men, which is a benefit regarding your financial plan, to temper volatility at both ends of the scale.
However, it is imperative to note that this is not going to be the case for every female financial advisor, and these components may also apply to your male financial planner. Nonetheless, the research supports the fact that female financial advisors offer a multitude of benefits to their clients.
Diversity in Yield Financial Planning
At Yield, we are proud to say that we have strong and capable female financial advisors on our team, making Yield’s gender equality 50/50 at an advisor level.
Yield encourages women to reach their full potential through opportunity, dedicated team support, and a flexible workplace arrangement, which is a great initiative toward attracting female professionals to the industry.