Signs point to advisors making strides with female clients and it’s a good thing given the trillions of dollars of assets women will control in the coming years.
A recent Nationwide Retirement Institute® survey highlights some of the progress the wealth management industry has made with women. The survey says 95% of the women polled believe their advisors are treating them with the same level of respect afforded to male clients.
Obviously, that’s a good thing. It also likely represents progress, but there’s work to be done. At the end of the day, 95% in a survey of this nature is a great percentage. Advisors know that regardless of gender, they can’t please everyone all of the time. But as Nationwide puts it, “blind spots” linger regarding how advisors work with female clients.
Shoring up those weaknesses isn’t difficult, but it also involves more than knowing women have different financial goals and needs than men. Some of it boils down to improving soft skills and shedding old, bad habits.
Cut the Condescension
In an effort to give advisors some latitude here, they are experts. That’s why prospects are coming in the door in the first place. Advisors know something, actually, many things, clients and prospects do not.
If there’s a “burden” with being an expert, particularly for men, it’s not stepping over the line that divides smart and arrogant. Translation: no one likes mansplaining, particularly women, but the Nationwide survey indicates advisors have a lot of work to do in this department.
“34% say they find their financial professional condescending when explaining recommendations or responding to questions,” observes Nationwide. “32% say their financial professional assumes they know less about finances than they actually do.”
And no, mansplaining in this context isn’t an attempt at humor. Twenty-nine percent of women responding to the Nationwide survey said their advisors do in fact mansplain concepts to them and, not surprisingly, they don’t appreciate that form of communication.
Advisors Are Seeing the Light
Whether it’s motivation prompted by women earning more money and becoming increasingly interested in investing, the great wealth transfer or more pure factors, advisors are more hip to the benefits of catering to female prospects. Some of those advisors are also aware of the importance of communication and trust as foundations for fruitful long-term relationships with female clients.
“Among financial professionals in our survey, one-quarter (25%) said that building engagement and trust with women clients doesn't come naturally for them as working with men clients. In response, financial professionals are looking to adjust their communication styles to relate better to women clients, so they feel more a part of the process and confident in their decisions,” according to Nationwide.
Something to consider for male principles/practice owners. Hire more female advisors or consider working with a coach to shed the mansplaining and enhance the soft skills needed to better connect with female clients and prospects.
“Women financial professionals share the same perspectives of their women clients, and many use this perspective to structure their conversations around personalization and intentionality. That often means taking the time to ask thoughtful questions to better understand women clients’ concerns and wishes,” concludes Nationwide.
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