Wealth management advisors take note because a new group of clients is emerging in the private wealth management industry: women.
Boston Consulting Group notes that “With a third of the world’s wealth under their control, women have become a sizable economic force. They are increasing their wealth faster than before—adding $5 trillion to the wealth pool globally every year—and outpacing the growth of the wealth market overall.”
Despite the increasing power of their purse strings, however, women remain largely underserved by the wealth management community, according to a comprehensive global study by BCG. Too many banks and firms rely on broad assumptions about what women are looking for, resulting in products, services, and messaging that can feel superficial at best and condescending at worst.”
To put things in perspective, the compound annual growth rate for wealth accumulated by women is projected to be 7.2%, or $5 trillion. Most of this wealth is in North America, Western Europe, and Asia. Women are a big part of the future of the wealth management industry.
Serving Women in the Private Wealth Management Industry
Women are no longer bystanders in the wealth management industry.
Women multitask, ask questions, and seek advice regarding their money. They take greater financial responsibility for their lives by learning financial planning and investment strategies. When older women become widows, they often change investment firms within one year of their spouse’s death. They are looking for a better fit with their philosophy and planning goals.
The Future of the Private Wealth Management Industry
Savvy wealth management firms have been preparing for this new client base in several ways:
- Going digital. Young investors, including women, expect digital asset control.
- Adopting outcome-based planning. Investors see the interconnection between financial services. Planning with a specific goal now transcends multiple financial areas, including banking, investing, paying taxes, estate planning, etc.).
- Seamless just-in-time support. The capability for instant payments and omnichannel support are in high demand, thanks to industries outside of wealth management firms already providing them.
- Robotic process automation (RPA). RPAs are redefining roles in wealth management. Advanced analytics drive workflow, making human interaction and communication more valuable then ever.
- Hiring for diversity. Wealth management firms must consider the new face of their clientele and hire advisor candidates who reflect that consumer base. Your recruiter can help you find, attract and retain top talent who represent the diversity found in your clients.
As women continue to influence to wealth management industry, private client advisor firms will likely see a hiring shift. As older male advisors begin to retire, women may be ready to step up and step into these available positions.