Nobody seems to be denying that the lack of female advisors in the financial planning industry is, at the very least, problematic. Women are slated to control nearly two-thirds of the wealth in the United States over the next decade, yet only 23 percent of CFP professionals are women.
That’s a problem when an estimated 70 percent of women seeking financial advice say they would prefer a female advisor to a male. For women who currently have an advisor, 73 percent report they are not happy with the one they have, and 87 percent say they don’t “connect” with their advisor. Another 71 percent say that Wall Street is not in touch with women’s financial needs. That’s concerning.
The financial planning industry is not ignoring the problem. In 2013, the CFP Board launched its Women’s Initiative (WIN) under Nancy Kistner, CFP to “address the ‘feminine famine’ in financial planning.” Since then, CFP Board has actively sought to address the issue. And though there has been a slight increase in the number of women entering the financial planning field, it’s not an easy problem to solve. It’s a paradigm shift.
Most of the leadership positions within the financial planning profession are still held predominantly by men, who are generally failing to provide what’s needed to attract and train female talent. According to a 2014 report by the Center for American Progress, “women make up 54 percent of the financial-services labor force but only 12 percent of its executive officers and 18 percent of its directors.” If we’re going to bring in more female advisors, we need more female voices speaking about the place of women in our industry.
Woman-to-woman mentoring opens a channel for that to happen. It connects accomplished female advisors with aspiring female advisors to address the essential role women play in the traditionally male-dominated financial planning industry. Mentoring operates where initiatives, incentives, and programs can’t go alone.
Women Mentors Can Attract More Women To The Financial Planning Industry By:
1. Sharing their journey
Mentoring provides a platform where women can empower other women by sharing their journey to CFP certification. A one-on-one mentor who understands the personal, educational and professional investment necessary to become a successful female advisor has considerable insight for those either starting down the path or considering it. Not only can they answer their questions, but they can provide the inspiration, vision and confidence mentees need to take the next steps in their education or careers.
2. Becoming role models
Mentors are role models. They’ve completed CFP Board’s course requirements, attained the certification, and done the hard work to succeed in the financial planning profession. Seeing other women prospering in a male-dominated industry is encouraging because it makes a career as a financial professional seem achievable and provides a reference point for success. Aspiring female advisors relate to their mentors as living and breathing examples of what they can accomplish.