An open invitation to women: The financial services industry needs you

I want to be clear from the get-go: The financial services industry needs you.

We know that there still aren’t enough women who hold professional positions in technology, engineering, and other sciences. These are professions that have historically been dominated by men.

While this has been changing, to me one of the greatest needs lies right in my own backyard – within financial services. We need to start encouraging more women to become financial advisors.

To provide some context, women currently represent about 30 percent of financial advisors according to the most recent statistics from the U.S. Department of Labor, and only 23 percent of Certified Financial Planner? professionals. Both of these statistics have been flat for many years.

Several months ago I asked LinkedIn readers why they thought this was so. I’ve also spoken to many female colleagues to gather their insights. As you might imagine, the reasons reflect a combination of truth and misconceptions, all of which need to be addressed.

But to me, the bigger issue is that by attracting more women to a career as a financial advisor, we not only break through professional barriers, but at the same time we help our clients. It’s a win-win, clear and simple. And a movement, I believe, whose time is now.

There is a huge opportunity for women

A number of studies, including one from Schwab, show that many women, and younger women in particular, prefer to work with a female financial advisor. As I pointed out in my earlier post, this represents a significant generational shift – and I believe it is just the first sign of more significant shifts in the future.

The upside for women, of course, is that this gender gap represents a significant professional opportunity. Low supply and high demand – doors (and ceilings!) are opening up as increasing numbers of financial firms actively recruit qualified women.

Understanding what it takes

Perhaps one of the biggest barriers to women pursuing a career as a financial advisor is the misconception that you have to focus on sales. Or that you have to be a math whiz. Or that an overly demanding schedule will disrupt your work-life balance.

The truth is quite the contrary. Being a financial advisor is more about helping your clients achieve their financial goals than selling products and services. Basic math proficiency is all that is needed. And although some firms may not suit your lifestyle or personality, there are plenty of others that will. In reality, the qualities most important for success as a financial advisor include empathy, strong communication skills, and the genuine desire to help people pursue their dreams and achieve financial security. The rest follows naturally.

You can make a big difference in people’s lives

As an example of the kind of impact that you might have as an advisor, I’d like to share a true story. Libby had been working with an elderly couple, Lawrence and Marian, for many years. Even though both attended all of their meetings, Lawrence dominated the conversations. Try as she might, Libby just couldn’t draw Marian out.

All of that changed one day when Libby took the couple out to lunch with another male colleague. While Libby’s colleague entertained Lawrence, Marian suddenly found her voice. She shared that her father had controlled the family finances, and that her mother had been at a complete loss when he died. At this point in her life, Marian feared that she could find herself in the same situation. She wanted to learn how to take care of herself.

From that moment forward, Libby and Marian went to work. Under Libby’s wing, Marion read personal finance books, devoured the business section of the newspaper, and familiarized herself with their portfolio. To Lawrence’s amazement and complete delight, Marian not only began to speak up at their meetings, but she asked probing questions and fully participated in all of their decisions.

In a private moment, Marian later confided to Libby, “I just wanted you to know that this has been the best thing that has ever happened to our marriage. I feel strong. I can’t thank you enough.”

I share this story as just one example of how an advisor can help improve their clients’ lives. I won’t deny that the profession requires a lot of dedication and hard work, but I also want to emphasize that it is important and meaningful. Clients like Marian are the proof.

Are you interested? I hope I’ve captured your interest. If I have, of course every firm is different. If any of what you’ve read prompts you to investigate specific opportunities, I encourage you to keep a few questions front and center:

1. Does the firm share your values? Does it put the client’s needs first? Is your compensation aligned with your clients’ best interests? Does the firm value and encourage diversity?
2. Is the firm supportive? Will it provide you with the resources, training, and support that you need to excel? Is the staff aligned in a common goal of helping your clients succeed?
3. Will you have supportive colleagues? A strong sense of team and positive role models can make a huge difference.

For years now my dad (who was always ahead of his time) has been saying that as Schwab employees we are “the custodians of our clients' dreams.” I like to think that this sentiment – which focuses on people rather than dollars -- is gradually taking hold in large and small financial services companies across the country. Women, please take note. Join us in making it happen.

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