Assets controlled by women are growing
Assets managed by women have been increasing over the past decade. According to the Boston Consulting Group, between 2010 and 2015 private wealth held by women rose from $34 trillion to $51 trillion. Women’s wealth also increased as a share of all private wealth from 28% to 30%. By 2020 experts anticipate female private wealth investors to hold $72 trillion, 32% of the total.
As money managers seek to attract and serve wealthy women, and as those women express their values through their portfolios, the impact will be felt within the investment industry and beyond. The gender gap between male and female advisors may become smaller too.
Female advisors make up a small portion of the industry
Women make up nearly 51% of the US population, yet female financial advisors currently make up only a small portion of the overall financial industry. A recent study done by the firm Cerulli revealed that women account for less than 20% of all wealth advisors, with the disparity increasing the higher up the wealth ladder you look.
Women tend to be goal-focused investors
Female investors tend to think holistically and build financial plans in terms of life goals. The research firm Cerulli found that female investors tend to mention specific financial goals when discussing their investment objectives, such as buying a house or retiring at 60, whereas male investors are more likely to say that outperforming the market is their top priority.
Women may be more likely to change how they receive advice
Cerulli also found that affluent women are more likely to seek financial advice, and fewer direct their own investments compared with men. However, it seems many women are unhappy with the advice they are receiving. In fact, a survey done by Econsult Solutions in 2016 found that 62% of women with significant assets under management would consider ditching their current money manager, compared with only 44% of men.
As many women seek more holistic financial advice than what they’re receiving from their male counterparts, female financial advisors may become more prevalent. A recent survey done by the US Census Bureau found that 55% of women between the ages of 25 and 34 prefer working with female financial advisors, while 70% will leave their financial professional within a year of being widowed.
Doing our part to #PaveTheWage
Although there’s a cultural shift moving toward the empowerment of women and equality of the sexes within financial services, there are still many victories to be celebrated — including closing the gender pay gap. At MoneyLion, we’re doing our part by giving members a 17% cash bonus on their first direct deposit to help recognize the gender wage gap disparity. Learn how you can also PaveTheWage and get your bonus today. ?
TERMS AND CONDITIONS
Limited time offer. This promotion is open to all genders. Matching contributions are limited to $3,000,000 in aggregate. Individual matching contributions are limited to $599 per person. Promotional period ends when maximum matching contributions are reached. Must maintain direct deposit into MoneyLion Checking Account for at least 90 days to receive matching contributions. Eligible matching contributions will be deposited into MoneyLion Investment Account. Must be a MoneyLion member in good standing at all times until payment of matching contributions. See the Official Rules for additional terms, conditions and eligibility requirements.