Do Individuals Select Similar Gender Advisors? And, What Advisor Attributes Are Most Important to Male and Female Clients?
According to the Bureau of Labor Statistics, only 32% of financial advisors are women, and yet women control 51% of the personal wealth in the United States. In total, women exercise decision-making influence over $11.2 trillion, with approximately half of that amount managed solely by women. Despite these impressive statistics, women represent an untapped opportunity: 53% of women do not have a financial advisor. Of the women who do have an advisor, 67% believe they are misunderstood by their current financial advisor. Many financial services firms have recognized this disparity and have responded by launching efforts to attract more women, both as clients and as advisors.
According to theories introduced by social scientists, individuals tend to be attracted to others who are similar to themselves. The reason for this attraction is that individuals seek a logical and consistent view of the world and favor stimuli that reinforces these views. Put another way, individuals similar to us satisfy these motives, generating positive feelings about the other person. These similarities might reflect attitudes, beliefs, and values. Other similarities could include demographic characteristics such as occupation, income, race, and of course gender. These theories suggest that men would prefer a male advisor whereas women would prefer a female advisor, so adding more women to the profession would be a prerequisite to attracting more female clients.