New York, NY – In the midst of the largest wealth transfer in history, with an estimated $30 trillion expected to shift from one generation to the next within the next decade, the financial advisory sector faces a pivotal moment.
This transition includes a significant portion destined for women, who are increasingly becoming the stewards of family wealth. Yet, despite this burgeoning economic power, a disconnect remains between women and the financial advisory services traditionally dominated by Wall Street.
A stark illustration of this gap is the overwhelming number of women who choose to leave their financial advisors after significant life changes, such as becoming widowed or divorced. An astonishing 80% of widows switch financial advisors within a year of their husband’s death, highlighting a critical failure in the industry’s ability to meet the needs and expectations of female clients. This trend is further underscored by the regret expressed by 61% of divorced women who wish they had engaged a financial advisor during their divorce proceedings to better navigate their financial future.
These statistics are not just numbers; they represent a systemic oversight in how financial services have traditionally been structured and delivered. The industry has long been criticized for a male-centric approach that often overlooks the unique needs, communication styles, and priorities of female clients. Feedback from widowed and divorced women frequently includes feelings of being undervalued, patronized, or outright ignored by advisors who had previously catered primarily to their spouses. This neglect is not just a personal affront but a professional misstep, as women in the United States currently control more than half of the country’s personal wealth, a figure projected to grow significantly in the coming years.
The disconnect extends beyond personal interactions and into the very products and services offered. Traditional investment advice and financial planning often fail to account for the distinct ways women engage with their finances. Research and anecdotal evidence suggest that women tend to prioritize holistic financial wellness, long-term security, and investments aligned with their values over short-term gains. The industry’s slow adaptation to these preferences has left many women feeling alienated and seeking alternatives.
Recognizing this gap, fintech innovators like Willow have emerged to bridge the divide, offering platforms and services designed to better serve women and underrepresented investors. Willow, for example, provides technology and guidance to financial advisors, enabling them to attract, retain, and grow relationships with this critical demographic. The platform focuses on empowering advisors with the skills, content, and training necessary to connect with and support the unique needs of women facing life transitions such as divorce, widowhood, and career changes.
The data and trends paint a clear picture: Wall Street and traditional financial advisories are at a crossroads. To remain relevant and capture the opportunities presented by the shifting demographics of wealth, the industry must undergo a transformation. This involves not only recognizing women as pivotal economic actors but also reevaluating and restructuring services to meet their needs authentically and effectively. Failure to do so risks perpetuating a system that leaves half the population—and a growing portion of the nation’s wealth—behind.
The journey toward inclusivity and equity in financial advisory services is not a simple one. It requires a fundamental shift in perspective, approach, and offerings. However, as the wealth transfer continues and women’s economic power grows, those financial institutions and advisors who heed the call to adapt will find themselves at the forefront of a more equitable and prosperous future for all investors.
According to Advisorpedia, a significant number of widows, approximately 80%, choose to switch financial advisors within a year after their husband’s death, highlighting a gap in the financial advisory sector’s approach to serving women (“Why 80% of Women Leave Their Advisors When They Lose Their Husband,” Advisorpedia, 2017).
Mattingly Cavagnaro LLP reports that 61% of divorced women wish they had enlisted the help of financial advisors during their divorce, underscoring the importance of financial advice in navigating major life changes (“Why 61% of divorced women wish they hired financial advisors,” Mattingly Cavagnaro LLP, 2020).
GlobeNewswire discusses Willow’s launch, a fintech platform aimed at enabling financial advisors to better serve women and underrepresented investors, marking a step towards more inclusive financial advisory services (“Fintech Innovator Willow Launches the Willow Insights for Advisors™ to Enable Financial Advisors to Better Serve Women and Underrepresented Investors,” GlobeNewswire, 2022).
Has Wall Street Left Woman Behind?
New York, NY – In the midst of the largest wealth transfer in history, with an estimated $30 trillion expected to shift from one generation to the next within the next decade, the financial advisory sector faces a pivotal moment.
This transition includes a significant portion destined for women, who are increasingly becoming the stewards of family wealth. Yet, despite this burgeoning economic power, a disconnect remains between women and the financial advisory services traditionally dominated by Wall Street.
A stark illustration of this gap is the overwhelming number of women who choose to leave their financial advisors after significant life changes, such as becoming widowed or divorced. An astonishing 80% of widows switch financial advisors within a year of their husband’s death, highlighting a critical failure in the industry’s ability to meet the needs and expectations of female clients. This trend is further underscored by the regret expressed by 61% of divorced women who wish they had engaged a financial advisor during their divorce proceedings to better navigate their financial future.
These statistics are not just numbers; they represent a systemic oversight in how financial services have traditionally been structured and delivered. The industry has long been criticized for a male-centric approach that often overlooks the unique needs, communication styles, and priorities of female clients. Feedback from widowed and divorced women frequently includes feelings of being undervalued, patronized, or outright ignored by advisors who had previously catered primarily to their spouses. This neglect is not just a personal affront but a professional misstep, as women in the United States currently control more than half of the country’s personal wealth, a figure projected to grow significantly in the coming years.
The disconnect extends beyond personal interactions and into the very products and services offered. Traditional investment advice and financial planning often fail to account for the distinct ways women engage with their finances. Research and anecdotal evidence suggest that women tend to prioritize holistic financial wellness, long-term security, and investments aligned with their values over short-term gains. The industry’s slow adaptation to these preferences has left many women feeling alienated and seeking alternatives.
Recognizing this gap, fintech innovators like Willow have emerged to bridge the divide, offering platforms and services designed to better serve women and underrepresented investors. Willow, for example, provides technology and guidance to financial advisors, enabling them to attract, retain, and grow relationships with this critical demographic. The platform focuses on empowering advisors with the skills, content, and training necessary to connect with and support the unique needs of women facing life transitions such as divorce, widowhood, and career changes.
The data and trends paint a clear picture: Wall Street and traditional financial advisories are at a crossroads. To remain relevant and capture the opportunities presented by the shifting demographics of wealth, the industry must undergo a transformation. This involves not only recognizing women as pivotal economic actors but also reevaluating and restructuring services to meet their needs authentically and effectively. Failure to do so risks perpetuating a system that leaves half the population—and a growing portion of the nation’s wealth—behind.
The journey toward inclusivity and equity in financial advisory services is not a simple one. It requires a fundamental shift in perspective, approach, and offerings. However, as the wealth transfer continues and women’s economic power grows, those financial institutions and advisors who heed the call to adapt will find themselves at the forefront of a more equitable and prosperous future for all investors.
Sources:
According to Advisorpedia, a significant number of widows, approximately 80%, choose to switch financial advisors within a year after their husband’s death, highlighting a gap in the financial advisory sector’s approach to serving women (“Why 80% of Women Leave Their Advisors When They Lose Their Husband,” Advisorpedia, 2017).
Mattingly Cavagnaro LLP reports that 61% of divorced women wish they had enlisted the help of financial advisors during their divorce, underscoring the importance of financial advice in navigating major life changes (“Why 61% of divorced women wish they hired financial advisors,” Mattingly Cavagnaro LLP, 2020).
GlobeNewswire discusses Willow’s launch, a fintech platform aimed at enabling financial advisors to better serve women and underrepresented investors, marking a step towards more inclusive financial advisory services (“Fintech Innovator Willow Launches the Willow Insights for Advisors™ to Enable Financial Advisors to Better Serve Women and Underrepresented Investors,” GlobeNewswire, 2022).
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