Women are reshaping the future of finance: Here are 6 stories you've missed

June 21, 2022 4:10 PM

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As both advisors and investors, women are making their presence known in wealth management.

In a sign of their progress, three women took the leading spots in Financial Planning’s Top 40 Brokers Under 40 list. “We’re seeing a lot of women take control and we’re finding ways to work with them,” said UBS Financial Services wealth manager and honoree Xi Qiao.

In addition, women entrepreneurs are also becoming more proactive by starting their own businesses and investing more money.

For more on these stories and other key developments, read our roundup to learn more about how women are flourishing in finance.

These women are the top 3 young brokers

In a first for Financial Planning, a woman advisor, Jenny Tsai of Morgan Stanley, not only took the top spot in the publication’s Top 40 Brokers Under 40 list, but second and third places were also taken by women advisors: Krystal Julius of Merrill Lynch and Xi Qiao of UBS, respectively.

The annual ranking of elite wirehouse and regional brokers is typically male- and white-dominated. Prior to this year’s ranking, just two women had made it into the top 10 in the last decade: Qiao last year and Nicole Christians of Merrill Lynch on four previous occasions.

“This is a great thing that’s happening, where we’re seeing a lot of women take control and we’re finding ways to work with them,” said Qiao. However, while their achievement is a sign of progress, the fact that it is so exceptional in the industry serves to highlight that more leveling-up work needs to be done.

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These women are the top 3 young brokers

Why don’t more women invest? The system feels stacked against them

As much as $3.2 trillion could flow into investments worldwide if women put their money into the market in the same numbers as men, according to studies from UBS Global Wealth Management and BNY Mellon. The reason? According to the report, women generally feel undervalued by advisors and that their investment goals aren’t taken seriously.

“We see that women are interested in investing, but there is a gap between intention and action,” said Marianna Mamou, the author of the UBS study. “If the advice was suited to what they’re looking for, there could be a huge jump in assets invested.”

The reports found that women feel they are not the target audience for advisors, that they think investing is jargon-filled and confusing, and that advisors don’t relate to their objectives.

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Why don’t more women invest? The system feels stacked against them

Manhattan West’s new founding partner on how an immigrant woman succeeded in wealth management with a little help from mom

Angie Spielman, who moved from Panama to the U.S. at the age of 15, has grown used to the feeling of being the only woman in the room as an advisor in an industry that is not known for either its diversity or inclusion.

“Whether it be my gender or my race, I've always kind of felt like the odd man out,” Spielman said. “And I think at times, I’ve had to work twice as hard as other people because of what I look like.”

Inspired by her mother, her diligence is now paying off. She was recently promoted to founding partner at California-based investment firm Manhattan West, where she is reaping the rewards of working with a leader who “sees everyone equally for what they can deliver, their merits and their hard work.”

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Manhattan West’s new founding partner on how an immigrant woman succeeded in wealth management with a little help from mom

3 ways it pays to network for your entrepreneurial women clients

Some women startup founders and CEOs find themselves struggling due to lack of access to scalable capital. Many do not have a robust network of the right connections or advisors, who can often help bridge the gap and help build their networks.

Women entrepreneurs are 1.17 times more likely than men to found a business that doubles as a social venture, providing an excellent opportunity for clients to gain valuable ESG exposure, according to a study by Boston Consulting Group. As an advisor, this can give your client’s portfolio an edge.

Since COVID-19, more women are starting businesses they are passionate about and finding flexibility in their work.

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3 ways it pays to network for your entrepreneurial women clients

Woman-owned IBD changes name as firm’s footprint grows

Formerly known as Veritas Independent Partners, the woman-owned, Arkensas-based brokerage is now known as Truturo. With this rebrand, and new bull logo, founders Gail Murdoch and Debra Shannon hope to distinguish themselves in a competitive industry.

Murdoch and Shannon chose Truturo to refer back to the word truth, after their branding research they found 41 different FINRA or SEC-registered firms with the Latin word for truth in their names.

When thinking about a rebrand or name change, “There's a lot of work involved with changing the name,” says Shauna Mace, the managing director of practice management solutions with Independent Advisor Solutions by SEI. “There's just cost and effort, and so if you're going to change your name, make sure it's aligned to some larger goal that is meaningful.”

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Woman-owned IBD changes name as firm’s footprint grows

Which traits inspire trust in a financial advisor? Black or white, male or female?

Miranda Reiter, a CFP and assistant professor in Texas Tech University’s School of Financial Planning, recently ran a study to analyze the correlation between gender, race and trustworthiness in the financial services industry.

Reiter’s study furthers the ongoing conversation about representation, diversity and inclusion within the industry and may help both advisors and the clients they hope to serve. Results of her study show no indication that a planner's race was significant in the rating of trust they received.

Based on responses from participants, this study revealed that women were more trustworthy salespersons than men and that women trusted financial planners more than men. Reiter said, “Since the respondents in this study trusted women planners more, the findings support a strong case for increasing the representation of women among financial planning professionals.”

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Which traits inspire trust in a financial advisor? Black or white, male or female?