Wealth management firms must also remember that there shouldn’t be a “one-size-fits-all” approach when working with women. This is among the conclusions of an article examining women's issues and HNW finance and investment.

Some good news for wealth managers: when it comes to affluent women, demand for their services is definitely there. 

Some not-so-good news: while women with $250,000 or more in assets want to talk about their finances, especially in challenging times, only one-third of those surveyed by Wells Fargo are turning to advisors.

Nearly half of Millennial and Gen X women who either had $250,000 in assets or who earned over $100,000 reported needing financial advice now more than ever. In fact, three-quarters believe it would be valuable to talk through their financial concerns with a financial advisor - a view also shared among the older generations.

So what can advisors do to convert prospects into clients?

-- Help educate women about financial issues. More than half of affluent women surveyed by Wells Fargo said they wanted to talk with advisors about developing more financial acumen. More than one-third of Millennial and Gen X women said they find financial concepts intimidating (39 per cent) and did not learn enough about finances while growing up (34 per cent). 

Wealth managers are responding. "Women investors are very interested in education about investing issues and stewardship in general,” said Greg Curtis, chairman of  Pittsburgh-based Greycourt & Co. “We’ve responded to these interests by very substantially beefing up our knowledge of impact and ESG opportunities and perils, and expanding our educational resources both internally and via partnerships with other firms."

-- Don’t just talk about money. Millennial and Gen X women in particular want a conversation with their financial advisor beyond the numbers, according to the Wells Fargo report. They want to talk about work (78 per cent), family (71 per cent), and health (60 per cent).

“There is a clear message to financial advisors in this data,” said Heather Hunt-Ruddy, head of business development and growth for Wells Fargo Advisors. “Women expect advisors to converse with them about the totality of their lives, as context for providing financial advice.”

WE Family Offices managing partner Michael Zeuner agreed. 

“We’ve found that the more decisions are framed in the context of their overall lives and what’s important to them, the more confident women feel in making a decision,” Zeuner explained. “That in turn makes them feel more in control of, and successful in, financial decision-making."

-- Mind the gap. There’s a major gap between “what’s being talked about” when women talk to advisors and “what women really want to talk about,” said Hunt-Ruddy. “It’s a fairly wide gap among all generations. Advisors have to do a better job of better understanding female clients.”

Wealth management firms must also remember that there shouldn’t be a “one-size-fits-all” approach when working with women. “It is critical to both invite women to the table at investment discussions, but not to make assumptions about her level of knowledge or comfort with wealth management,” said Shannon Kennedy, global president of BMO Family Office.

BMO advisors are trained to make sure that information and attention is equally shared with both spouses, initiate deeper conversations and to ask women what is meaningful to them and what keeps them up at night, Kennedy said.

Because women are arguably better listeners than men, they are more receptive to the advice model and make better clients, UHNW Institute co-founder Jamie McLaughlin maintained. Consequently, advisors need to keep in mind that their conversations often can - and should - go “broader and deeper” when speaking with women. (McLaughlin is also a member of this news service’s editorial advisory board.)

-- Recognize the leadership role of women in the workplace and at home. 

Women’s contributions to their family’s finances are growing, according to the Wells Fargo study, which was released in conjunction with International Women’s Day. 

Over half of all partnered women reported greater than or equal earnings to their spouse. And nearly one-third of Millennial and Gen X women reported being the primary breadwinner - one and a half times higher than women Boomers and traditionalists (born before World War II). Additionally, half of Millennial and Gen X women stated that they lead the household finances compared with only 40 per cent of women in the Baby Boomer and traditionalist generations.   

“The economic recovery from COVID-19 will be heavily influenced by women as the next generation continues to increase their earnings potential,” said Veronica Willis, investment strategy analyst with the Wells Fargo Investment Institute. 

Women are also poised to benefit from wealth transfer, noted Robin Catlin, managing director at St Louis-based Matter Family Office. 

“Women will be inheriting significant wealth from their aging parents and spouses, which, historically speaking, is a recent evolution,” Catlin said. “Gender shifts toward female property ownership and inheritance, more equitable divorce laws, and women’s longer lifespans are all contributing to this paradigm shift.”

What’s more, women increasingly see themselves as both leaders and resilient in the face of a crisis such as the pandemic, the survey found.

That’s especially true for affluent women in UHNW families, said Amy Hart Clyne, chief knowledge and learning officer at Pitcairn family office.

“Today’s women of wealth are increasingly realizing their larger role in the family enterprise,” Hart Clyne said. “Today’s advisors must recognize this new dynamic and take two critical steps to support female family leaders: Provide the insights and help them understand all aspects of the family’s wealth structures and their financial implications, and empower these women to make strong, informed decisions about the future of their family’s wealth.”