Advisors Leaving Billions on the Table by Failing Women — But Are New Products the Answer?

Lumiant's response to a new study published by Bonn Wealth Management: Building a Winning Client Experience for Women.

A report published by Simon-Kucher & Partners states that women remain an underserved client segment in wealth management, suggesting that US$14 billion in additional fee revenues could have been available to financial institutions in the US and Canada in 2021 alone. The report suggests that advisors do not know how to communicate effectively with women and are not offering the types of products that interest female investors.

Lumiant believes that products aren't the real problem — particularly as financial instruments become increasingly customisable and personalised. The real problem is that the traditional advice experience does not effectively communicate, engage, or motivate women. Almost a third of women say their financial advisors push them out of financial conversations, according to New York Life Investments.

The Real Fix Isn't a New Product

We need to get better at having deep and meaningful conversations with clients to truly understand their values and what matters to them. We then need to give them an experience that helps align those values and goals with their finances — rather than creating and selling new investment options that we think meet their needs.

That means better understanding what clients care about, then choosing suitable options accordingly. It means placing life ahead of financial products and services.

And this experience shouldn't be seen as female-focused alone. It should be an experience that all clients are entitled to — one that allows them to better connect with their advisor around their life, values, and finances, and to make informed choices for themselves and their households.

When we give clients more space and power to engage with us about what truly matters to them, we can better help them live a life aligned with their values. Financial advisors are there to support, serve, and advise clients on the choices they can make — not to sell them a better product.

Building the Experience Around What We Do Best

It's time to build the advice experience around what advisors do best: the ability to coach, guide, and educate clients and their families to help them live their best lives. This approach will help advice firms better engage underserved clients while increasing referrals and retention — not by launching a new product range, but by finally delivering the experience clients have always deserved.