In this analysis, Gillian Hepburn, Commercial Director at Benchmark, reflects on fascinating research which was recently carried out by Benchmark. Here Gillian highlights some of the issues involved and key challenges which advisers face when it comes to delivering better service for their women clients.
A few years ago, as our industry began to talk more about wealth transfer to the next generation, we realised that many weren’t thinking enough about an ongoing phenomenon—the transfer of wealth to women.
Within the baby boomer generation, the first point of wealth transfer in most joint households is typically from husband to wife. This isn’t merely a future trend; it’s happening now. An oft-cited piece of research from some time ago predicted that by 2025, around 60% of wealth would be in female hands¹. And while this may not quite reflect where we have got to, the direction of travel is clear. Yet, according to recent research by Schroders only 34% of women remain with their adviser when this transfer happens². If advisers fail to address this dynamic, it can pose a real threat to their ongoing success. This was brought home to me last year, when I heard that an adviser in a family office type of business with a small number of extremely wealthy clients had recently been informed that their services were no longer required by two female clients within a few weeks of their partners’ passing. A significant loss to an adviser looking for a future exit strategy usually predicated on a business valuation aligned to assets under management!
In some previous research, we conducted interviews with older women to understand their attitudes towards finance and advice. Yet, while these conversations were illuminating, they left many questions unanswered. So, with our new research, we aimed to gain fresh insights into this dynamic shift.
As a starting point, we wanted to better understand women’s perspectives before delving into how advisers could better serve them.
Key findings from our research
One of the standout discoveries from our research was a persistent disconnect—not necessarily in understanding what financial priorities women have, but rather in the levels of satisfaction with the advisory services they receive. An important and relevant example of this was value for money where 75% of women identified some level of dissatisfaction but only 24% of advisers thought that would be the case.
Women are becoming increasingly financially literate and are actively making investment decisions. Many are taking control of their financial futures and showing a significant interest in responsible investing. They prefer advisers who offer a consultative, holistic approach that considers their long-term goals and personal circumstances.
Busting some myths
Some of our findings came as something of a surprise to me. For instance, contrary to popular belief, 76% of women indicated that they didn’t care about the gender of their adviser. I always suspected this might be the case, but it was eye-opening to see this confirmed. It countered the notion that simply hiring more female advisers can solve the dissatisfaction issues among female clients.
Another revelation was about confidence levels. Many women felt more self-assured in their financial decision-making abilities than I had anticipated with many investing separately from their partner. Similarly, the risk appetite among younger women was stronger than traditionally presumed.
What could advisers do differently?
70% of advisers told us they were actively seeking or planning to find more female clients. Yet our research revealed that only 22% of advisers always have both partners present during discussions, and 45% primarily communicate with the male partner despite understanding the importance of involving both.
So, first and foremost, it’s important to assess if there’s a problem within your business and be honest about it. Addressing women’s financial needs isn’t necessarily about introducing a different proposition but rather improving communication. Advisers should focus on building trust, listening actively, and creating a safe space where women can ask questions and seek education without judgement.
Taking these steps—recognising women’s distinct perspectives, ensuring both partners are engaged, and providing tailored advice—can significantly enhance client satisfaction.
Consider this evolving landscape both a potential risk and an opportunity. Reflect honestly on whether your practice is genuinely engaging female clients and take the necessary steps to ensure your business is truly female-friendly. By doing so, you should not only be able to retain clients but also attract a new, dynamic demographic eager for your guidance- the 66% leaving their adviser need somewhere to go!
Gillian Hepburn is Commercial Director at Benchmark
Source: ¹ Centre for Economics and Business Research 2005. ² Schroders, 2024.
