We must do better to support women in financial services

In the early 1980s, I found myself with a few dollars from selling a house, and I tried to figure out what to do next. I took a hesitant step into an E.F. Hutton office, feeling out of place and unqualified. The advisor there, a kind woman, invested my funds in a California tax-free bond fund, although I had no tax problem and no need for income. Looking back, I wished she had suggested a stock fund, but her words stuck with me: “You should look into being a stockbroker.”

Years later, amid a divorce, I decided to revisit the idea. Armed with nothing but an impressive business card from my Amway business, I boldly walked into a local investment office. Although they didn’t hire trainees, they referred me to Merrill Lynch. I didn’t know the difference between a stock and a bond, but Merrill’s training was top-notch, and I was soon on my way.

My journey from Merrill to Wells Fargo, and eventually to independence with Raymond James (and now as president of the Financial Planning Association), taught me the importance of having supportive mentors and the right opportunities. I realized the value of being on the same side of the table as my clients and fell in love with financial planning. Today, I am proud to support and advocate for more women entering and thriving in the financial planning profession. This journey began with one woman’s encouragement and continues with my commitment to ensuring other women can find their path to success in this field.

But data alone suggests we have a long way to go. The Bureau of Labor Statistics says that only 32.6% of all advisors are women. At the same time, CFP Board of Standards’ demographic data points out that only 23.8% of all CFP professionals are women. With some estimates suggesting that women control more than half of all personal wealth in the United States, it’s crucial that we do a better job of recruiting and retaining women in client-facing advisory roles, particularly as financial planners.

Creating a supportive and welcoming environment for women considering a career in financial services is essential for promoting gender diversity and inclusivity in the industry. Fostering an inclusive culture, providing mentorship and development opportunities, and actively promoting diversity are steps we can all take to support and encourage women to pursue careers in financial planning. Here are some ways.

Encourage: Just like the kind advisor at E.F. Hutton in the early ’80s did for me, a few words of encouragement can go a long way in motivating someone considering a career in financial services. Since I decided to make this my vocation, I have always tried to encourage other women by offering advice on navigating the industry or simply being supportive. Some still see the pervasiveness of the “old boys club” mentality in financial services. While I have seen it myself, I believe we are in the midst of a shift that could be much more profound if everyone took the time to encourage women to find their way in the industry.

Connect: Think about your career. Chances are you owe much of your success and standing in the industry to the connections you’ve made. Just as the people you’ve met have positively impacted your life, you can do the same for women new to the field. Take some time to introduce them to key professionals, access valuable resources that support their professional development, and identify opportunities for career advancement.

Lead: If you’re like me and have committed yourself to volunteer leadership in the industry, then you too are able to lead by example. Leaders in the financial planning profession should actively demonstrate their commitment to creating a welcoming environment for all, including women. We can set the tone for the entire industry and inspire others to embrace these values so all can thrive and grow. Furthermore, we should do what we can to encourage more women to seek volunteer leadership opportunities where their professional standing is elevated and they can directly impact the profession’s trajectory.

Ally: Consider steps you can take to be an ally for underrepresented voices in financial services, including women, through established allyship programs or through your efforts. Being an ally means promoting support, advocacy and partnership from colleagues, particularly men, to help women succeed and thrive in their careers. Allies like you play a crucial role in fostering an inclusive and supportive culture, advocating for gender equality and actively supporting the career development of women in the profession.

As I reflect on my career, I can pinpoint those moments when colleagues and friends in this transformative field provided the guidance and motivation I needed to find my place in financial planning. Without the inclusiveness I have felt over my career, I don’t know where I would be today. I owe it to the profession and future generations of financial planners to do my part to ensure women can enjoy the same experience I have. I hope you join me.

Claudia Cypher Kane, CFP, CIMA, CPWA, ADPA, CDFA, is the 2024 president of the Financial Planning Association and is based in Roseville, Calif. Contact her at [email protected].