Women seek referrals from other women

St. LOUIS, October 22, 2024 —According to U.S. financial advisors, 72% of their women clients who found them through a referral specifically sought recommendations from other women, finds a new survey from Edward Jones, in partnership with Morning Consult. With two-thirds of American women viewing themselves as the “Chief Financial Officer” of their family, it’s clear that women are increasingly taking a bigger role in their financial future, and there is a growing opportunity for financial advisors to serve them.

When seeking a financial advisor, women turn to their networks, and financial advisors say their top referral source for their women clients come from client’s friends and family (77%). Surveyed financial advisors note their ability to offer personalized, tailored financial advice (64%) as one of the top reasons why women clients chose to work with them.

When trying to build an authentic connection with clients, financial advisors report focusing primarily on being transparent and honest about results, fees and services (72%), actively listening to their needs and concerns (68%), regularly following up to check on their progress, and involving them in every step of the decision-making process (66%).

“Authenticity and transparency are paramount in building successful client relationships. All investors value a financial advisor who takes time to understand their unique financial needs,” said Jasmine Butler, financial advisor at Edward Jones. “As a woman, I bring warmth and empathy to my client conversations. Saying, I get you and I'm here to guide you every step of your financial journey really resonates."

Empathy, transparency and communication are key to conversion

When it comes to converting women investors into clients, financial advisors highlight the top three most important factors are providing clear communication and education (65%), being empathetic towards their financial situations (64%) and maintaining regular and transparent communication (63%).

“At Edward Jones, financial advisors are offered the opportunity to build their practice their way. Our practice models offer flexibility along with advanced products and tools enabling our financial advisors to serve more clients, more completely. This includes taking a goals-based approach to help women investors with complex needs,” added Butler.

Supporting women investors as they balance priorities

Whether balancing paying for their child’s education, caring for aging loved ones, or focusing on saving for their own retirement, women investors have unique considerations and goals. Challenges like caregiving weigh on women investors, and three-fourths of financial advisors agree that women clients’ caregiving duties have negatively impacted their ability to save for their financial goals (74%).

Financial advisors report more than three-fourths of women clients prioritize long-term investing over short-term investing (77%), with their top financial goals being contributing to their 401(k) (63%), working toward financial independence (61%) and building personal retirement savings (56%).

To learn more about this research, please visit www.edwardjones.com/womeninvestors.

Methodology

This survey was conducted by global data intelligence company Morning Consult among a national sample of 405 financial advisors from August 22 – September 6, 2024.