ALBANY, N.Y.–A new analysis offers some insights into how women are doing in the financial services industry, while a new book examines “Financial Services Women at the Top.”
None of the women involved in the research are involved in credit unions, and the research speaks to the broader issue of gender equality.
The research from the group Women in Financial Services found that in 2013 the percentage of women financial advisors in the Top 10 financial services firms ranged from 9.94% to 28.19%, which it has dubbed a “feminine famine.” It further found that 23% of CFP financial planners are women, and that just 7% of officials in financial services firms believe women are more likely than men to be successful financial planners.
So who are the financial services women at the top, and how are they faring? According to WIFS, 33% of the 794 women completing the WIFS Survey of Highly Successful Women in Financial Services have an annual income that would qualify for Million Dollar Round Table, compared to 6% of the industry as a whole who would qualify.
Of the 23 women featured in the book Financial Services Women at the Top, written by Arthea Reed and Diane Dixon, all earn more than$250,000 annually, most earn more than $500,000 annually; four earn more than $1, million annually, and two have earned more than $10-million in a single year.
The research also found that 61% of women responding in the WIFS Survey who earn more than $500,000 annually began their careers before age 30, and that 25 years is the average length of tenure of the 23 women featured in the book Financial Services Women at the Top. Their years in the career range from eight to 42.
Other findings featured in the book:
- 87% of the women featured in the book have achieved one or more professional designations.
- 43% have earned a CFP (Certified Financial Planner).
- 39% have earned a CLU (Chartered Life Underwriter).
- 30% have earned a ChFC (Chartered Financial Consultant),
- 26% have earned a LUTCF (Life Underwriter Training Council Fellow).
What has motivated the highest earners? According to the WIFS survey, 50% of respondents earning more than $200,000 annually report that they are more motivated by achieving their own goals and helping others succeed and less motivated by income and recognition.
The authors reported that 100% of the 23 women featured in Financial Services Women at the Top have built their businesses on referrals, and that all of them expect and some of them require their clients to give them referrals to new A+ clients. Forty-six percent of the women responding in the WIFS Survey who earn less than $500,000 have built their businesses on referrals, as compared to 25% of womenwho earn more than $500,000 have build their businesses on referrals.
Other findings:
- The 23 women featured in Financial Services Women at the Top are financial advisors or planners, wealth managers; employee benefits specialists; life insurance, disability and annuity specialists; insurance agency owners; estate planning advisors; or registered investment advisors.
- 47% of the women completing the WIFS Survey or featured in the book describe themselves as either a financial advisor or wealth manager.
- 47.8% of the women featured in the book own their own firms.
- 61% own their own offices.
- 36% of the respondents to the WIFS Survey who earn more than $500,000 annually started their careers working with a family member or a person they admired, as compared to 7.9% of women earning less than $200,000.
- 26% of the women featured in Financial Services Women at the Top started their careers working with a parent (one third of these were mothers).
- 26% have children who have entered the industry (one third of these are girls).
- 27.2% of WIFS Survey respondents earning more than $500,000 per year attribute their success in the industry to a mentor or coach, whereas 15.9% of women earning less than $500,000 attribute their success to a mentor or coach.
Other Findings About Family
- 94% of the WIFS Survey respondents earning more than $500,000 are married or have a life partner.
- 19 of the 23 in Financial Services Women at the Top are currently married or have a life partner. 19 of the 23 women have children.
- One woman featured in Financial Services Women at the Top has an office team of five professionals. In a five-year period, 10 babies were born to team members.
- 100% of the women featured in the book say that their children are and have always been their number-one priority.
- 33.5% of respondents to the WIFS SURVEY earning more than $500,000 annually believe it is more difficult for women than men to succeed in the financial services industry, as compared to 55.1% of women earning less than $200,000 annually.
- 46% of female financial planners are strongly convinced that “women have the edge over men as successful financial planners,” however only 9% of the financial advisor community as a whole agrees. (CFP, 2014)
For more info: http://www.wifsnational.org/wifs-book