Wake Up, Lady: You Can Invest!
How Women Are Changing Wealth Management

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In the traditionally male-dominated world of wealth management, a quiet but powerful revolution is underway, led by women who are determined to reshape the industry’s landscape. Debra Ohstrom, a veteran of the financial sector with over 25 years of experience, is at the forefront of this movement. Her work is focused on addressing the unique challenges that women face in the financial world and on empowering both female clients and the advisors who serve them.

Key Findings:

• The wealth management industry remains predominantly male, with women significantly underrepresented in client-facing roles.
• Financial advisor roles often present financial and structural barriers that deter women from entering the profession.
• Communication gaps between male advisors and female clients can lead to misunderstandings and dissatisfaction.
• Women are poised to control trillions of dollars in wealth over the next decade, presenting a significant opportunity for the industry.
• Targeted educational events and training can help bridge the gap and make financial services more accessible to women.

Breaking Barriers in a Male-Dominated Industry

The wealth management industry is characterized by a stark gender disparity, with roughly 80% of financial advisors being men. This imbalance not only affects the industry but also the clients—particularly women—who are underrepresented in client-facing roles. Debra Ohstrom has identified this as a critical issue that needs to be addressed if the industry is to serve all clients effectively.

One of the key challenges is that many women face financial and structural barriers when considering a career in wealth management. Financial advisor roles are often commission-based with low initial compensation, which can be a significant deterrent for women, especially those with family responsibilities.

“Shifting over to be a financial advisor means going through three to five years of very low compensation, which many women, especially those with children, may not be able to handle,” Debra explains. This financial hurdle is a major reason why more women aren’t entering the profession, perpetuating the gender imbalance.

The Communication Gap: Understanding Women’s Needs

Debra also highlights a critical communication gap between male advisors and female clients. Men and women often use language differently, which can lead to misunderstandings in financial discussions. Men tend to focus on establishing their expertise, while women prioritize building trust and connection.

“Women want to feel understood and respected, whether they have a career or not,” Debra says. She believes that understanding and addressing the specific concerns and fears that women have about their finances is crucial. Many male advisors make the mistake of rushing to showcase their expertise without first building a rapport with their female clients. This approach can alienate women, making them feel like their concerns aren’t being fully heard.

The Business Case for Targeting Women

Beyond the moral imperative, there’s a compelling business case for financial advisors to focus on serving women better. Women are poised to control a significant portion of the nation’s wealth in the coming years. The “great generational wealth transfer” will see trillions of dollars passing into the hands of women, many of whom will outlive their spouses and inherit their wealth.

“Women will be in control of something like $30 trillion in the next 10 years,” Debra says. This shift presents a significant opportunity for the industry, yet many women remain frustrated with the financial advice they receive. Studies have shown that women often feel patronized by their advisors, leading some to disengage entirely from the financial planning process. This disengagement isn’t just a missed opportunity for women; it’s also a significant loss for the advisors who fail to connect with this growing market.

Creating a More Inclusive Industry

To bridge the gap, Debra advocates for more women-only educational events, which she believes are crucial for making financial discussions more accessible and less intimidating for women. “Women-only events are better because they remove the pressure women often feel in mixed-company settings,” she explains. These events encourage open dialogue and help women feel more comfortable asking questions and sharing their concerns.

Debra also works closely with advisor teams to provide a female perspective, ensuring that women clients feel represented and understood. “Roughly 55% of advisor teams in the country have no women on them,” she notes. Having a female presence in these teams can make a big difference in making financial services more approachable for women.

Looking Ahead: The Road to Change

As the wealth management industry continues to evolve, Debra remains committed to her mission of creating a more inclusive environment for women, both as clients and as professionals. The positive feedback she’s received from male advisors who have embraced her training and seen the benefits of a more inclusive approach is a testament to the impact of her work.

“Many of my former colleagues, mostly men, have been incredibly supportive,” she says. “They see the value in what I’m doing, and it’s encouraging to know that we’re starting to make a difference.”

However, Debra is also aware of the challenges that lie ahead. Changing an industry as entrenched as finance isn’t easy, but she remains committed to her mission, one advisor at a time.

For Debra, the ultimate goal is clear: to create a financial industry where women are not only present but are also empowered, both as clients and as professionals. And as she continues to advocate for change, her message is loud and clear: “Wake up, lady, you can invest!”