Harnessing emotional intelligence: Why women make great advisers

It’s no secret that the financial services have long been considered male dominated. Indeed, it is still true today that 83.7% of financial advisers are male.

However, each year, more and more women are entering the workforce. As the number of female advisers builds, so does our understanding of their importance.

Gender differences infiltrate every aspect of our lives – particularly when it comes to finances. While both men and women deal with money daily, the latter are often left out of important conversations around long term investments. Women must be included, educated and encouraged to get involved with their finances as well as the opportunity that exists for them within the sector.

With an advice gap of over 50,000 advisers, there has never been a better time to train to become a financial adviser. Since its inception, St. James’s Place Financial Adviser Academy has an average of 26% female advisers entering the programme each year. We are passionate about bringing more women into the workforce, for their new perspectives, unique skillsets and different approaches that are invaluable to the profession and clients alike.

So… why do women make great advisers?

Women are likely to have higher emotional intelligence from extensive socialisation as children and through adulthood

Women have been associated with higher levels of emotional intelligence and empathy, which are essential components of communication – particularly around sensitive subjects such as money.

Additionally, life events such as divorce and bereavement often intersect with the need for financial advice, meaning that advisers need to be able to respond and react to their client’s needs – both emotional and financial. Empathy is crucial in achieving this.

Women approach risk differently than men

While investment approaches and preferences will differ from person to person, there is a sizeable difference in the treatment of risk between men and women. Having female financial advisers enable clients to access different perspectives and suggestions which is important in achieving the best possible client outcome.

Women often feel more comfortable sharing personal information with other women

Honesty is crucial for a successful relationship between financial adviser and client. Particularly in cases of divorce or abuse, some female clients may feel more comfortable working with a female adviser. We tend to trust people that we can relate to, so having an adviser who is also a woman can provide some comfort in an unfamiliar environment and situation.

Advisers need to reflect their client bases

With women making up half of the population, it is important that they are accessible and present within the financial workforce. Representation and the diversity of perspective create a vibrant and thriving advice community.

Women are generally more detail oriented and risk-aware

Women, especially those with children or experience running a household, will have accumulated several crucial skills such as the ability to anticipate and solve potential problems. This can make them a thorough, reliable, and effective financial adviser.

Women have excellent relationship building skills

Women are socially skilled, communicative, and good at building relationships with others, which is important in a role that's all about doing just that! Relationships sit at the heart of financial advice, so being able to establish strong ones with clients is important.

Their communicative and collaborative approach

Female advisers tend to have a more collaborative approach with their clients. They often prioritise explanation and client understanding in their meetings, making them excellent advisers and very accessible.

The importance of equality in the workplace is something that cannot be overstated, particularly when there is a large pre-existing gender gap. Research carried out by The Guardian revealed that within 2 years, women are predicted to own 60% of the UK’s wealth. Female wealth is growing so the number of female advisers must too.