DyMynd™ cracks the code on the level of engagement high net-worth women crave but aren’t getting
More high net-worth women are opting out of traditional adviser relationships because they don’t like the way they are treated by financial institutions and advisers, according to a new study by DyMynd™.
To crack the code on women and finance, DyMynd™ conducted a year-long study of 60 Chicago-area women who have an average net worth of $3.4 million. The participants are of diverse ages, occupations and racial/ethnic backgrounds. Forty-eight percent said they are ready to engage a financial adviser but most (70%) said they prefer to be self-directed, because:
• No one seemed to want to work with them
• They have been unable to find an adviser who meets their expectations
• There is a level of mistrust of the sector
• They don’t feel valued as a customer
• African American women and Millennials are abandoning traditional adviser models
“They are highly educated and professional, but are pretty much invisible to the financial sector,” said DyMynd’s founder and CEO Carolyn Leonard, who encountered gender bias as a trader in the mid-1970s. “Stereotypes remain about women in finance; the women we interviewed defy stereotypes. They want to create wealth for themselves and their extended care networks. We call that ’emotional financial security.’ There is a real opportunity for the financial sector to engage.”
The study informs DyMynd’s newest product, the Financial Identity Assessment tool, developed to help financial institutions and advisers attract and cultivate successful relationships with female investors.
What Women Want:
• 85%: The majority of DyMynd™ women say they are willing to work with an adviser who can provide a better experience
• 32%: Said they would like to have a more personal relationship with their financial adviser
• 30%: Want an adviser who understands the extent of their care networks
• 26%: Want acknowledgment of their concerns around “emotional financial security”
• 25%: Have specific service needs they want met
“Even though women told us that they want to have a more personal relationship, they don’t have to see you face-to-face every time,” said Monika Black, Ph.D, DyMynd’s co-founder and chief strategist. “They just need to know that you get it and that they can trust you.”