Does wealth management still need to attract a higher proportion of women?
Wealthy women are not happy with the service provided by their private bankers, with the majority feeling like "second class clients", according to a new survey. In this (still) largely male-dominated industry, should firms be looking to increase their female staff base?
A survey by Boston Consulting Group says that 55% of women felt their wealth managers could be doing a better job, with many "dumbing down" investment choices and making assumptions on their tolerance for risky investments.
"The dissatisfaction stems from the unshakable perception that men get more attention, better advice, and sometimes even better terms and deals," said Peter Damisch, a BCG partner and a co-author of the study.
This may in part be down to the fact it's still a male-dominated industry, in this area of the world anyway. In Western Europe, just 25-30% of relationship managers are female, according to BGC estimates, compared to 60-65% in Asia and Eastern Europe.
One benefit of employing women RMs is that are very good at forming relationships "because they tend to be more empathetic and are more likely to establish a personal connection with the client," says BCG.
Renewed focus on female recruits?
"There is still an argument for wealth managers to actively recruit women, in part to increase diversity in the workforce but also to capitalise on female RMs' strengths when it comes to building relationships," it adds.
So, are wealth managers actively looking to increase their female contingent? Not particularly.
"There's a drive to attract women to roles within certain firms in the Middle East, but any sensible organisation recruits on talent and ability rather than gender, which really shouldn't be an issue either way," says Dudley Edmonds, director of wealth management headhunters Dudley Edmonds.
Last month, for example, Al Bashayer Investment Company - a wealth manager targeted at women investors in the Gulf - kick-started its operation. UBS also has a dedicated team of women advisers aimed at female investors in the region.
Certainly there's no shortage of prominent women in the industry, such as Marianne Hay at Standard Chartered, Soha Nashaat and Stefanie Drews at Barclays Wealth or Nathalie Dauriac-Stoebe, formerly senior client partner at Coutts & Co and now CEO of Signia Wealth.
Nonetheless, in an industry where retaining client money is largely down to individual relationships rather than company loyalty, potential career breaks for maternity leave remain a slight bone of contention, suggest recruiters.
Firms can: "make it easier to attract and retain female advisors through teaming or job-sharing models, which ensure continuity for both the client and the bank when an advisor takes maternity leave, for example," muses BCG.
