Women Advisors Now Make Up 24% of Workforce. There’s a Long Way to Go

Women advisors aren’t just breaking the glass ceiling, they’re rebalancing it quarterly.

Some 24% of all financial advisors are now women, marking a significant uptick in representation over the past decade in an industry that has long been dominated by navy suits and Patagonia vests. While representation remains heavily uneven, a new report from AdvizrPro suggests there has been significant progress, particularly within team-based firms, larger institutions and firms with formal recruiting or mentorship programs. “It’s critical to support career paths for women, as many female clients prefer to have a female financial advisor,” said Alexandra Rooney, a CFP and advisor at Main Street Research. 

Seat at the Table

Not only is increasing gender diversity a win for workplace equity, but it’s also good business. Women live longer than men, and studies have shown that the vast majority will fire their financial advisor after their spouse’s death. By welcoming more female financial advisors, firms can retain assets that would otherwise be lost, Rooney said. 

“We need to continue to explain how female advisors can impact the industry and, at their core, help women and families achieve their financial goals,” she said. The research also found:

• Wirehouses led the way, with just over 30% of advisors identifying as female, likely boosted by recruiting programs, formalized onboarding and diversity initiatives.
• IBDs followed closely behind at 28%, possibly benefiting from flexible work models that appeal to advisors at different career and life stages. 
• RIAs lagged behind at just 18%, as smaller shops may still be using historical firm ownership patterns and are slower to adopt new recruiting practices. 

Still, women are taking on greater leadership roles in the indie channel. The proportion of firms with female ownership is much higher, suggesting that independent firms offer more accessible paths to leadership. Just over 23% of RIA firms have at least one female owner or executive, according to the study. 

Progress, Shmogress. Not all advisors agree that making incremental upticks in workplace diversity is enough. “This is not progress,” said Lisa Kirchenbauer at Omega Wealth Management, adding that the industry has maintained numbers close to these for years. “Someone needs to figure out why we are not making more progress.” It’s a major problem, especially since some clients prefer to work with an advisor who has had similar life experiences. “With 51% of the population being women, we need to figure this out,” she said.