Pershing Warns That Ignoring Women's Market Poses Significant Business Risk for Advisors

March 27, 2012

JERSEY CITY, N.J. — Pershing LLC, a BNY Mellon company released a new guidebook today entitled, "Women Are Not a 'Niche' Market. They Are a Significant Business Opportunity," which highlights the increasingly complex and relevant role women play in the consumer investment market. The guidebook, based on the findings from the Sullivan Trust Study, examines women as a key market for advisors to grow and maintain their business.

Once viewed as a niche market in the investment industry, significant social and economic trends are gradually putting more women investors in the driver's seat. As women now comprise nearly 60% of the U.S. workforce and more than half of married women with business-related degrees out-earn their husbands, advisors without successful approaches for serving this market are at a clear disadvantage.

"Women represent a crucial client opportunity, both because of their expanding economic power and their frequent dissatisfaction with the service they currently receive," said Kim Dellarocca, director at Pershing, "As women’s financial situations have changed, so have their ability to entrust significant assets to investment professionals who are able to serve their needs."

Women Are Less Satisfied Than Men

According to the Sullivan Study, women as a group are less satisfied than men with the performance of their investment professionals.

  • 49% of women said their advisors focused on "making me a smarter investor," compared with 60% of men.
  • And only 57% of women said their advisors "clearly articulate downside risks of investments," compared to 66% of men.

Women want equal treatment from their investment professional. The findings show an opportunity for advisors to build trust with women investors by opening the channels of communication and providing holistic advice on their investments.

Increasing Spending Power

Additionally, the study finds that women control roughly two-thirds of annual spending in the U.S., which adds up to about $12 trillion.

  • About 80% of women will be solely responsible for household financial decisions at some point in their lives.

Considering that financial professionals today are concerned with ways to stay competitive, stay profitable and grow their business, this is an area that should not be overlooked.

The guidebook, which is the first of a three part series by Pershing providing insight and advice on specialty markets, offers several ideas to develop strategies that can help advisors secure and service women clients at every stage of their lives. Pershing also provides insight from women investors that can help advisors change their approach to their clients and prospective client base and break down the barriers that keep women unsatisfied with the performance of their investment professionals.

About Pershing

Pershing and its affiliates provide global financial business solutions to advisors, asset managers, broker-dealers, family offices, registered investment advisor firms and wealth managers. A financial services firm located in 23 offices worldwide, Pershing provides business-to-business solutions to clients representing 6 million active investor accounts on the U.S. platform. Pershing affiliates are members of every major U.S. securities exchange, and its international affiliates are members of the Deutsche Börse, Australian Stock Exchange, Irish Stock Exchange, London Stock Exchange and Toronto Stock Exchange. Pershing LLC (member FINRA/NYSE/SIPC) is a BNY Mellon company. Additional information is available on pershing.com, or follow us on Twitter @Pershing.

About BNY Mellon

BNY Mellon is a global investments company dedicated to helping its clients manage and service their financial assets throughout the investment lifecycle. Whether providing financial services for institutions, corporations or individual investors, BNY Mellon delivers informed investment management and investment services in 35 countries and more than 100 markets. As of March 31, 2016, BNY Mellon had $29.1 trillion in assets under custody and/or administration, and $1.6 trillion in assets under management. BNY Mellon can act as a single point of contact for clients looking to create, trade, hold, manage, service, distribute or restructure investments. BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation (NYSE: BK). Additional information is available on www.bnymellon.com. Follow us on Twitter @BNYMellon or visit our newsroom at www.bnymellon.com/newsroom for the latest company news.