It’s no secret that women are earning, inheriting and handling more wealth than ever before. By 2028, women are projected to control nearly $4 trillion in financial assets, or almost half the total wealth in this country.
Yet, men still hold an overwhelming proportion of financial advisory roles in Canada, at 80%–85%. Men’s dominance in the industry stems from a complex combination of societal norms, gender bias and systemic barriers that continue to persist. These harm not only our society but also our economy.
Consider this: If wealthy women represent the next big client opportunity, is your firm ready to meet their unique needs? Women often have distinct financial needs and priorities compared with men, and use different decision-making and risk-assessment strategies when considering their investment portfolios. Additionally, studies consistently reveal that women increasingly prefer to work with women financial advisors.
There’s no doubt that a more equitable representation of women in advisory roles would benefit women as well as the firms they work for. It seems so simple. And yet, why aren’t more women stepping onto this career path?
As Canada’s largest network of women in finance, VersaFi sought to find out. And we did it not by asking industry veterans or executive teams but by going straight to the source of tomorrow’s workforce: women finance and business students at universities across Canada. These students represent the next pool of financial advisor candidates, equipped with the education and skills needed to excel in wealth management.
What we found was disheartening. Wealth management is losing young women before they even begin, and it’s not because they don’t know the field exists; it’s because their negative perceptions of the job discourage them from considering wealth management as a viable career path.
It’s well known that women are making career decisions earlier than ever. Their impressions of industries — formed during their university years — are shaping not only what roles they pursue after graduation but whether they consider certain fields at all.
When it comes to wealth management, we found that many women students never get on the path to acquiring the experience and skills needed to enter the field, because they already think of it as male-dominated and traditional (63%), highly competitive and hierarchical (54%), and associated with analytical, risky work that feels inaccessible or unappealing (54%). For many students, these perceptions make the job feel like a bad cultural fit.
These impressions don’t arise in a vacuum. The Wolf of Wall Street stereotype continues to shape negative perceptions of the finance industry. And this is compounded by the lack of visible, vocal women in senior roles sharing their stories of success. For many of the students we studied, wealth management is perceived as driven by competition, rather than by the collaborative culture they say they value.
Our research revealed that women students overwhelmingly value collaborative and inclusive workplaces. More than eight in 10 (86%) said they want to work in environments free from bias, where they feel valued and supported. Another three-quarters (77%) said that flexibility and work-life balance are crucial to their career satisfaction.
Interestingly, an emphasis on entrepreneurship and independence — a cornerstone of traditional wealth management recruitment — didn’t resonate with these students. Only 16% of them expressed interest in becoming entrepreneurs, and just 3.5% said they preferred working independently. (Watch for the full report on versafi.ca.)
It’s clear that this disconnect is driving talented women students away from wealth management and toward industries that align more closely with these values.
We recognize that the wealth management industry has taken steps to attract and retain more women and diversify its advisor base. However, much of the focus has been on recruiting professionals with prior experience and, while valuable, this approach misses a key issue: Many women are deterred from considering wealth management early on, leaving them without the skills and networks needed to advance.
This creates a self-perpetuating cycle. Women aren’t entering the field early enough, and, by the time firms seek experienced candidates, the pool of qualified women is small.
To truly close the gender gap, the industry must start earlier by reshaping how students perceive wealth management and actively guiding them toward success. This includes engaging and partnering with finance and business faculties, and actively participating in campus events like guest lectures, career fairs and panel discussions.
Featuring successful women advisors as speakers and mentors on campus can also help demystify the field and inspire students to see themselves in the profession, as can offering more internships and co-op programs. Eighty per cent of the students we surveyed said that internships are crucial to their professional growth. Firms that invest in these programs not only attract talent but also build pipelines of future advisors.
Perhaps most importantly, the industry needs to consider that women finance students want flexibility, collaboration and inclusivity in their future workplaces. It’s important that firms not only communicate these values but demonstrate them through their policies and leadership.
With the upcoming transfer of financial power to women, a huge opportunity exists for wealth management firms to double down on efforts to accelerate change. The next generation of talented women business and finance students are already deciding where their futures lie. Be sure you’re actively engaging with them.
Tanya van Biesen is CEO of VersaFi.