The rise of women in financial planning: How it's going

When it comes to addressing the underrepresentation of women in financial services, much has been achieved but much work remains. 

Ten years ago, CFP Board Center for Financial Planning founded the Women's Initiative (WIN), dedicated to bringing more women into the field. Also in 2013, the center published a landmark report identifying common barriers to entry for women in wealth management and recommended ways to boost the number of women CFP professionals. 

Since then, progress has been steady, with every year since 2016 seeing rising numbers of women CFP professionals. In 2022, women made up nearly 30% of all new CFP professionals and 23.6% of total CFP professionals — a 4.4% increase over the previous year. To keep this momentum going, this year the center established a WIN Endowed Scholarship program to provide financial assistance to qualified female students and professionals seeking to complete their CFP certification. 

Yet several factors that caused women to decide against careers in financial planning a decade ago remain at play today, including gender bias, concerns about business models and inconsistent compensation structures. In a 2022 study by the Carson Group, nearly 90% of women reported they encountered additional barriers to success when compared with men in the financial planning ecosystem. More than half felt balancing professional roles with caregiving obligations, finding a firm with a good culture fit and finding a mentor were barriers their male counterparts didn't face.

Knowing vs. doing
Cultivating a strong pipeline of future female CFP professionals will help usher in the next generation of leaders. These leaders will not only increase women's representation in the profession but will also strengthen the profession's sustainability by allowing the workforce to better reflect and represent the communities it serves. As CFP Board CEO Kevin Keller has said, "The more women we bring into the profession and encourage to become CFP professionals, the more will follow, and the more financial advisory firms and clients will benefit from their expertise and counsel."

Countless studies show that greater diversity in the workplace across genders, races, ethnicities and age groups leads to enhanced customer growth and higher profit levels. However, when we compare this evidence with the relative lack of progress, there is a clear "knowing-doing gap," which suggests that business leaders are struggling to design and implement programs that effectively build a diverse workforce. 

It's ironic because women can be particularly well-suited to a career in financial planning. Women often possess stronger interpersonal skills — key for counseling clients through the most sensitive and pivotal times in their lives. A 2021 Aite Group study found that women CFP professionals tend to be more invested in the financial planning process, deliver more comprehensive financial plans and are more likely to give their clients retirement and estate planning advice than their male counterparts. 

Gender diversity in the talent pipeline  
The first step to increase gender diversity in the talent pipeline is for leaders to acknowledge these barriers. Long-standing professions like financial planning face a tremendous challenge in diversifying a historically homogeneous workforce. Organizations must look beyond existing talent networks and transform legacy hiring models, designing initiatives to increase engagement of women across the workforce.

Bringing more women into financial planning requires consistent investment in DEI efforts from firms and from other organizations across the financial planning ecosystem. And it requires an ongoing commitment from CFP Board. To that end, the WIN Council works to attract, develop and advance women in financial planning careers, and it provides educational resources and networking opportunities. WIN today represents a key pillar of the center's work, engaging over 400 volunteers who strive within their organizations and communities to raise awareness and speak to the benefits of the profession. 

READ MORE: 3 ways for firms to win more female financial advisors

Leaders across the industry must better understand women's differentiated needs and provide necessary support and resources. To reduce or remove barriers to certification, and to help women professionals advance their careers in general, mentorship as part of CFP Board's Financial Planner Re-Entry Initiative (FPRI) has proven to be especially important. Mentees receive one-on-one assistance, encouragement and help with test-taking tools.

Despite their very real concerns, many female CFP professionals have found that financial planning offers them access to career opportunities that meet their individual interests and professional needs. Post-pandemic flexibility, including remote work and flexible hours, has enabled some women in financial planning to balance professional and family responsibilities more effectively without giving up the possibility of higher compensation.  

As we celebrate the first decade of the Women's Initiative and its incremental achievements, we must work toward even greater progress over the next decade. One of the most rewarding aspects of becoming a financial planner is helping others achieve their goals and improve their quality of life. We're committed to increasing women's opportunities in financial planning, promoting their engagement and expanding their influence in the profession.