The nation is changing. But is wealth management doing all it can to keep up?
Industry efforts to evolve alongside rapidly shifting U.S. demographics to create opportunities for the next generation of diverse financial advisors were the focus of the
Since its establishment in 2016, Diversitas has hosted a financial knowledge symposium to gather wealth management veterans and emerging talent with career influencers and students who are exploring the profession.
The goal is to build hope for young people and career changers in an industry
Diversitas has held three in-person events on the University of Akron campus. In 2020, the first national Diversitas Symposium held online attracted 22 partner universities, five corporate sponsors and more than 600 attendees.
Ultimately, Diversitas aims to make a profession predicated on helping people be more welcoming through education, mentorship and human connection. Event leaders say by shifting the focus from sales to assistance, the perception of the industry can be changed for the better.
In his welcome speech to attendees, University of Akron President Gary L. Miller said the program and its annual growth represents a crucial endeavor to diversify the industry and open the doors of opportunity.
He also said it is important to keep in mind that the financial planning programs at the University of Akron and
"This means that there is a clear pathway for today's diverse range of students, and they're prepared and poised to enter and diversify the profession," Miller said. "We encourage companies and individuals currently in the wealth management industry to continue to support our partner universities and students. That ongoing assistance will strengthen the overall endeavor of this program and its work, and foster robust relationships between higher education and the financial industry.
"I hope today's event will inspire all stakeholders to create pathways of opportunity."
Issues tackled during the free 2023 event held virtually on Wednesday afternoon included addressing the myths some believe keep underrepresented groups out of financial services; the different paths that can lead to a flourishing career in wealth management; and how to successfully navigate the industry once you've broken through.
And the slate of speakers came from leading organizations like BNY Mellon|Pershing, Cetera Investors, Charles Schwab, eMoney Advisor and more.
Setting the stage of the discussions to follow, Carina Diamond, chief growth officer of the Akron-based Dakota Wealth Management, said being a woman in the male-dominated wealth management industry has energized her commitment to foster change within the profession.
Diamond also uttered a phrase all too familiar to anyone doing this kind of work in wealth management. "We still have plenty of work to do." And the numbers continue to support her sentiment.
For example, the CFB Board began the year by
But overall, women CFPs still represent just 23.6% of all certificants, far short of a national population that is 50.5% women.
Looking at race paints a more dire picture. According to the latest U.S. Census data, the country is 13.6% Black and 18.9% Hispanic. But CFPs are just 1.9% Black and 2.9% Hispanic.
So making more significant changes will take time and require everyone to take it personally.
"We each play a role in shifting the culture of wealth management, abandoning exclusivity and embracing inclusivity now and in the future. Representation matters, and representation in wealth management matters," Diamond said. "As control of wealth across the country diversifies, it is vital that the profession emerges in a representative way to foster trust and confidence among those whose interests we protect. Unfortunately, the profession is far behind."
In addition to dishing out information to the next generation of advisors who are filling up university programs, the Diversitas Symposium took the time to point out that individuals who may not even be on the planning path today might one day represent the future of the industry.
During a panel on industry career paths with the subtitle "it's not all math, numbers, and sales" and moderated by
An attorney by trade, Porter was a sociology major before turning his life toward finance. He was introduced to the financial services industry during his third year of law school. After finishing law school and practicing for a year, the call of financial services and the chance to help the people of his community was too strong to ignore.
For him, one of the most important things someone who wants to be successful in wealth management needs is emotional intelligence, or EQ. He went on to say that EQ is not limited to a certain area of study, and certainly not confined to a specific kind of life experience.
"(Emotional intelligence) is defined as the ability to manage your own emotions in a positive way, communicate effectively, empathize with others, and the ability to overcome challenges and defuse conflicts. So think about that," Porter said. "If you have the EQ to acknowledge that folks are going through things, but then also have the ability to champion and motivate those individuals, that's where you're going to find success. Not only in our field, but I think many others as well.
"Never underestimate the force multiplier factor of likeability. If you can get on someone else's level and understand where they're coming from … you are going to be much more likable in corporate America. And I think that's an attribute that is overlooked."
Fellow panelist
But being a young woman stepping into such a male-dominated space, there were many times where she felt intimidated.
"Down to this silly stuff of, 'My goodness is this something that is appropriate to wear as a female? Will they take me seriously?' Which for others may not even be a consideration, but I would find myself just overthinking it constantly to really kind of gain my confidence," Koochel said.
Koochel then shared a personal story from her career — one she offered to not scare anyone away, she said, but to present it as a learning opportunity and a source of motivation when the road inevitably gets rough.
Koochel said early in her career she was working at a firm and did a lot of work crafting financial plans. And finally, she had the opportunity to be inside of a client meeting, something she was hungry for at that point in her journey.
However, the excitement she felt was replaced by discouragement when the male client said he would not listen to a woman and asked her to leave the room. Koochel had done most of the work on the plan and was the best person to present it. Still, she left the office.
But the lead advisor stepped out of the office as well, found Koochel and brought her back into the meeting. The advisor then explained that Koochel was more formally educated than he was, more familiar with the plan and the only person who could properly break it down.
For her it was proof that her hard work was paying off, and a reminder that one person's bigotry cannot stop your progress.
"Something that I think is critically important is if we are going to talk about diversity, if we're going to talk about gender, if we're going to talk about the disparities that exist, that you also find the fit for you where people are showing that and they're taking action," Koochel said. "And if you are the trailblazer there, I think that's wonderful. If you are the person that already has some of those representations in place, I say go forth and continue to elevate that conversation."
