Research Reveals: New Ways of Approaching the Financial Services Profession

New Inroads with Black Women

In late 2021, the American College Center for Economic Empowerment and Equality finalized and released a study based on the first pillar of the Center’s Four Steps Forward initiative – to provide empowerment and educational opportunities to Black women. As Black women are often considered the gatekeepers of their families and communities, understanding their needs and situations is key to addressing the persistent issues of inequality that adversely affect the Black community as a whole.

The study's results were revealing and continue to make waves across the industry. As a result of this leading industry research, The College took home the 2022 WealthManagement.com Wealthies Award for Industry Research Provider. A second phase of research focused on Black women will begin in 2023.

Solving for Public Trust

At the same time, the American College Cary M. Maguire Center for Ethics in Financial Services was conducting a parallel study: this one focused on the general state of trust in the financial services industry. Fourteen years after the 2008 financial crisis, the research found reasons for optimism after interviewing consumers nationwide, but also areas where the industry still has a long way to go.

The results show the industry has made progress in recent years, but more still stands to be accomplished by financial professionals. Among the pressing proof points are greater transparency, simplicity, and focus on cultivating relationships that transcend transactions.

Identifying Barriers to Career Success

The American College Center for Women in Financial Services built on the theme of forming connections with important communities through their own study aimed at financial advisors rather than consumers or the general public. The research was designed to understand advisors’ perceptions of success and to help financial services companies in their efforts to recruit, support, and retain financial professionals.

Advisors were prompted to self-identify their level of success as financial professionals and explain the reasons for that success or lack thereof, as well as what they needed to feel more successful and happier in their work. The results across the board were mostly encouraging: 7 in 10 advisors identified themselves as successful by their own personal metrics or by their ability to meet their employers’ business goals.

A Drive Toward Evolution

This triad of studies clearly shows the industry must take calls for greater community involvement, communication, education, and transparency seriously. Clients and advisors want more than a strict business relationship in financial services: instead, they desire a  partnership built on trust, respect, and opportunities for continued growth. As the financial planning landscape continues to shift and change, it is up to industry leaders to open new doors and walk through them.

Read this story and more in our 2022 President’s Report.