Financial advice is often viewed as objective and numbers-driven, but a new study co-authored by Associate Professor Daniel Richards suggests conversations between financial advisers and clients can be shaped by deeply rooted gender assumptions.
Through in Critical Perspectives on Accounting, Richards and co-author Ariane Agunsoye from Goldsmiths, University of London, wanted to better understand how financial advisers observe and respond to gender norms in their interactions with clients.
In personal finance, explains Richards, those norms often take the form of assumptions about how men and women think about money, investing and risk. For example, women are often perceived as less financially knowledgeable and more risk averse, while men may be assumed to be more interested in technical financial information and willing to take greater risks.
"The research question we had then was given that there are gendered connotations in personal finance, how do financial planners work with these when providing advice?" says Richards, who teaches personal finance planning in the Faculty of Liberal Arts & Professional Studies.
To explore, the study authors conducted interviews with 30 independent financial advisers in the United Kingdom. They spoke with practitioners about how stereotypes shapes client interactions, what differences they observe among clients and how those observations influence the guidance they provide.
The interviews revealed that professionals do not all respond to those perceptions and assumptions in the same way.
"Some approaches reinforce the gendered aspects of personal advice and some approaches undo the gendered aspects of personal finance,” says Richards.
The researchers identified four broad approaches advisers use when encountering gender in financial advice. Some took a "uniform" approach, treating all investors the same. Others adapted their communication style and recommendations based on men or women, often emphasizing technical information with men and reassurance with women. A third group used an in-depth educational and research-based approach to challenge gendered assumptions about financial capability and risk taking. A fourth “disruptive” approach purposely challenged traditional industry norms by prioritizing inclusion, accessibility and empowerment.
These approaches could shape client experiences in different ways, the scholars found. For example, efforts to tailor services to individuals can sometimes unintentionally reinforce stereotypes. Advisers may focus on performance metrics and technical details when speaking with men while emphasizing reassurance and life goals when working with women. While intended to meet investors’ needs, these approaches can perpetuate assumptions about gender and financial behaviour.
However, the study also found some professionals use financial education as a way to challenge traditional expectations, helping clients build confidence in financial decision-making regardless of gender.
According to the team, some advisers viewed differences in financial behaviour as being shaped by experience, financial knowledge and social expectations rather than inherent differences between men and women. In some cases, they found that greater education and understanding could help clients become more confident in their financial decisions.
As more people rely on financial advice to navigate major life decisions, Richards says those findings highlight the importance of guidance that is tailored to an individual’s circumstances rather than assumptions about gender.
The researchers argue that financial services organizations should invest in adviser training that goes beyond technical expertise to recognize how stereotypes norms can shape client interactions. Greater awareness of these dynamics, they suggest, could help firms build more inclusive practices and support more equitable financial outcomes. As financial planning becomes increasingly important in helping individuals prepare for the future, understanding how gender norms influence advisor-client interactions could help ensure people receive guidance based on their goals and circumstances rather than long-standing assumptions.