The 'Great Wealth Transfer' tailored for women

Beth Lawlor, president of U.S. Bank Private and Affluent Wealth Management, is sharply focused on adapting wealth management strategies to address the specific needs of female clients in the face of the impending "Great Wealth Transfer." This monumental shift in wealth, she explains, isn't a singular event but a series of events that will unfold over time.

Women are expected to inherit a significant portion of this wealth, and Lawlor is keen on ensuring that U.S. Bank is prepared to meet their unique financial needs head-on. 

"We began several initiatives as part of our broader commitment to inclusivity and specialized, tailored service," she says, emphasizing the bank's proactive approach to inclusivity. At the core of this approach are wealth advisors, whom Lawlor likens to "the conductors of the orchestra," guiding clients through a complex web of wealth management services—from banking to wealth trust advising.

But it's not just about offering a range of services. U.S. Bank is focusing on specialized training for advisors to understand and address the specific concerns that women managing family wealth often face. For Lawlor, one of the key differentiators in how women approach wealth management is their preference for active listening and personalized communication.

“Women value that so much,” she explains. “We focus on ascertaining what level of financial expertise they have and tailoring our planning accordingly.” This is part of a broader strategy that includes creating inclusive meeting environments.”

The bank has trained its advisors to pick up on non-verbal cues, such as body language, that can offer insight into a client’s level of comfort or understanding.

“Body language matters so much, so we actually train people on that,” Lawlor adds. Advisors are taught to observe clients folding their arms or leaning in, signs that can indicate engagement or discomfort. 

Representation is also a critical element of U.S. Bank’s strategy. Lawlor proudly noted that more than half of her hires in 2023 were diverse, including women.

 "We’re not just showcasing the diversity of our team," she explains, "but also providing female clients with relatable leaders who understand their unique circumstances and aspirations."

Women’s paths to accumulating wealth are often more complex than men’s, reflecting life events that prompt career breaks for child-rearing or caregiving for elderly parents. Lawlor says these differing paths demand wealth management strategies that empower women to become effective stewards of their wealth.

“These evolving strategies are designed not just to address the wealth transfer,” she adds, "but to actively empower women to become effective stewards of their own wealth and give them that confidence." 

One of the major challenges U.S. Bank faces, however, is the entrenched family dynamics that sometimes leave women out of critical financial discussions. Lawlor expressed frustration with family scenarios that sideline a spouse or partner from financial decisions. This exclusion has long-term ramifications.

“The worst thing that happens is when the patriarch or the husband passes away, and we find that the women may be unaware of the family finances," she adds. To combat this, U.S. Bank is principled in encouraging full inclusion in meetings, and has skilled wealth coaches on staff to help navigate family dynamics. 

Beyond wealth transfer, Lawlor identified several behavioral differences between male and female investors. Women, according to U.S. Bank’s research, tend to be less optimistic about managing their money than men, although this gap is shrinking.

“Men tend to have the attitude of ‘Oh, we’ll figure it out,’” she notes, contrasting this with the more cautious approach women often take. Women are also less likely to apply for a job if they don’t meet all the criteria, a phenomenon Lawlor links to their approach to financial decision-making. 

Yet, there is a notable shift among younger generations of women.

“Younger women are more confident than older women,” Lawlor observes, attributing this change to evolving societal roles and educational opportunities. Today’s business schools are much more balanced in gender representation, she says, and this has trickled down to how younger women approach financial planning. More women in their 20s and 30s are taking charge of their financial decisions, U.S. Bank research shows, showing a higher level of engagement with their money. Still, the "engagement gap" persists, with many women not as involved with their finances as they could be, which can have costly implications. 

A relationship-based approach is essential when working with women, who tend to focus more on long-term security and the impact of financial decisions on their entire family. Lawlor noted that women typically appreciate consistent communication. U.S. Bank advisors are trained to "go at a client's pace" and prioritize what is most important to them. 

Interestingly, the bank’s research also revealed that while women value traits like financial planning expertise and active listening, they don’t overwhelmingly express a preference for female advisors.

“Just 31% of Gen Z or millennials said they prefer an advisor who is the same gender as them,” Lawlor says. Instead, they want advisors, whether male or female, who possess qualities like empathy and respect for their financial priorities. 

Ultimately, Lawlor believes that building a culture of authenticity and vulnerability within U.S. Bank not only translates into better service for all clients – both female and male – but also attracts more women to the firm.

“We’re growing women in leadership,” she adds. “It’s about a female advisor’s lived experiences that can relate to women well.”