The Gender Investment Gap: A Call to Action
A recent survey conducted by NerdWallet revealed a striking disparity in investment habits between genders: only 48% of women in the U.S. invest in the stock market, compared to 66% of men. This gap highlights a significant issue in financial literacy and access, prompting organizations like Ellevest to take action.
Ellevest: Empowering Women in Finance
Ellevest, a financial services company "built by women for women," aims to change the narrative surrounding women’s investment habits. Founded in 2014 by Sallie Krawcheck, a former CFO of Citigroup, and Charlie Kroll, Ellevest is on a mission to empower women and other underrepresented groups by providing tailored financial advice and investment management.
Amanda Polcari, Ellevest’s director of people operations, emphasizes that the traditional financial services industry was predominantly designed by men, which inadvertently excluded women. This exclusion has led to a lack of products and services that cater to women’s unique financial needs.
Bridging the Gender Wealth Gap
Ellevest operates as a robo-advisor investment platform, utilizing algorithms to offer personalized financial advice. The platform also serves as a financial literacy program, primarily targeting women. By educating women about investing, Ellevest aims to bridge the gender wealth gap and encourage more women to take control of their financial futures.
As of March 2021, Ellevest managed $1 billion in assets and had approximately 123,000 clients. While current figures are not disclosed, the company’s growth trajectory indicates a rising interest in women-focused financial services.
A Shift in Talent Acquisition
The fintech landscape is witnessing a surge of interest from Wall Street talent seeking more flexible work environments. Ellevest is not only looking for financial advisors but is also expanding its team across various departments, including client experience, product engineering, and marketing. Polcari notes that the company is committed to hiring individuals who align with its mission and values, emphasizing the importance of "culture add" over "culture fit."
Inclusivity in Hiring Practices
One of Ellevest’s core beliefs is that the financial services sector has not been inclusive enough. Polcari states that the company seeks candidates who can bring diverse perspectives and experiences to the table. This approach is particularly important in an industry where women hold only 23% of C-suite positions, despite comprising 52% of entry-level roles.
Ellevest’s onboarding process includes comprehensive training sessions about finance, ensuring that all employees, regardless of their prior experience, have the knowledge they need to succeed. This commitment to education is part of a broader strategy to create an inclusive workplace where everyone can thrive.
Encouraging Diverse Applications
Ellevest has streamlined its application process to encourage a wider range of candidates to apply. Instead of requiring cover letters, applicants only need to submit a résumé and answer a questionnaire about their interest in the company. The interview process is designed to be inclusive, involving team members from various departments to assess candidates holistically.
Polcari encourages potential applicants to apply even if they don’t meet every requirement. "One of Ellevest’s core values is diversity as an asset," she explains. The company recognizes that differing viewpoints and backgrounds are crucial for building a successful organization.
The Importance of Financial Literacy
Ellevest’s mission extends beyond just investment management; it encompasses a broader goal of enhancing financial literacy among women. By providing accessible resources and support, the company aims to empower women to make informed financial decisions. This educational approach is vital in a landscape where many women feel intimidated by traditional financial institutions.
A New Era for Women in Finance
As Ellevest continues to grow and innovate, it stands as a beacon of hope for women looking to navigate the complexities of investing. By addressing the gender investment gap and fostering an inclusive environment, Ellevest is not just changing the financial landscape for women; it is redefining what it means to invest in the modern world.