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Significant Gaps Remain in Hispanic Advancement

Pathfinder Winners Describe Our Industry’s Progress For The Hispanic Community And What We Must Do Next
By Janeesa Hollingshead
https://wealthsolutionsreport.com

Every installment of the Pathfinder Awards serves a dual purpose – not only calling out excellence and achievement in executives, professionals and organizations, but providing a platform for the voices of members of underrepresented communities to address the industry on topics of diversity, equity and inclusion.

In this month’s Pathfinder Awards – Top Hispanic Industry Leaders of 2024 in recognition of National Hispanic Heritage Month, we bring you the views of four Pathfinder winners on Hispanic advancement in our industry: Diana Cabrices, CEO at Diana Cabrices Consulting; Jeff Concepcion, Founder and CEO of Stratos Wealth HoldingsMichael G. Perez, Managing Director, Consulting – Family Office Practice at F2 Strategy; and Erika Wilson, Chief Marketing Officer of Sound Income Group.

We asked each of them: What is the state of the wealth management industry with regard to the advancement of the Hispanic community, and where is our industry lacking? What steps can industry participants take to further progress?

Their responses follow.

Diana Cabrices, CEO, Diana Cabrices Consulting

The wealth management industry has made strides in recognizing the Hispanic community’s value and needs, but significant gaps remain.

There is growing acknowledgment of the importance of financial literacy and inclusion initiatives aimed at Hispanic individuals and families. Technology-driven solutions are helping democratize access to financial tools and advice. We’re seeing more culturally relevant content produced by industry leaders.

However, there is still a lack of Hispanic professionals represented in wealth management senior leadership positions. This limits the industry’s ability to fully understand and serve the Hispanic community’s unique needs, such as multigenerational planning and bilingual client services.

Additionally, trust in financial institutions remains a challenge in many Hispanic communities, partly due to historical underrepresentation and a lack of outreach. These barriers must be addressed to create an equitable and inclusive financial future.

To further progress, the industry must take deliberate steps toward inclusivity at all levels. This includes fostering diversity within firms by actively recruiting and promoting Hispanic professionals into leadership roles and developing mentorship programs that support upward mobility. More financial education initiatives, particularly those that are bilingual and culturally relevant, are essential to build trust and engagement within the Hispanic community.

Wealthtech firms can play a pivotal role by continuing to innovate with products and services tailored to Hispanic clients as well as by offering seamless, accessible and cost-effective financial planning solutions. Finally, collaboration among advisors, technology providers and community organizations is vital in building lasting relationships and closing the wealth gap in the Hispanic community.

Jeff Concepcion, Founder And CEO, Stratos Wealth Holdings

The wealth management industry has made modest progress in hiring Hispanic advisors and serving the Hispanic community, but there is still work to be done. The demographics of financial advisors do not yet reflect the populations they serve.

Many in the Hispanic community who accumulated wealth are less exposed to financial advisory services than other groups, which presents an opportunity for education around financial planning tools to support generational wealth transfer. This same lack of exposure affects how our community views careers in wealth management.

However, firms and advisors are making efforts to bring more diversity into the industry. At Stratos, we support initiatives like the SER Latino Advisor Summit, and our teams – such as Stratos affiliate Heritage Financial Partners – are sponsoring internship programs to foster industry diversity.

While there is still a long way to go, we are moving in the right direction. For meaningful progress, industry-leading firms must continue to engage and drive change. I feel encouraged not only by the progress made by Stratos, but by our broker-dealer, LPL Financial, which has meaningful initiatives around diversity.

Michael G. Perez, Managing Director, Consulting – Family Office Practice, F2 Strategy

The wealth management industry has made strides in embracing diversity and advancing the Hispanic community. However, despite making up 19% of the U.S. population, Hispanic professionals account for only 8% of the corporate workforce, with an even smaller percentage in senior leadership. In financial planning, less than 4% percent of Certified Financial Planners are Hispanic. While entry-level representation has improved, the climb to the top remains a challenge, largely due to the lack of mentorship, access to capital and career development tailored to Hispanic professionals.

Coming from Spanish heritage – my grandfather was from the Galicia region of Spain – and with 30 years of experience in the industry, I’ve seen this firsthand. Mi abuelo Manuel always had advice for me and I remember two phrases clearly: “Dress for the job you want, not the job you have,” and, “Always angle the knife away from you, whether you’re cutting, washing or drying it.”

I find that many Hispanic employees lack the support of sponsors advocating for their career advancement, a serious resource we must try and provide.

To truly advance Hispanic representation, the industry needs to invest in targeted mentorship and sponsorship programs, and focus on hiring and promoting Hispanic talent at every level. Leadership development programs must be both inclusive and accessible, while also encouraging open conversations about cultural diversity. By committing to these actions, the industry can break down barriers and open more pathways for Hispanic professionals to thrive and succeed in leadership roles.

Erika Wilson, Chief Marketing Officer, Sound Income Group

I’ve seen a lot of progress in the wealth management industry when it comes to advancing the Hispanic community, but there’s still room to grow.

On the bright side, more companies are starting to recognize the value of serving underrepresented groups, including the Hispanic community. It’s encouraging to see more focus on financial literacy, culturally relevant marketing, and hiring practices that reflect the diversity of the country. Given that the Hispanic population is one of the fastest growing in the U.S., it’s great to see firms beginning to tailor their services to meet the specific needs of this community.

That said, there are still some gaps.

One of the biggest challenges is representation – Hispanics are still underrepresented in leadership positions across the industry. Even as Hispanic wealth grows, there’s a shortage of Hispanics in senior roles, advisory positions and boardrooms. This lack of diversity at the top can limit the industry’s ability to truly understand and serve the Hispanic market. Additionally, many Hispanic families still face barriers when it comes to financial education and access to resources, which makes it harder for them to engage fully with wealth management services.

To move forward, we need to focus on increasing Hispanic representation in leadership roles and crafting marketing strategies that genuinely resonate with the community. Expanding access to financial education that speaks directly to the Hispanic communities would also go a long way in helping more people take control of their financial future.

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