Financial Literacy Improves With Experience
The Financial Services Industry offers incredible opportunities for minorities. Financial Literacy help minorities compete for competitive financial services positions. We want to be sure that all multicultural Financial Services Professionals have successful entry into Financial Services.
Mainstream candidates for Financial Services jobs are more likely to understand the upfront reqirements and selection criteria than candidates from disadvantaged and underserved populations. All candidates are aware that companies perform screening, background checks and drug testing.
Mainstream candidates also realize that Behavioral Tests, Assessments, Role-play Interviews, Client Simulations including Phone interviews are a part of the pre-hire process. As a result…they are poised and somewhat prepared to confront and pass these pre-hire filters.
The following excerpt from Hispanic Business magazine might shed light:
Hispanic Business Magazine in an article titled "Lack of Diversity in the Financial Planning Industry" “In 2002, the Certified Financial Planner Board of Standards (CFP) collected demographic information from 21,911 CFP holders. As cited in the Journal of Financial Planning, about 5% of the respondents were nonwhite, with 0.94% identifying as African American, 2.42% as Asian American, 1.03% as Hispanic, 0.25% as Native American and 0.5% as other.
Jina Martingano, a CFP spokeswoman, could not confirm how the information was obtained, but notes it might have been gathered when CFP holders renewed their certification. While not all CFP holders are independent planners, independents interviewed by Financial Planning say the 5% figure roughly reflects their ranks today.
The white, non-Hispanic portion of the U.S. population is 67%, and that number is expected to decline over time. Planners of all races stress the need for an industry that better reflects the general population. Some efforts to encourage industry diversity, notably those at the university level, have proven successful. And the momentum seems to be building for new initiatives.
Mentoring May Be Key
Planners cite several reasons for the low minority involvement in the industry. Scarcity of mentors tops the list. "If you saw more people who looked like you, you'd be more interested in joining," says Jovita Honor, a planner of Mexican descent who practices in California. Others say minorities get less support at wirehouses than their white peers, so fewer succeed to move into the independent world. Barajas says young Hispanic planners often have fewer family members and friends who can invest money and help build their book of business. "The net they cast out when they're working is very small," he says.
Industry participants also cite a general lack of awareness of the profession among minorities. For example, Barajas says many Hispanic communities aren't exposed to financial services beyond mortgage brokers or bank tellers, so they don't realize the industry's scope.” Source: Lack of Diversity in the Financial Planning Industry. Submitted by rknight on January 19, 2007 - 09:36. Hispanic Business
Somewhat Of A Hurdle: Biodata Exams and Surveys
Candidates from underserved populations and minority communities may not perform well on “BioData” exams. Perhaps the most widely used biodata instrument is the Initial Career Profile (ICP) developed by LIMRA International in the insurance industry. The ICP is administered to approximately a quarter million candidates annually in the United States and Canada. This type of exam assumes that past behavior is the best predictor of future behavior. Biodata Exams could very well be an accurate predictor of future performance success in mainstream candidates.
A 2005 survey of independent advisory firms conducted by the Financial Planning Association revealed that a majority of investment firms are using assessment exams and surveys for hiring purposes. This includes large financial service companies.
Assessment Exams Used Includes:
DiSC
The DiSC measures what are called behavioral preferences by categorizing test-takers along the four dimensions its acronym represent: Dominance, Influence, Steadiness, and Conscientiousness. Source:
Profile XT
Job Match Testing - Profile XT Job Assessment Test: The Profile XT™ is a "Total person" assessment that has a myriad of uses. It measures the job-related qualities that make a person productive - Thinking and Reasoning Style, Behavioral Traits, and Occupational Interests The Predictive Index Process is a combination of assessment, education and consulting.
Develop Mentoring Programs That Utilize Existing Technology
A discriminate function analysis study revealed that mentoring may be the real key to our younglings’ early success in Financial Services.
Recruiters As Mentors
Auburn Mountain Financial Education Services will provide classroom and online environments for:
- Recruiters serving as mentors in all aspects of Financial Services
- Recruiter workshops that will explain testing and assessment requirement for the Recruiter’s companies or client companies.
Transition from College To Company - C2C
Drive career preparation and expectations at the undergrad college level by helping the College or University's Business, Insurance and Finance Department implement and execute the CFP program as a part of the curriculum.
Auburn Mountain Financial Education Services’ director Jim Robinson has co-pilot the prototype of this program at Howard University over several semesters for the last two years at Howard University. The following courses are taught:
- HS 300 Financial Planning: Process and Environment
- HS 311 Fundamentals of Insurance Planning
Auburn Mountain Financial Education Services’ directors and volunteers would facilitate the Transition from College To Company program. We work close with professors and identify students who are candidates for the program. They must be from disadvantaged and underserved populations. We will target the:
We would sponsor in part or whole the participation in 6 nine weeks sessions that leads to completion of CFP® Certification.
6 Nine Week Sessions that lead to CFP® Certification
CFP® Certification Curriculum - Six Required Courses
- HS 300 Financial Planning: Process and Environment
- HS 311 Fundamentals of Insurance Planning
- HS 321 Income Taxation
- HS 326 Planning for Retirement Needs
- HS 328 Investments
- HS 330 Fundamentals of Estate Planning
CFP® Board requirements include the completion of a Bachelor’s degree and ethics and experience requirements.
CFP® Certification Examination Review Programs
Once the candidate has met the educational requirement for CFP® Certification, We prepare them for the CFP® Certification Examination with CFP® Certification Examination Review Programs.
CFP® Certification Delivery System(s)
Although there are many service providers, we prefer to stay close to The College of Financial Planning program. To be sure we will provide alternatives if needed. The multicultural and minority Financial Services candidate will synergize the skills and expertise gain over the 6 nine week sessions in preparation for the the two day CFP® Certification Examination.
Financial Literacy
Financial education, just like reading and writing, affects the well-being of every individual. It also affects the economic and social well-being of every community and, ultimately, the overall strength of the nation’s economy.Source: National Conference of State Legislatures
Auburn Mountain Financial Education Services will improve Financial Literacy in communities with significant minority populations. We feel it is crtically important to empower the disadvantaged and underserved populations of the United States. We do this two ways. First we enable disadvantaged youth and adults to become Financial Services Professionals. Secondly, we help these Financial Services Professionals empower their clients to grow, manage and protect their wealth.
Financial Literacy in Communities of People Of Color Nationwide
In a prepared statement, Mr. H. Patrick Swygert President of Howard University addressed Chairman Paul S. Sarbanes (D-MD) and the Members of the Senate Banking Committee (10:00 a.m., Wednesday, February 6, 2002 - Dirksen 106). The topic was Financial Literacy and Education in America.
The President of Howard spoke on financial literacy and the critical problems plaguing the communities of people of color nationwide. Mr. Swygert conveyed to the Senate Banking Committee that educators have an inherent obligation to educate, nurture, train, and prepare our students for life’s many challenges, and to help mold them into tomorrow’s great leaders.
Auburn Mountain Financial Education Services feels that President Swygert statement still holds true today. This obligation holds true as we and prepare graduating students and recent graduates for careers and leadership roles as “Architects of Financial Planning Building” a.k.a. Financial Services Professionals.