Report: what women want from financial services products so they engage more

Jana Hlistova

Nov 12, 2023

Welcome to our #212 weekly newsletter.

“For women taking control of their financial future”

-Jana Hlistova

From The Purse

In this week’s newsletter, we spotlight new research which outlines what women look for in financial services products. And therefore how they can feel more included by the financial services industry which typically targets the male customer.

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And you can review the news in brief so you stay on top of global financial, economic and investing trends.

I hope you enjoy this week’s newsletter.

Until next week,

Jana

Report: what women want from financial services products so they engage more

New research by Solaris highlights what needs to change in the financial services industry so women engage more with financial products.

A new report by Solaris, a card company, highlights women’s needs when it comes to using financial products and how to ensure women feel more included by the financial services industry.

Not surprisingly, women prioritise long term security over short term gains. As we know, women experience more career breaks or interruptions than men, on average are paid less and invest less (although this is changing now).

By implication, women have less wealth compared to men (on average).

When asked what women look for when obtaining financial services, they listed security, openness and inclusion as key.

What financial services products do women use most (and least)?

96% of our survey respondents said they use online banking services. Unsurprisingly, the most used financial services are everyday products including debit cards and mobile banking.

But retail investment continues to be low. In 2022, only around 18% of Germans aged 14 and over owned shares or equities, compared to 33% in the UK and over 50% in the US. The least popular financial services products for women are listed below:

Often the way ETFs, stocks, and other investment products — especially cryptocurrencies and NFTs — are designed, and other barriers to entry, often put women off from buying them.

The barriers holding women back in how they use financial products

According to Alicia Close, senior manager, cards business at Solaris:

There is at least $330billion annual global revenue waiting to be unlocked by giving women better access to finance..
…It’s time to ask the question, ‘Where are the products that serve them?’ This research reveals refreshingly simple yet powerful solutions that providers can start turning to in order to remove the barriers for women within current financial services products.”

So what are the barriers preventing women from using financial services?

So what do women want from their financial products?

Given the low uptake of ETFs, stocks, and other investment products, long-term financial health is our respondents’ single most important priority.

The low number of respondents who are marginally interested in increasing their social status is especially significant because this continues to be at odds with the marketing in the majority of financial services firms

Increasing financial literacy is key

85% of respondents believe there needs to be a bigger push towards educating women about money
80% believe that the earlier in women's lives this happens, the better.
And 68% of the respondents said that women should be more open about money. Normalising these kinds of conversations makes it easier to share knowledge and, in turn, for women to learn the best ways to manage their finances.

Looking ahead

Based on the report:

…personalisation is increasingly becoming a strategic imperative for businesses, including banks, fintechs, and other financial services providers. Unfortunately, the fintech workplace is still very much a man's world, and women's perspectives are all too often overlooked or, at best, dismissed as 'niche'.
But women are the opposite of a niche market.
They're an extremely diverse group of individuals making up over half of the world's population. And that means putting them at the heart of financial services product design isn't just the right thing to do.
It's smart business.

What next? (Re) listen to The Purse Podcast:

Financial news

China slid back into deflation in October, suggesting domestic demand remains sluggish even after recent stimulus efforts to shore up growth.
Year-end rally? What year-end rally? S&P 500 Equal Weight Index lost 1.8% this week, while S&P 500 showed a 1.3% gain. That boost was all thanks to Magnificent 7, surging 3.8%.
Friday, the FTSE 100 index was now down just over one hundred points, or 1.35%, at 7354, on track for its biggest one-day loss since August.
Moody's changes outlook on US rating to negative citing massive fiscal deficit & political polarisation which exacerbates fiscal risks. But affirms AAA rating.
US debt interest bill rockets past a cool $1tn a year. It is 4% of annual US GDP. It has doubled in 19 months. It is equivalent to 16.3% of the entire Federal budget for fiscal year 2022.
The UK economy flatlined between July and September, compared with the previous three months, as the impact of high interest rates and inflation weighed on consumers and businesses.
Warren Buffett’s Berkshire Hathaway continues to sell stocks. Conglomerate offloads more than $5bn worth of US & international shares.
Over the last 120 years 98% of all countries where sovereign debt/GDP hit 130% ended up defaulting.

Crypto: bitcoin, ethereum, DeFi & NFTs

Bitcoin rallies past Terra crash level. Rises to highest level in 18 months, before Terra collapse. Bloomberg analysis sees the chance for a Spot Bitcoin ETF at 90% by January 10. But Bitcoin is only halfway to reclaiming the heights of 2021 crypto mania when it peaked at $69,000. Over the past seven days, BTC is up nearly 8% and trading hands for $37,369, according to CoinGecko.
Ethereum crossed the $2,000 mark for the first time since July; it is currently up over 14% over the week.
Solana (SOL) has soared above $50 per coin, and priced at $54.54—a more than 38% weekly rise.
Chainlink (LINK) has experienced a 33% seven-day rise—making it the next best gainer after SOL out of the top 20 coins and tokens. It is currently trading for $15.10 per token.
CoinShares Head of Research James Butterfill has said that investors have poured over $1.07 billion into digital asset investment products so far this year.
JPMorgan says 'crypto rally looks overdone'. They are “cautious on crypto markets going forward.”