Research: for women to invest more, wealth management firms need to learn how to engage the female client
Welcome to the bi-weekly update (#190) where we dive deeper into key topics, themes or issues specific to women and their lived experience.
A new report published by UK research company Forrester reveals no surprises: fewer women than men invest even though this is the route to wealth accumulation, as reported by the Wealth Briefing.
The report comes at a time when wealth management firms are trying to become more diverse and inclusive (and therefore more welcoming of women as clients).
Forrester’s research confirms what is widely known: that wealth management firms are: ‘..almost exclusively thinking about men in their product, service design, and marketing communications, neglecting the potential of the female market.’
Based on Forrester’s data in 2022:
only 35% of women with internet access are investors
compared to 48% of men with internet access.
However women are a large and growing customer base. In the UK, women will own 60% of the private wealth by 2025.
According to Forrester, wealth management firms need to adjust their marketing approaches and offerings accordingly.
For example, women tend to have a lower willingness to own riskier investments such as individual stocks, cryptocurrencies, and commodities. And this may have more to do with how these investments are marketed to women or how they are ‘packaged up’.
Moreover only 31% of women believe they are receiving good financial advice. And women tend to rely on their own research and validation from trusted sources, such as friends, family, and professional review websites, when choosing investment firms.
According to Forrester, building trust through online platforms and providing transparent information can significantly impact women's investment decisions.
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