Wealth Managers Adapt as Women Gain Economic Power
Wealth managers are adapting their services as women increasingly control a larger share of the world’s wealth, despite not investing at the same rate as men.
Research from the Boston Consulting Group indicates that women now hold about one-third of the world's private wealth. Furthermore, projections from the Centre of Economic and Business Research suggest that by 2025, women in the UK will own 60 percent of the country's wealth.
The global percentage of ultra-wealthy women has risen to 10.9 percent in 2022 from 6.5 percent in 2016, according to Statista. Victoria Ross, a chartered financial planner at Progeny, sees this demographic shift as a significant growth opportunity for wealth managers. She notes that the financial industry, traditionally dominated by men, has not fully met the needs of women, who often face barriers like gender-coded language and lack of representation in financial discussions, according to an article by the Financial Times.
The industry is urged to better understand the financial behaviors and drivers for women to effectively communicate and provide services that resonate with them. This includes recognizing the unique goals of women, such as caregiving responsibilities and long-term financial planning. Ross points out that financial firms need to avoid gender biases in communication and make a concerted effort to promote inclusivity.
Bhavi Alagaratnam of Fidelity International emphasizes the importance of engaging with women earlier in life through financial education at various life stages, from school to major life milestones like marriage, childbirth, and retirement. By doing so, wealth managers can help women achieve greater financial independence and address the financial disparities between men and women.
Wealth managers are now focusing on offering more personalized planning and education on investing to cater to the specific needs of female clients. This includes involving them actively in financial discussions and providing resources tailored to their financial education.
In summary, as women's economic influence grows, wealth managers are recognizing the need to adjust their strategies to better serve female clients, fostering a relationship that benefits both parties.
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