You may have noticed that there are growing numbers of women featured in the Times Rich List. Research shows that the global wealth of women will grow from $13tn to $18tn by 2021 (Williams 2017). In addition, the total number of assets under management held by female investors has grown worldwide by 8% over the past five years (Silverstein 2017). This goes to show that women are becoming increasingly wealthy and are therefore a fertile ground for potential business.
Have you ever stopped to wonder whether your approach as an independent financial adviser differs between your female and male clients? Or indeed, whether it should? This series of blogs looks at the changing market place and wealth management for women – does one size fit all in terms of financial advice? What are the advantages and disadvantages for using different approaches in advising women?
Addressing your Female Audience
If you’re looking to grow your female client base, it’s worth checking whether you could usefully refocus your perceptions. Perhaps there are adjustments you could make to ensure you have the best possible proposition, style of advice and supporting messages to help you create the most appropriate impression.
At Mischievous Marketing, we have carried out research with female business owners into the subtleties and psychologies of how wealth management is presented to them. The evidence offers a fresh perspective and some recommendations on your own approach to advising women.
Disadvantages for differentiating the finance model
Research shows that men and women don’t tend to differ in their perceptions towards wealth. In addition, both men and women are equally loyal to advisers.
Findings also identified the attributes that men and women look for in a financial adviser, and found trust being the key factor for both.
Advantages for differentiating the finance model
Sophia Grene claims that it’s crucial for the industry to recognise that women’s view of money and wealth as it is different from men’s (Financial Times 2017). Generally-speaking, women save more of their income and are interested in the impact of their investments. Furthermore, women do not seek to accumulate money but rather they use it to provide security and serve their goals and needs.
Men on the other hand experience greater confidence in dealing with wealth management and take a more strategic approach with their investments. Research also suggests that men may aim to acquire money as a status symbol.
Other differences between men and women are in relation to communication. Women cannot stand being patronised or ignored, and demand sufficient information in order to make informed decisions. It’s very important to understand that women dislike being ‘sold’ to. Rather, it’s a case of leading them to the point of appreciating their own requirements and presenting relevant options, enabling greater confidence in making important financial decisions.
Overall it seems that general perceptions towards wealth and the relationship with advisers are the same for men and women. However, it seems apparent that the ways in which men and women use their wealth and communicate can differ. Therefore, any differences between men and women could be considered when delivering financial advice although the differences may not to significant enough to change the finance model significantly.