For many wealth managements firms, attracting both male and female customers is imperative for growth.
This is even more so in the modern age, as more and more women are becoming the financial decision makers within the household.
On average, women are more likely to be beneficiaries of inheritance or gift transfers, and are generally more interested in investing in the future.
But the financial needs of women are still not being met.
According to research by Capco, women are regarded as a specific client niche within wealth management, and in order for firms to succeed, we need to develop a deeper understanding of women’s needs, behaviours and preferences when it comes to managing their money.
Wealth management has been a predominately male-facing industry for decades, and as data from the Personal Finance Society suggests, out of 7,578 chartered financial planners, 1,638 were women.
But as women continue to break out of societal boundaries, we have seen a rise in female-facing endeavours in the financial industry.
Research by McKinsey & Company suggests that over the past five years, there has been a 30% increase in married women making the financial decisions for a household.
In the modern day, women are in charge of roughly a third of household financial assets in the US, which is more than $10 trillion. And in the UK, 85% of women were in control of their family’s finances in 2019.
Worldwide, women control over 30% of the world’s wealth.
This is expected to increase over the next decade, as an average of 70% of household assets are controlled by baby boomers (a person born between 1946 and 1964). Currently, two thirds of these assets are held by joint households, so as one adult inevitably passes, another $11 trillion will be put into play.
On average, women in the United States have a life expectancy of five years more than men, and many heterosexual women tend to marry partners two years older.
This suggests that there will be a time in which the men will pass, leaving control of their joint household assets to their female spouses.
By 2025, more than 60% of the UK’s assets are predicted to be in the hands of women, according to Charles Stanley.
Within one year of their partner dying, roughly 70% of women change their financial advisor.
Retaining baby boomer women could help wealth management firms see one-third higher revenue potential.
In doing this, wealth management firms can also win the trust of the next generation – millennials.
Still struggling to step foot on the housing ladder, gaining a better understanding of the more self-directed and tech-savvy millennials will give wealth management firms a head-start for the future of female wealth.
By taking on board the Millennials’ assertive approach to the marketplace and valuing the likes of climate health, minority rights and veganism, wealth management firms can build new relationships using the latest technology, whilst also focusing on the financial goals of women.
After centuries of being forced to take a backseat, women are set to take centre stage in the world of wealth management.
With this in mind, let’s take a look at what wealth managers can do to get a head-start and target this growing group of women in wealth.
Firstly, you can tailor your services to meet women’s preferences and aims, as well as focus on advising on long-term financial goals, as these tend to be a priority for women.
You should also outline the aim of an investment plan to cater to a mission-driven view.
The recent Coronavirus pandemic has caused a shift in the financial industry, and due to this, wealth management firms will likely benefit by considering their services and offerings for an ever-evolving demographic of perspective clients.
Wealth management firms have already started hiring more female advisors and producing marketing campaigns which show women setting up retirement plans, purchasing insurance and buying houses in an attempt to cater their services to this prospective growth customer.
An example of this is international bank BNP Paribas Wealth Management, who reach out to a variety of customers, including women, in their marketing campaigns and videos.
And Clarion Neon, who created an advert showing an image of a woman with two children and the words ‘Invest in futures’ to appeal to women’s main financial goals.
Companies like Lisney are targeting women looking to invest in property, by showing single women in their ad campaigns for free sales valuation, rather than the men or married couples we have become accustomed to seeing.
The automobile industry is also looking at women as more long-term investors, with companies such as Carwow creating female-led adverts, proving that buying and selling cars is done by women, not just men, as women are more likely to invest in the future of their household.
What’s more, Receptional’s paid social team found that for one wealth management client, the female audience is 18% more likely to click on their ads than a male audience, on Facebook and Instagram.
Despite these ads not being female-fronted, it proves yet again that women are the future of the world’s wealth.
Targeting women in wealth management is crucial to the growth of many firms, but in order to successfully engage women through smart financial services marketing, you’ll need to understand how women manage their money differently than men.
Female financial decision-makers are more likely to seek financial advice and are generally more willing to pay a premium to see an advisor face-to-face.
In addition to this, due to socially ingrained standards, gender roles and many other factors, many women have reported lower confidence in their investment and savings-related decisions.
This leaves room for financial advisors and wealth management firms to prioritise helping women build confidence and meet their financial goals.
Women are more likely to protect their money and investments through passive investment strategies, whereas men tend to opt for more active strategies.
For example, women might favour lower-cost exchange-traded funds, rather than mutual funds, proving they are less likely to take big risks.
This also shows women’s goals generally favour future planning, ensuring assets and investments are protected for the future for themselves, as well as their household.
A priority for most female financial decision-makers is retirement. With health at the forefront, women tend to worry more about whether they are going to be able to afford healthcare later in life, or if they will become a burden to others.
At Receptional, we create content for a variety of clients, including those who offer financial services.
One of the most important aspects of creating content is knowing your target audience, and with this ever-shifting demographic influencing the wealth management industry, we know how to increase traffic to our clients’ sites, creating content which is informative and considerate of the financial needs of all.
Bearing in mind women may be our main target audience, we can make our content more accessible by answering the questions which women need answering, putting their needs front and centre.
Through on-page optimisation, content strategies and link building, we can use SEO efficiently to target and improve rankings for keywords that women in wealth are likely to be searching for. By analysing the user intent of relevant keywords, we can aim to direct prospects at the right time in the marketing funnel, to the right site or page that meets their financial needs.
We can look to the future and encourage each client to become more female-facing through their ads and services, and we can help firms to rethink how they create value for women, while simultaneously extending into new business spaces.
This can be done through digital and social media platforms, where ads and keywords can be set to target certain audiences based on preferences, location and demographics. This can then ensure that relevant content is provided to boost confidence and make financial services more accessible for women, for generations to come.
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