A missed opportunity? Why the financial industry must not underestimate women.
A new era of female wealth is dawning. By 2045, an unimaginable $84 trillion will be inherited. While a large portion of this will initially go to the wives of Baby Boomers, later on, Millennials, especially women, will benefit from this enormous wealth transfer. Half of them are women, including many singles.
So, wealth will soon be in the hands of women in an unprecedented way. These women are expected to play an important role as a new financial power in the future and fundamentally change the financial world.
However, the wealth management industry is lagging behind in adapting to their specific expectations. Especially young women, who have grown up with digital technologies, expect financial services to be intuitive, transparent, and personalized. They often have different investment goals and horizons than their male peers. Those who do not recognize these developments and respond to them risk losing touch with a new generation of female investors.
The other half: Women and their money
Only half of women have a clear idea of how they could increase their money. In contrast, almost three-quarters of men know exactly how to make a financial profit. It should not be forgotten that married women in Switzerland were only able to open their own bank account without their husband’s signature since 1988. This lack of experience often leads women to leave their money in a safe but less profitable savings account instead of investing it profitably.
To take control of their finances, they need the right support. They are looking for financial advisors who can help them achieve their financial goals – with less jargon, less risk tolerance, and a stronger focus on financial planning. Additionally, they place more value on transparency, sustainability, and social responsibility in their investments.
Wealth management is at a turning point. Those who want to take advantage of the growing female financial power must fundamentally rethink their offerings and advisory approaches. Because women who do not feel taken seriously will seek out other financial service providers.
Personalized advice: The key to trust
Trust is the currency in financial advice. Women desire a personal relationship with an advisor who understands their goals and values. By addressing the specific requirements of women, financial service providers can build long-term customer relationships. Modern technologies such as enablement platforms can help make advice more individualized.
These tools allow for automated and personalized communication, ensuring consistent and compliant processes. This way, clients can be sure that their financial affairs are being reliably and professionally managed.
Artificial intelligence (AI) and machine learning assist financial advisors in creating personalized recommendations. These technologies analyze large amounts of data and identify relevant content for clients in real-time. This enables strategies to be tailored to the interests of clients and provide targeted support without neglecting data protection and security standards.
At the same time, automation technologies take care of tasks such as pre- and post-meeting preparations or the translation of important information. This saves valuable time that can be used for the essentials: personal advice. This creates a consulting service that is tailored to customer needs.
Financial tips to share: Why banks should not neglect social media
More and more women are using social media to educate themselves on financial topics. Platforms like Instagram, Facebook, and LinkedIn provide an easy way to acquire knowledge and exchange ideas with others. Therefore, social media offers banks an ideal platform to share expertise and explain complex financial topics in an understandable way.
Banks that build an active presence on these channels can help women make informed financial decisions and establish themselves as trusted partners.
Conclusion: Women and finance – an opportunity for financial service providers
The “Great Wealth Transfer” marks a turning point in the financial sector. Women are becoming an increasingly important force in the financial world. To successfully address this development, financial service providers must rethink their traditional approaches. Personalized advice that caters to the specific desires and expectations of women is the key to success.
With the help of digital technologies, financial advisors can offer a new quality of advice and gain the trust of their clients. The future of the financial sector lies in individualization and recognition of the specific demands of female investors.
