Financial Services
Gender Investment
Recently there has been widespread
debate over the gender pay gap,
however, often overlooked is the
equally concerning gender investment
gap. With only 23% of female adults,
holding an investment product and
mainly very risk averse products,
compared to 35% of men, there is
clearly much more to do in order to
close this gap.
The underlying questions is, why do
women shy away from investment,
preferring the “safe” heaven of cash?
Recent research from Fidelity has
shown that the fundamental factor
behind this is confidence – women
don’t feel confident making those
financial decisions, mainly because
they don’t believe they have enough
understanding of financial products.
There is a financial literacy gap
between genders with women being
thrifty and smart with their money and
men concentrating on investing and
growing wealth.
The financial services sector needs to
change in order to facilitate female
investing. However, women can’t and
shouldn’t wait for these changes to
happen but should act now to drive
it themselves. There are a number of
different measures that should be put
in place to unlock their investment
power.
The creation of supportive networks:
Women should not pursue this change
alone but should network to create
supportive communities in which
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they feel free to share information,
experience and advice.
Education: As money management is
still not part of the national curriculum,
women should educate themselves
to understand the basics of financial
management.
Embrace the difference: A woman’s
more risk-averse nature should be
embraced. Female investment priorities
are different, not inferior. Investing
does not have to be full of risk to be
successful and if women understand that
their individuality is an asset, it will help
encourage them to invest.
Start small: You don’t need to be rick
to be an investor. Women can start
with the smallest amounts and build
up their confidence.
Celebrate success: It is important for
women to see and celebrate successful
women in finance. To do this it is
important to change the composition
of the financial services industry as
currently only 10% of wealth advisors
are women.