Today, the fact is that most distributors have a predominantly male clientele. However, with more and more women joining the workforce, there is a new opportunity for them to expand their clientele. According to an independent study conducted in August 2013, 3 out of 10 information technology professionals were women and the number is growing. Also, the proportion of working women has been increasing across industry sectors and professions.
A DSP BlackRock and Nielsen study on women investors published in July 2013 suggests that only one out of four women takes her investment decision independently. Dependency of women on parents and spouse for their financial decisions, a common belief of women about their limited quant skills (ability of deal with numbers) are characteristics that set them apart from men. Thus, IFAs should help empower women so that they start taking investment decisions independently.
Cafemutual spoke to a few leading women advisers who have women clients to help you understand the goals and aspirations of women investors better.
Getting access
The first thing is to figure out how you would get access to them. Many women advisers believe that women are best prospected at social gatherings. “Reaching out to women through various associations like Mahila Samaj, Women Medical Practitioner Association, etc. makes advisors job a little easy,” says Jigisha Shah, Ahmedabad-based IFA.
A few advisors reach out to women prospects through house parties. If you are a male advisor, you can ask your spouse to attend such parties and connect with them. Tejal Gandhi of Money Matters believes that women advisers have an edge in targeting women investors as they can easily approach them through small groups of women like kitty party groups.
Once you know where to meet them, you need to prepare your script. Advisors say that you can organize financial awareness campaign especially dedicated to personal finance needs of women. Shifali Satsangee of Funds Vedaa says that organizing seminars in corporate houses (for women employees), universities (for women professors) has worked well for her. She says, “Such seminars not only spread financial awareness among women but also helps them become independent decision makers.”
Besides women employees, advisors can also reach out to women entrepreneurs. Vinita Bahri of Samarth Wealth Management Solution suggests approaching women entrepreneurs who run beauty parlors, coaching classes, tiffin service etc. According to her, such entrepreneurs have sufficient investible capital and more likely to engage the services of advisors.
Gaining confidence
The next step is to gain confidence of women clients. Advisors believe that the best way to gain their confidence is by showing them testimonials of existing women clients with similar profiles. Yogita Dand of ASKy Financial Services believes in sharing testimonials from existing clients with women prospects. She says, “Testimonials from existing clients helps advisers to better represent themselves before new clients. I believe that women clients look at the IFA’s track record before starting any business relationship.”
Sharing case studies and anecdotes from other clients has helped Nisreen Mamaji of Moneyworks Financial Advisers to grow her business. Mamaji says, “Such case studies help advisers to better represent themselves before women prospects.”
Advisors who don’t have women clients to showcase testimonials can prepare a presentation customized to the needs and aspirations of women. Making women oriented presentations has worked well for Tejal because women have different financial goals and priorities compared to their male counterparts. Tejal says “The presentation should be in audio visual format reflecting women’s lifestyles and challenges. Along with this, it should also represent significance of financial investment and what they gain out of it.”
Some advisers believe that the presentations should focus on day to day challenges a woman faces and how she can overcome these challenges. “These success stories inspire a woman prospect to make financial decisions independently,” says Gandhi.
The presentation should promote small savings habit of a woman. Shah believes in making presentations, which promote saving habits among women. She adds that advisers should explain the benefits of investing in SIPs. She says “Women are more into saving from their household budget; hence, diverting these savings of small amounts to financial investment through SIP may benefit them with optimal returns in the long term.”
Empowering them with financial knowledge is the key to gain their confidence. Mamaji advocates three steps - empower-educate-inform for gaining confidence of women clients. She says “Women clients are more or less dependent on their spouses and parents for financial decision as most women feel they have no financial understanding. As an adviser, I believe in empowering them through financial education and product information so that they can confidently make their own financial decisions.”
Developing skills to deal with women clients
Most women advisers believe that women are more concerned about their children’s future and long term goals like retirement savings rather than accumulating assets. Hence, advisers should focus on delivering goal oriented financial planning solutions while dealing with women clients.
Mumbai based IFA Jalpa Broker, whose clients are mostly women, believes in developing emotional bond with her clients. She says, “Advisers should try to find out family dynamics of women clients in the first meeting. I believe that women always like to carry financial relationship with a person who is concerned about the client’s family members. Just like a friend, an adviser should try to share happy moments and problems which are beyond business relationships.”
Besides engaging with women clients emotionally, IFAs should watch their body language. According to her, “Ensure that you are smiling and in a happy frame of mind since your listener will catch your frame of mind. The style of the conversation must be result oriented without being pushy.”
Key takeaways
- Reach out to women clients through women oriented institutions like Mahila Samaj, kitty and house parties and by organizing women specific investor awareness campaigns.
- Build trust among women clients by giving presentation which is customized for women, educating them on personal finance and showcasing testimonials of existing clients.
- Focus on goal oriented planning like child education to them.
