A study conducted by Center of Talent Innovation shows that women are not just influencing wealth but determining how their assets are allocated. Interestingly, about 66% of Indian women take investment decisions independently.
The survey was carried in US, UK, India, China, Hong Kong and Singapore.
However, this large market is untapped by advisors. The survey shows that 53% (across six countries) women do not have a financial advisor. Nisreen Mamaji of Moneyworks Financial Advisors says “Women are not considered to be financially savvy and advisors think that most investment decisions are taken by male members of the family. This is why many women investors still do not have a financial advisor.”
Also, the study finds that 67% of women feel that their goals and aspirations are not properly understood by their financial advisors. “Of those women in our sample who do have advisors, 67% feel their advisor does not understand them or is not interested in them. This trend holds true across all sub segments of the female market, irrespective of age and asset levels,” shows the study.
Shifali Satsangee of Fundsvedaa says, “Advisors have to understand a women’s needs and priorities. Women differ from men in how they perceive wealth. They want an inclusive environment—one where they feel welcome to ask questions and feel assured they’re heard and understood.”
How to tap women investors
The study gives some insights on the behaviour of advisors which is likely to drive successful relationships with women investors:
- Advisors who are efficient and are sensitive to women’s time constraints and manage details (that women don’t have time to attend to) are 69% more likely to forge a satisfactory and enduring relationship.
- Advisors who take pains to understand their female clients are 42% more likely to earn her trust and loyalty.
- Those who educate a client by providing the information she needs to evaluate risk and those who help a client align her investment goals with her life goals are 41% more likely to earn her trust, loyalty and satisfaction.
To conclude, advisors who understand and honour a women’s financial, personal and social priorities are likely to win her trust, satisfaction and loyalty.