The Strategist

Affluent women changing wealth management industry

03/14/2017 - 14:11

Swiss bank UBS calculated that aggregate global wealth of women will grow from $ 13 trillion to $ 18 trillion by 2021. The figure will be increasing 1.6% faster year-on-year than men's total wealth, the Financial Times writes.

After two years of research, UBS Wealth Management concluded that female and male clients should be approached differently, so UBS Wealth Management decided to reorient its advisory service to better meet needs of women, reports the Financial Times. Now attracting more female clients is a priority for the bank. In particular, the institution will organize a council of nine people who do not work in UBS to assess effectiveness of the bank's efforts to attract new customers.

Now, women own about 30% of assets managed by UBS Wealth Management. However, the bank hopes to "significantly increase" this share over the next five years.

In dealing with women, the emphasis should be shifted towards their goals and expectations, rather than the net results of investment. "Family" and "heritage" should become the most important categories in such a dialogue. Women are very busy: they build a career, take care of their families and children, so an asset manager should not forget that they don’t have much time, says UBS managing director Olga Miller.

UBS is not the first asset manager to target the female audience. Killik & Co company, located in the fashionable London area of Mayfair, is holding regular seminars for women who find themselves in "difficult circumstances." This is a divorce, parting with a partner, his illness or death, that is, a situation where a woman has to take complete control over her finances. Killik & Co launched this project by request of their clients. The goal of the monthly seminars is to teach women to better control their funds, savings and investments in securities, and to optimize taxation.

The wealth management industry is still represented mainly by men, who, in turn, have a longstanding experience of working exclusively with men. "But, according to Boston Consulting Group, most women are dissatisfied with their managers and believe that they are not adequately relevant to their expectations and needs. According to American statistics, 70% of widows who inherited capital fired male financial consultants, with 90% of them subsequently hiring women", says a representative of UFG.

Despite the fact that wealth of women is growing, The Sunday Times’ ranking of the 1000 richest people in the UK includes just 125 women. Moreover, the study’s authors say that almost all of them either have a share in a joint business with their husband or other family members, or inherited their fortune. It was also noted that women are much less likely than men to invest their own money earned on their own. But at the same time, a woman initiates an appeal to a financial adviser, very often it happens in well-off families. 

FT Money asked BritainThinks to interview more than 2000 men and women. Here’s what they found out:

•    40% of women and 30% of men consider themselves less knowledgeable about investing than others.

•    Men more often took responsibility for search for investment ideas (51% versus 40% among women).

•    Men twice as often as women agreed that "risk of investing is important for obtaining good results."

•    More than 40% of respondents of both sexes complained that the financial industry "does not develop products that meet internal needs of people like me." 


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