LOOKS LIKE THE MEN ARE STILL IN CHARGE?

There was a consumer survey of 12,000 women conducted by BCG (Boston Consulting Group) across 21 nations. 71% of them were not happy with the products they were offered and 73% also noted that they were not happy with the kind of service they received from financial providers. Most of these surveyed women have the notion that their gender was the main reason why they were treated negatively. Their citations were basically on experiences they had such as having been treated with impolite attitudes, disdain and offering them generic solutions, among other concerns. Hence, what truly is the measure of the present level of satisfaction among women when they deal with their local financial providers? What research has revealed is that women are in constant doubt of their capacity to deal with their banks or financial advice-givers on even terms. To test their ability on making investment choices and good savings they are asked to rate themselves.

On a scale of one to ten, 33% of them rated their financial confidence below 5 out of ten as compared to men that were just 26%. This is drawn from the Old Mutual Saving and Investment Monitor research. The financial services market has the essential tools to support women, but the manner in which offering needs are approached needs to be reviewed. This is simply because it goes beyond just making an introduction of products and services that are only for women. When you see the amount of comments women made in the BCG research conducted in 2009, they were in particular voicing out the attitude of financial providers towards women. They voiced their concerns on the level of disrespect shown and on a generic approach without any attention to their specific needs.

The financial needs of women are not that different from that of men.

Women want a reasonable set of products with the expected executions that come along with it. A lot of financial services company across the world offer world-class financial products that are in line with comprehensive financial and investment desires of several clients.  Notwithstanding, the products offered are numerous and to select a suitable one can be stressful particularly for those that don’t have the financial confidence. Just looking at collective investments, you will see that it has gone up when you compare the previous year to the present year. Giving that the level of confidence among women is quite low, making funds specifically for women is not likely to make them achieve more financial success. This is quite a deep issue and what financial service providers need to do to find a solution is to appoint additional women in management so that confidence can be inspired. There is also the need for the unnecessary use of jargons to be stopped, particularly when dealing with clients.

Differences in Management

This is basically about diverse management that pulls a wide range of different minds, beliefs, and understandings to relate to various audiences and push innovation.  Regrettably, women are still underweighted unlike the men in the financial services sector.  Oliver Wyman in a 2016 research by a global management and consulting company found that there are improvements, though slow, in female representation in financial services.

At a local level executive committee, the rate of female members in the financial services is about 27 percent. What this means is that out of every four persons that hold a senior management position only one is a female. An EY study of about 22,000 firms in 2016 revealed that those that had a leadership contingent of minimum 30 percent women, made an average extra profit of 15 percent. There is the need to have more female leaders and have the general working environment contain more women.

It should be ensured that more women take up managerial position.

The financial services sector should play its part by training more women to become financial advisers given that presently men make up 70 percent of financial planners. It is about time these differences are recognized, seized and celebrated. The situations where people engage with only those that they have a similar worldview and end up muffling the perspective of others should be put to an end.

Companies should begin to create a more diverse team.

When there is more diversity in relating financial solutions to women, the rate of success will increase, compared to just introducing a new generic fund for women.

Clear Communication
In the financial services sector, another troubling issue that is found is financial education and the use of jargon.  Focus Group Consulting had stated that financial advising firms fail to advocate for a better understanding of the necessary financial principles.

They make use of a huge amount of jargon that turns out to be confusing, which has normally been referred to as the ‘curse of knowledge.’ It is important for the financial services industry to become more responsible for how they communicate to women so that greater success can be achieved.

There are a number ways to fix the problem in this sector:

Communication to clients should be plain and easy

The innumerable financial solutions out there should be simplified

Women should be treated fairly with dignity and respect

Women should be assisted when dealing with the financial services industry to help increase their confidence level. The level of interaction with people, in general, should be improved. Developing a range of female financial solutions only adds to the complexity.