Wealth managers are worried they’re failing to serve the world’s richest women, according to Orbium research
A huge majority of wealth management bosses believe that the needs of high-net-worth and billionaire women are not being met, according to new research.
The fast-growing number of women with wealth has caught firms on the hop, a study from wealth management technology firm Orbium showed after interviewing 50 chief executives of private banks and wealth managers presiding over more than $2.5 trillion (£1.8 trillion) of clients’ money.
Though most might assume that women’s investment needs are little different to men’s, Orbium found that 78 per cent of respondents said some of the world’s richest women were not having their financial considerations addressed.
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“Wealth managers were telling us that women have slightly different needs,” said Orbium’s Ian Woodhouse, a former PwC director. “They’re more likely to go for a goals-based approach when investing, looking at what are they are trying to achieve, whereas men will be more focused on investment performance.
“Women also tend to be more aware in terms of socially responsible investing. Wealth managers say around 80 per cent of women might go for sustainable investments, whereas for men it might be around 60 per cent.”
The types of asset which women are more keen to invest in may also be slightly different, Woodhouse added. Wealthy female investors are often particularly keen to plough money into real estate, partially because many of the businesses they head will have a real estate element.
As well as examining the extent of their expertise, wealth managers are also having to shine a brighter spotlight on the gender balance within their own firm, Orbium found. Many have recognised that female clients will want to see at least some women employed as advisers at the firm.
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This desire to effect change and attract more of the growing pool of wealthy women comes at a time when wealth managers are already feeling the pressure.
Orbium found firms were also worried about competition from robo-advisers and specialist social networking businesses, and many felt their own digitalisation was sadly lacking.
“Currently, only 17 per cent of participants offer their clients digital interaction with relationship managers. But by 2020, 76 per cent plan to offer this to meet the needs of next generation clients, who are used to the digital world and will expect it from their wealth managers,” said Woodhouse.
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