Finance companies could be missing out on £130 billion by not appealing to women, according to new research.
The study, conducted by Kantar, found that financial institutions are failing to connect with women at every stage of the buying journey – from advertising to offerings.
According to Kantar, advertising fails to communicate with core tenets of ‘trustworthiness’, ‘understanding’, ‘dependability’ and ‘accessibility’ to women.
The report found that women viewed financial advisers as arrogant, self-interest and untrustworthy, and that they feel “diminished” when they talk to one.
It also suggested that women are less confident when it comes to finances. Of female customers, 65 per cent had low financial confidence compared to 55 per cent of male customers.
Despite this, the report suggests that investing in women makes good financial sense. Women are more likely to recommend their bank based on recent transaction. Typically, women also have more savings, mortgage and general insurance products.
Women are more responsible borrowers than men, and look more closely into deposit requirements, monthly affordability and extra costs. The study found that men are four times more likely to borrow money from friends, and are more likely to underestimate the cost of buying a home.
Speaking about the results of the report, Amy Cashman, UK managing director of financial services and technology at Kantar TNS and the study’s lead author, said, “Women care about context, they care more about other people and less about themselves.”
“We found that men focus on their own things, and concerns around financial security and so on.”
“Women, however, are more concerned about families and everyday banking products when speaking about finance.”
Bart Michels, UK country leader for Kantar said, “In failing to develop client experiences rooted in me and women’s fundamentally different perspectives on finance, financial services institutions are missing a very significant business opportunity.”
“Financial institutions are focusing their efforts on the confident, rather than the competent.”