According to a survey of more than 12,000 women from 21 countries, females are more dissatisfied with financial services than they are with any other industry.
It’s a reflection of the fact women have unique and separate financial needs and therefore a specialist approach is necessary to meet their requirements.
The survey, Women want More (in financial services) published by the Boston Consulting Group, argues that a different approach is required when it comes to women and banking and there’s an opportunity for financial institutions to rethink their offering for women.
According to the research:
- 73 per cent of women who have bought investment products were unhappy with the service they received and 71 per cent were dissatisfied with the product offering.
- 75 per cent of women who have bought insurance were unhappy with the service they received and 74 per cent were unhappy with the service offering.
- 64 per cent of women who bought credit cards were unhappy with the service they received and 62 per cent were unhappy with the product offering.
As a result, they would be willing to switch to providers who better understand their needs.
Another report, Giving credit where it is due: How closing the credit gap for women-owned SMEs can drive global growth,
published by investment house Goldman Sachs showed that closing the credit gap for women-owned SMEs in developing countries alone over the next few years could “boost real income per capita growth rates in those countries by around 85 basis points on average.”
It noted that if the credit gap is closed by 2020, incomes per capita could be on average around 12 per cent higher by 2030 across developing nations, relative to its baseline scenario.
According to the research, “closing the credit gap for women-owned SMEs across the developing world as a whole could boost income per capita growth rates by over 110 basis points, on average. While eliminating the whole gap is a tall order, the impact on growth could be dramatic.”
It suggested financial institutions focus on four areas to better engage women:
- Household admin: providing budgeting tools and resources to help automate calculations and payments.
- Financial education: providing opportunities to learn about budgeting and saving.
- Financial advice: educating planners that women have different financial needs to men.
- Children’s solutions: education and access to funds in emergencies.
There are many steps all financial institutions can take to improve the way they engage with women. Now’s an opportune time for every bank to make this a priority.
This article represents the views and opinions of the author and do not necessarily reflect the opinions of BPAY.
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