“Macho” Marketing Is a Huge Turnoff for Women in Financial Markets

<p>Despite
having above-average financial knowledge, most women believe they know too
little to engage in investments. Moreover, the fear of discrimination and the
dominance of advertisements targeted at men effectively deter them from
becoming more involved in financial markets.</p><p>Safety and Inclusion, Not
Social Status, Drives Women's Financial Preferences</p><p>A recent
study by Futura, Solaris's network for women in <a href="https://www.financemagnates.com/terms/f/fintech/">fintech</a>, has highlighted
security, openness, and inclusion as the top factors influencing women's
decisions when selecting financial products. The research surveyed 221 women
and revealed that a mere 8% are swayed by the prospect of increased social
status through financial services, pointing to a significant disconnect in the
industry's marketing strategies.</p><p>The report "<a href="https://www.solarisgroup.com/en/publications/futura-whitepaper/" target="_blank" rel="nofollow">Finance
for Everyone</a>" delves into the preferences and motivations of women in the
financial sector. The average participant, 33 years old and working within
fintech, preferred financial security and long-term growth over social status
elevation. Notably, 77% prioritized building financial security, and 68%
focused on retirement savings, while protecting against inflation and crises
was a concern for 47%.</p><p>"There
is at least $330 billion annual global revenue waiting to be unlocked by giving
women better access to finance," Alicia Close, the Senior Manager of Cards
Business at Solaris, said. "It's time to ask the question, 'Where are the
products that serve them?' This research reveals refreshingly simple yet
powerful solutions that providers can start turning to in order to remove the
barriers for women within current financial services products."</p><p><a href="https://www.financemagnates.com/binary-options/bloggers/are-women-better-investors/" target="_blank" rel="follow">Women are
generally better investors than men</a>, as many studies over the past few years
have shown. They are certainly less prone to making impulsive and excessively
risky decisions, and in the long term, their portfolios achieve higher rates of
return. Wanting to encourage them to invest more actively, <a href="https://www.financemagnates.com/trending/paypal-pledges-to-economically-empower-women/" target="_blank" rel="follow">PayPal recently pledged
$108 million to empower women economically</a>.</p><blockquote><p lang="en" dir="ltr">Did you know that statistically, women make better investors than men?<a href="https://twitter.com/hashtag/womenininvesting?src=hash&amp;ref_src=twsrc%5Etfw">#womenininvesting</a> <a href="https://t.co/1G5CkTGAgW">pic.twitter.com/1G5CkTGAgW</a></p>— MyWallSt (@MyWallStHQ) <a href="https://twitter.com/MyWallStHQ/status/1705593084782706748?ref_src=twsrc%5Etfw">September 23, 2023</a></blockquote><p>“Macho” Status-Linked
Financial Services Ads Put Women Off</p><p>The study
also identified simplicity (88%), accessibility (77%), flexibility (63%), and
security (58%) as the most appealing factors for women using financial
products. Conversely, 71% of women felt deterred because of a lack of knowledge, 55% the fear of making wrong decisions, and 40% excessive complexity.</p><p>Particularly
concerning is the impact of knowledge gaps and discrimination on the financial
well-being of trans women and non-binary individuals. A significant portion of
these groups reported not using basic financial services due to fear of
discrimination, highlighting a critical area for improvement in the sector's
inclusivity.</p><p>In
addition, the women mentioned being put off by “macho” status-linked financial
services ads. “If I walk down my street for just three minutes, I’ll see at
least five or six giant billboards advertising some kind of financial product.
One will be a luxury watch. The other will literally be a man and a bull,” one
of the respondents said.</p><p>Investments Are the Least
Popular Financial Services Products among Women
</p><p>Women make
up a very small fraction of the investing public. For instance, a survey
by the German Sparkasse in 2021 positioned the percentage of German women who owned equities,
equity funds, or equity-based ETFs at just 12%. Although
in some countries, <a href="https://www.financemagnates.com/forex/investment-trends-women-are-closing-investing-gap-in-australia/" target="_blank" rel="follow">for example, in Australia</a>, the investing gap is beginning to
close, in most places, investing is still an industry dominated by men.</p><p>The most
popular products among the surveyed women were online banking services, used by
96% of respondents. Investments proved to be the least popular; 60% of
respondents own ETFs, 45% stocks, and only 15% <a href="https://www.financemagnates.com/terms/c/cryptocurrencies/">cryptocurrencies</a>, with a mere 1%
hold NFTs.</p><p>“The issue
standing in the way of more women buying these products is one of empowerment.
Put simply, the way ETFs, stocks, and other investment products – especially
cryptocurrencies and NFTs – are designed, and other barriers to entry, often
put women off from buying them,” the report explained.</p><p>Respondents
who feel that gender stereotypes restrict their access to financial products
are not the majority, yet there is a prevalent sense of exclusion. 19%
specifically attribute this to a lack of representation and role models.
Furthermore, the gender pay gap and various structural inequalities frequently
pose challenges to accessing certain financial services.</p><p>However, a
separate study conducted by the French financial markets regulator <a href="https://www.financemagnates.com/forex/growing-number-of-french-women-wants-to-trade-amf-study-shows/" target="_blank" rel="follow">has shown </a>a
light at the end of the tunnel. Women are increasingly willing to engage in
various investment forms, at least in France.</p>

This article was written by Damian Chmiel at www.financemagnates.com.