Women were shown to have less time to plan for the future
(
AFP/Getty
)
Banks are failing to connect with women who view financial advisers as arrogant, self-interested and untrustworthy, according to new research.
The report from insight and consultancy business Kantar, showed that financial institutions are losing out on a £130bn business opportunity by not appealing to women.
“In failing to develop client experiences rooted in men and women’s fundamentally different perspectives on finance, financial services institutions are missing a very significant business opportunity,” said Bart Michels, UK country leader for Kantar.
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“Financial institutions are focusing their efforts on the confident, rather than the competent.”
The research, based on interviews, social media analysis and data from target group index (TGI), which is part of Kantar Media, showed that banks’ advertising fails to consistently communicate qualities including ‘trustworthiness’, ‘understanding’, ‘dependability’ and ‘accessibility’ to women when tested using facial recognition technology.
According to the report, women tend to focus more on relationships and family life when dealing with finances than men, who are interested in products and price. Women also have less time than men to plan for their future.
But women are an attractive prospect for banks. By 2020, they will hold over half of investable assets.
The report shows that satisfied female clients are twice as likely to recommend their bank, they typically hold more savings, mortgage and general insurance products than men and are more loyal.
Women were also shown to be more responsible borrowers with a more conservative approach to the financial barriers to homeownership - two thirds of men under-estimated the cost of buying their home compared to half of women.
However, Kantar’s research shows that women are less financially confident. Among female customers, 65 per cent were found to have low financial confidence compared to 55 per cent of men.
Amy Cashman, UK managing director of financial services and technology at Kantar TNS and the study’s lead author, said: “Women’s lower engagement is also a major factor behind their concerns and shortfalls in retirement income.”
Men’s average retirement savings of £73,600 were three times more than women’s at £24,900, she said.
Business news: In pictures
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1/11 Corbyn wishes Amazon a happy birthday
In a card sent to Amazon CEO Jeff Bezos on the company's 25th birthday, Labour leader Jeremy Corbyn writes: "You owe the British people millions in taxes that pay for the public services that we all rely on. Please pay your fair share"
2/11 No deal, no tariffs
The government has announced that it would slash almost all tariffs in the event of a no-deal Brexit. Notable exceptions include cars and meat, which will see tariffs in place to protect British farmers
Getty
3/11 Fingerprint payment
NatWest is trialling a new bank card that will allow people to touch their hand to the card when paying rather than typing in a PIN number. The card will work by recognising the user's fingerprint
NatWest/PA Wire
4/11 Mahabis bust
High-end slipper retailer Mahabis has gone into administration. 2 Jan 2019
Mahabis
5/11 Costa Cola
Coca-Cola has paid £3.9bn for Costa Coffee. A cafe chain is a new venture for the global soft drinks giant
PA
6/11 RIP Payday Loans
A funeral procession for payday loans was held in London on September 2. The future of pay day lenders is in doubt after Wonga, Britain's biggest, went into administration on August 30
PA
7/11 Musk irks investors and directors
Elon Musk has concluded that Tesla will remain public. Investors and company directors were angry at Musk for tweeting unexpectedly that he was considering taking Tesla private and share prices had taken a tumble in the following weeks
Getty
8/11 Jaguar warning
Iconic British car maker Jaguar Land Rover warned on July 5, 2018 that a "bad" Brexit deal could jeopardise planned investment of more than $100 billion, upping corporate pressure as the government heads into crucial talks
AFP/Getty
9/11 Spotif-IPO
Spotify traded publically for the first time on the New York Stock Exchange on Tuesday. However, the company isn't issuing shares, but rather, shares held by Spotify's private investors will be sold
AFP/Getty
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The British firm said Gemalto was chosen only because it undercut the competition, but the UK company also admitted that it was not the cheapest choice in the tendering process.
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The Beast from the East wiped £4m off of Flybe’s revenues due to flight cancellations, airport closures and delays, according to the budget airline’s estimates. Flybe said it cancelled 994 flights in the three months to 31 March, compared to 372 in the same period last year.
“This makes improved engagement of women in the financial sector a social imperative as well as commercial opportunity.”
To find out the differences between men’s and women’s relationship to finance, the report’s authors interviewed over 2,000 men and women, analysed over 1.5 million social media posts, used facial recognition technology to analyse reactions to adverts and analysed TGI data, which offers a complete view of consumer behaviour and motivations.
Most research was conducted between May and September 2017 while the social media data was gathered over the past year.
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