Wealth managers struggle to serve women of substance

Private banks are increasingly highlighting importance of building trust and confidence to address the gender wealth advice gap.

The financial priorities and succession planning approaches of men and women reveal significant differences. Research from Charles Stanley shows nearly half — 45 per cent — of high net worth women prioritise their children when considering wealth transfer, compared to just one-third (33 per cent) of men.

In contrast, 37 per cent of men would first consider their spouse in matters of wealth succession, a figure that drops sharply to 17 per cent for women. These disparities highlight the contrasting ways in which men and women approach the preservation and distribution of wealth.

Many wealth firms and private banks are failing to address these basic needs, say industry voices. “Women generally haven’t been part of the financial conversations in families. At UBS, we are very focused on building financial confidence,” says Emma Wheeler, head of women’s wealth at UBS Global Wealth Management. She believes financial confidence is key.

It’s not about “fixing” women; it’s about fixing the industry, she says. Wealth managers need to change the conversations to be more “relational than transactional”, to ensure women feel comfortable and confident when investing.

The Swiss bank’s Women’s Wealth 2030 initiative focuses on advancing gender equality and female financial empowerment. It includes events, discussions and reports on rising trends that will drive transformation in the coming decade.

“The message to the industry is clear: learn the differences between men’s and women’s financial priorities, and change the conversation to be more relational,” says Ms Wheeler adding that “trusted advice” creates loyal clients who are likely to refer others.

Distinct needs

Traditional wealth management models have long been designed with a male-centric framework, often overlooking the distinct financial needs of women.

While financial services have evolved to reflect broader societal changes, they still largely adhere to patterns more attuned to men’s financial behaviours, leaving women underserved. But these patterns are often much more nuanced and less stereotyped than many banks realise.

“I think it’s a bit too simplistic to say women’s journey with wealth is completely different to men’s,” says Sarah Courtney-Dockett, head of women in wealth for the Emea region at Citi Private Bank. Cultural experiences shape their financial habits, she believes.

“My relationship with money really became shaped by the fact that my father passed away when I was 14. My mum had no money and I remember thinking I never want to be in that situation,” she recalls. “Having my own money and not relying on anyone else, and always planning for the worst, is ingrained in me.”

Citi’s Women in Wealth initiative has forged a global network to connect individuals of all genders, fostering exchange of ideas, education, and experiences from a female perspective. The bank claims this underscores its commitment to addressing “the unique needs of women in wealth management”. Last year, Citi Private Bank was recognised as the best private bank for wealthy women at Professional Wealth Management’s Global Private Banking Awards, cementing its leadership in this increasingly important sector.

Women “value” community and network, believes Ms Courtney-Dockett, who aims to “create spaces’ where women can “share powerful stories and educate each other”.

“It’s about creating a safe, inclusive space to talk about what really matters,” she says.  “Women, when it comes to financial planning, think about the next generation, but also think about their own future and life, not just passing wealth down to their children.”

Financial literacy

Financial literacy and education are fundamental to understanding and prioritising wealth management, she says. According to the 2024 TIAA Institute-GFLEC Personal Finance Index, US women, on average, answered only 43 per cent of financial literacy questions correctly. This gap is even more pronounced among minority groups, including African-American and Hispanic women, who scored lower still. In contrast, men correctly answered an average of 53 per cent of the questions, highlighting a significant disparity in financial knowledge between the genders.

“If you are a professional and in the workforce, you need to think about financial literacy now,” Ms Courtney-Dockett urges. “Women want to make sure they know 100 per cent of the answer, so they’re slightly more rested, but once they have the confidence, they will read every document before they sign it.”

This misalignment is especially evident when considering women’s unique financial journeys, shaped by factors such as longer life expectancies, wage disparities, and career interruptions. “Financial institutions can no longer afford a one-size-fits-all approach,” says Steph Wagner, national director of women and wealth at US firm Northern Trust. “To truly serve women’s needs, the wealth management industry must acknowledge these differences and adapt.”

Given these differences, financial institutions must evolve and offer more guidance tailored to women’s realities, says Ms Wagner, empowering them with financial education, prioritising long-term security and factoring in their caregiving roles and longer lifespans.

Northern Trust has launched a Women Elevating Advice initiative, centred on empowering female clients through tailored guidance and support. In the coming decades, women will inherit and control a significant portion of global wealth, whether through earnings, inheritance, or divorce. Yet the wealth management industry has been slow to catch up, believes Ms Wagner.

“The future of wealth management isn’t just about shifting assets, it’s about shifting mindsets,” she suggests.