"When women don't feel empowered to take control of their finances, they may miss out on crucial opportunities for savings, investment, and retirement planning."
Hold onto your hats, because we're about to dive into a financial crisis that's been hiding in plain sight: the women's financial confidence gap – a gap so wide it's leaving women feeling powerless when it comes to their money.
While some companies in the sector, like HSBC with their 'Cutting the Strings of Financial Control' campaign, have attempted to tackle this issue, it's clear that we need to do more. We're not just talking about raising awareness of financial abuse here, we're talking about empowering women to take control of their own financial futures.
It's time to break down the barriers that have been holding women back and give them the tools they need to succeed. Especially when it comes to pensions, savings and investments, the industry needs to step up and give women the positive messaging and support they deserve. It’s time to stop making this topic a footnote in a white paper about the cost of living crisis and start taking action to close the women's financial confidence gap once and for all.
As a strategist, this topic is close to my heart: marketing to address the women's financial confidence gap. We've identified five key shifts that financial brands and institutions can make to not only start tackling this issue head on, but also tap into a huge market of opportunity.
So why should brands take action? The cost of living crisis is widening the gap even further and is evident in the divergent consumer responses to budgeting.
This trend reflects the enduring gender inequalities in many households, with women shouldering more of the responsibility for household tasks such as food shopping meaning they are more likely to be hyper aware of the price hikes on daily essentials. Even having your period has become more expensive during the cost of living crisis with an average 10% rise.
Undoubtedly, the gender pay gap is also a major contributor to this problem. Women still earn less than men, according to the Office for National Statistics the figure is 8.3% across full time workers. Data from the ONS indicates women are three times more likely to work part time, most likely as a result of caring responsibilities, reducing earnings further, and resulting in women being 35% more likely needing to use buy now pay later to manage their finances.
This vulnerability can further fuel anxiety among women, leading to more significant shifts in their behaviour. Recent research from the Mintel Report, Managing Household Finances, confirms that women are less likely to enjoy managing household finances, indicating a lack of confidence in this domain. They are also 33% more likely to feel that ownership of stocks and shares is too risky an investment for them.
It's not a huge leap to suggest that where women are impacted at the bottom of the socioeconomic ladder who are struggling to live within their financial constraints, that same lack of confidence is holding women back from truly maximising their financial potential and achieving long-term wealth growth.
When women don't feel empowered to take control of their finances, they may miss out on crucial opportunities for savings, investment, and retirement planning. This not only has an impact on their individual financial outcomes, but also on the broader economic landscape.
So what can we do to address this issue?
1. Provide financial education tailored to women's needs by offering workshops, webinars, and articles that simplify complex concepts and help women make informed decisions.
2. Address women's unique financial needs in messaging and services by acknowledging factors such as longer life expectancy, the gender pay gap, and the impact of caregiving responsibilities on their financial planning.
3. Collaborate with women's groups to create relevant content that resonates with female clients, ensuring that the materials address their specific concerns and challenges.
4. Foster a supportive and inclusive environment for women clients by training staff and yourself to be empathetic and sensitive to their experiences.
5. Promote female role models and success stories through testimonials, case studies, or guest speakers, inspiring women to believe in their own financial potential and motivating them to take control of their financial futures.
6. Leverage technology for accessible financial resources, such as user-friendly mobile apps, online calculators, and interactive tools, enabling women to easily track expenses, set goals, and monitor their progress on their financial journeys.
By focusing on the needs and concerns of women, brands can tap into a huge, underserved market and establish themselves as leaders in this space. And let's not forget the importance of building trust - by demonstrating a genuine commitment to helping women take control of their financial futures, brands can create a lasting relationship with this valuable demographic.
Let's tackle the issue of the women's financial confidence gap head on, but also take time to recognize the enormous potential for growth and differentiation in this space. By doing so, financial brands can establish themselves as true champions of women's financial empowerment and reap the rewards that come with it.
