Contributors
Over the past two years, the world has changed in fundamental ways for everyone, but most especially women who have needed to redefine their positions in society and re-evaluate what is important to them. More than ever, women are committed to making a difference in the world.
At the core of this rubicon is the concept of wealth management. Historically, this has been a male-dominated endeavor but today we need to re-evaluate this impression as women become the new face of wealth. As more women take their rightful place at the investment table, financial institutions must realize that it is imperative both to attract and retain female clients.
To do this successfully, they need to understand women’s differentiated needs, preferences, and behaviors when it comes to managing their money. They can then diversify their offerings, making their portfolios attractive to their clientele’s unique needs. At UBS, we understand the purpose and can reimagine and redefine the power of investing for our female clients.
Altruistic Motivation
The impact of Covid has affected the economy tremendously. It has allowed women to see what is important to them, many leading the way by using their money to fulfill their purpose and create positive change.
Many have ensured that their investments align with their values, being more likely to intentionally buy from companies that have a positive environmental or social impact. Women are also more likely than men to invest on the basis of their values, favoring funds that not only perform well but also create a positive impact, as opposed to investing solely for performance. Women do not just want to boost the bottom line; they also want to help develop the communities we live in, by investing in education, health care, and our planet.
While the altruistic motivation behind the ideas is admirable, the execution is far more complicated in practical terms. Women today face many challenges when it comes to ensuring financial success, regarding both funding and empowerment. Attitudes towards women and conscious and unconscious biases are major barriers for female entrepreneurs seeking funding.
Historical and social precedents still see married women globally deferring to their spouses for financial decisions. Another consequence of these prevailing attitudes toward gender roles means women continue to be viewed as the primary caregivers in families. However, this is not necessarily factored in at the workplace. Attitudes to wealth management and gender also vary across cultures. According to the BCG report Managing the Next Decade of Women’s Wealth, while Middle Eastern women respondents tend to be less involved in financial decisions, in Asia most female respondents said they take the lead in their households.
Research shows that women are better traders and investors than men, according to an article written by Emily Birken and Benjamin Curry – Forbes Advisor. Women live longer than men and therefore financing for longevity is vital. Women are risk-aware when it comes to investments and plan for life stages and important events. They make decisions according to facts and data, trade less, and make long-term investments.
Remote work and flexible working hours, especially during the pandemic have assisted women to balance family and work effectively. At the same time, some women found themselves out of the job market during the pandemic.
Economic Power
Women have become more resilient, resulting in them becoming extremely adaptable in the ever-changing corporate environment. As women, we need to be our own pathfinders and take control of our financial education and wellbeing. With a third of the world’s wealth under women’s control today, women have become a sizeable economic force, adding USD 5 trillion to the wealth pool globally every year.
Increased wealth creation enables women to use their wealth not only for their own education, health and well-being, but to advance the well-being of their communities. Women who lead in long-term financial decisions are paving the way for those who aspire to shatter the glass ceilings that have prevented women in the past from reaching their full potential.
The authors are Hila Goldenberg, CEO of UBS Wealth Management Israel, and Kerrin Firer
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