Women today create, inherit and control a greater proportion of wealth than ever before, according to a new report from HSBC Private Bank.
The report found that many financial institutions are still failing to adapt their approach to women’s financial needs, a finding that the head of HSBC Private Bank in the Channel Islands and Isle of Man believes should resonate with local institutions.
Women and Wealth: A Global Opportunity finds that wealthy women have historically been under-served compared to men, as many financial institutions have yet to fully embrace a client-centric approach to engage female clients. This is partly as many are failing to understand some of the gender differences between male and female investors.
The report, which is the latest in HSBC Private Bank’s Global Wealth Focus series, shows women are more likely to believe the purpose of their wealth is to plan for retirement or to fund their children’s education. More women also want to make a positive impact on society and are 9% more likely to support philanthropy.
As women’s wealth grows – with approximately 40% of investible global wealth set to be controlled by women in the next five years, amounting to USD113 trillion in assets – there are clear opportunities for firms to adapt their approach.
- Investment access: Women investors remain underrepresented in private markets and direct investment opportunities. Private banks have an opportunity to expand access and engagement in areas such as private equity, venture capital and co-investments
- Advice and engagement: Many women report lower confidence in investment decision-making, reflecting an industry that has historically been designed around male clients. There is an opportunity for private banks to provide clearer advice, education and engagement tailored to women investors
- Entrepreneurial wealth: Female entrepreneurs continue to face barriers in building and scaling businesses, including access to capital and networks. HSBC Private Bank research also shows they are 6% less likely to have a mentor to provide business advice and guidance.
Anthony Hingley (pictured), Head of HSBC Private Bank, Channel Islands and Isle of Man, said: “As jurisdictions that specialise in supporting the management of wealth on behalf of private investors and families, the findings of this latest report should hit home in Jersey, Guernsey and the Isle of Man. A historic transfer of wealth is under way, and women aren’t just taking part – they’re leading it. At an institutional and a jurisdictional level, we need to be alive in the islands to the increasing demand for a full suite of world-class investment solutions to meet the specific needs of women investors.”