Wealth Management for Women

7/29/2019 Wealth Management for Women

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Leveling the Playing FieldUpgrading the Wealth Management Experience for Women

Peter Damisch, Monish Kumar, Anna Zakrzewski, and Natalia Zhiglinskaya

July 2010


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As wealth management clients, wmen are bth signicant an nervale. The cntrl abt

27 percent the wrls wealth (meaning that the ecie where the assets are investe), et

mre than hal the wmen we srvee eel that wealth managers cl a better jb

meeting the nees emale clientsan nearl a qarter think that wealth managers cl

signicantly imprve hw the serve wmen.

The srve, cncte in earl 2010, was prmpte b r annal glbal-wealth research, which shwe a

isparit between the signicant nmber wmen clients an the level service the tpicall receive.

The srve ha abt 500 respnents, each with at least $250,000 in bankable assets. It was cmplement-

e b mre than 70 interviews with private-banking specialists an wealth wmen arn the wrl.

Man wealth managers either verlk wmen as a iscrete an imprtant grp r else se spercial

strategies t reach them. In act, sme the mst cmmn appraches are wrse than ineectivethe

can alienate the ver clients there meant t attract, particlarl i the revlve arn wmen-labele

prcts, pitches, r prmtins that cme acrss as patrnizing r cntrive. Wealth managers nee a

mre nance apprach.

Wmen tl s, in n ncertain terms, that the want a level plaing elthe want the same attentin,

avice, an terms an eals that men getwith avisrs prviing clear an bjective recmmenatins

base n their gals an risk prles. At the same time, hwever, mre than 70 percent the respnents

sai that wealth managers shl tailr their services r wmen. This ma seem cntraictr, bt the

esire r a tailre apprach is reall a sign that wmen have istinct nees an expectatins as clients,an that private banks have mre wrk t when it cmes t the mst imprtant axim in wealth

management: know your client. Pt simpl, wmen want their avisrs t nerstan wh the are an

what the want.

Leveling the plaing el presents a signicant pprtnit r wealth managers, man which are

ghting harer than ever t win back r retain clients. B recgnizing bth the imprtance wmen an

the reasns wh s man are isappinte with the instr, wealth managers can attract new clients an

strengthen lalt. An the can s b ne-tning, rather than reinventing, their apprach t serving

wmen clients.

An Increasingly Wealthy and Independent Group

Wmen cntrlle an estimate 27 percent, r abt $20 trillin, the wrls wealth in 2009.1 (See

Exhibit 1.) The percentages were highest in Nrth America (33 percent), Astralia an New Zealan (31

percent), an Asia (29 percent, ex Japan), an mch lwer in Latin America (18 percent), Japan (14 per-

cent), an Arica (11 percent). In Erpe, the percentage was highest in Western Erpe (26 percent) an

smewhat lwer in Rssia (21 percent) an Eastern Erpe (19 percent, ex Rssia).

Nrth America an Western Erpe accnte r mre than tw-thirs, r $14.3 trillin, the wealth

cntrlle b wmen. These are the tw largest wealth markets in the wrl, accnting r abt tw-

thirs glbal wealth as wellbt the als ha relativel high percentages wmen-cntrlle wealth.

Histricall, wmen in these regins have ha g access t pressinal an ecatinal pprtnities.

Leveling the Playing FieldUpgrading the Wealth Management Experience for Women

1. All igres in this paper that reer t wmen-cntrlle wealth are base n estimates wealth wne b clients with at least$250,000 in assets ner management (AM).


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Leveling the Playing Field 2

While the percentage wealth cntrlle b wmen has change nl graall ver time, the amnt

wealth cntrlle b wmen has been n a rllercaster rie since the start the nancial crisis, mirrr-

ing the verall mvement in glbal AM. Aer alling sharpl in 2008, the amnt wmen-cntrlle

wealth increase b 16 percent in 2009. (See Exhibit 2.) It grew b nearl 30 percent in Asia (ex Japan) an

b 24 percent in Astralia an New Zealan. In all ther regins, it increase b anwhere rm 13 t 18

percent, except in Japan, where it grew b nl 2 percent.

The amnt wealth cntrlle b wmen is expecte t grw at an average annal rate 8 percentrm ear-en 2009 thrgh 2014, slightl abve the 7 percent rate rm ear-en 2004 thrgh 2009.

Emerging markets are expecte t take a characteristic lea in the grwth wmen-cntrlle wealth

an wealth in generalver the next several ears.

Several lng-term trens have ele the grwth wmen-cntrlle wealth. first an remst, wmen

have becme mre active in the wrkrce. frm 1980 t 2008, the nmber wmen in the glbal

wrkrce ble t 1.2 billin. Whats mre, the incme gap between men an wmen has ecline, s

wmen are bth wrking mre an earning mre. These changes have le t an increase in the prprtin

wmen whse wealth is entirel sel-earne. In r srve, 42 percent the respnents erive all

their wealth rm their wn salaries an bnses.

Secn, as a reslt wrking mre an accmlating wealth, wmen have gaine bth the cnence

an the experience t becme mre invlve in amil nances. Wmen nt nl earn mre themselves,sai Pressr Thmas dren, irectr the Institte r the Science Ethical Wealth at Sigmn

fre universit, bt ver the last ecae r tw, the have cme t pla an increasingl imprtant rle

in managing a amils mne.

Thir, mre wmen are inheriting wealth, wing t their lngevit. As a reslt, wmen are mre likel t

assme cntrl ver lmp sms wealth. In sme cntries, particlarl in the Mile East an Asia,

wmen cntine t inherit less wealth than men, bt the gap is narrwing as these scieties cme t

accept the legitimac wmen as primar inheritrs.

The three trens have imprtant implicatins r wealth managers:

Wmens wealth will cntine t grw. We expect the increase t be riven mainl b salaries an b-nses, which will grw in line with wmens ecatinal an pressinal evelpment, as well as b the

cntine narrwing bth the incme an inheritance gaps.

9.0 0.5 2.8 5.3 0.5 0.1 0.04 0.4 1.5 0.04 20.2

AuM controlled bywomen, 2009 (%)

40

30

20

10

0

3331 29 26

22 21 19 18 14 11

27

NorthAmerica

1

Australia andNew Zealand

Asia(ex Japan)

WesternEurope

MiddleEast

Russia

Eastern Europe(ex Russia)

LatinAmerica

2

Japan

Africa

Global

AuMcontrolledby women($trillions)

Exhibit 1. Women Control 27 Percent of Global Wealth

Source: BCG Global Wealth Market-Sizing Database, 2010.

Note: AuM controlled by women represents wealth that is invested on the basis of decisions made by women; data reflect wealth ownedby women with more than $250,000 in AuM. AuM in 2009 was calculated using 2008 U.S. dollar exchange rates.1The United States and Canada.2South America, Central America, and Mexico.


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Wmen will accnt r a grwing prprtin high-net-wrth (HNW) clients, which are generall ene as having between $1 millin an $20 millin in wealth. Several private-banking experts nte

that wealth managers nee t be prepare r an pwar migratin wmen int the HNW segment,

especiall in the emerging markets.

Wmen will becme mre inepenent when making nancial ecisins. In r srve, 30 percent

wmen sai the make their investment ecisins alne rather than reling n a spse r ther amil

members. We expect this percentage t rise as wmen accmlate bth nancial experience an wealth.

The tren will be mre prnnce in markets that have high levels entreprenerial activit. We are a

ng market, remarke an Eastern Erpean private banker, an mre than hal r emale clients

are entrepreners. Their prcienc level in nancial matters is similar t that men.

An Uneven Playing Field

Man rivers issatisactin with wealth managers are niversal rather than specic t wmen clients.

fr example, 18 percent r respnents were issatise with cmmnicatin an reprting an 14

percent were issatise with the qalit avice. (See Exhibit 3.) other perennial isses pppe p as

well, sch as the pr accessibilit avisrs, the lack tailre sltins (ne size es nt t all),

an the verabnance breacrac an paperwrk.

Sme 27 percent the wmen srvee were nt satise with their private banks, largel becase the

actrs escribe abve. The level iscntent was highest amng wmen with $1 millin t $5 millin in

AM. Clients in this segment, bth men an wmen, smetimes eel caght in the mile: their invest-

ment nees are t sphisticate t be llle b a retail bank, et the eel t insignicant, given their

level wealth, t reall matter t a private bank.

Bt the srve als reveale isses that were niqe t wmen. The majrit srve respnents

AuM controlled by women, 2009 ($trillions)

517

2014

11.7

2009

9.0

2008

7.7

913

2014

7.9

2009

5.3

2008

4.7

1317

2014

0.2

2009

0.1

2008

0.1

1429

2014

5.3

2009

2.8

2008

2.2

22

2014

1.6

2009

1.5

2008

1.4

816

2014

29.0

2009

20.2

2008

17.3

524

2014

0.6

2009

0.5

2008

0.4

1318

2014

0.6

2009

0.4

2008

0.3

1915

2014

0.1

2009

0.0

2008

0.0

815

2014

0.8

2009

0.5

2008

0.5

815

2014

0.1

2009

0.0

2008

0.0

Compound annual growth (%)

North America1

Middle East

Asia (ex Japan)

Africa

Australia andNew Zealand

Latin America

2

Eastern Europe(ex Russia)

RussiaWesternEurope

Japan

Global

Exhibit 2. Women-Controlled Wealth Made a Strong Comeback in 2009

Source: BCG Global Wealth Market-Sizing Database, 2010.Notes: AuM controlled by women represents wealth that is invested on the basis of decisions made by women; data reflect wealth ownedby women with more than $250,000 in AuM. AuM in 2009 and 2014 were calculated using 2008 U.S. dollar exchange rates. Projections for2014 assume that the share of wealth controlled by women remains stable over the next five years.1United States and Canada.2South America, Central America, and Mexico.


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55 percentelt that wealth managers cl a better jb meeting the nees wmen. (See Exhibit

4.) Twent-r percent thght that private banks clsignicantly imprve hw the serve wmen. The

issatisactin stems almst entirel rm the nshakable perceptin that the plaing el is nt even

that men get mre attentin, better avice, an smetimes even better terms an eals. This sense

sbrinatin was repeate time an again in r interviews:

Eqal access t inrmatin, eqal cnsieratin an terms r lans, eqal access t

special eals ging n at the bankthats what I am lking r.

Married, North America

Asie rm nt taking wmen serisl in general, [wealth managers] shl be csing n

generating the best retrns r the client, regarless gener. I nt nee a tea part. Single, North America

What banks nee is a revltin like the atmtive instr ha: t nall nerstan

that wmen nt nl sit in the cars bt als chse, b, an rive them.

Married, Spain

Banks are spening their marketing bget n men b spnsring sprts sch as tball r

rgbMale clients als get invite t crprate bxes at games, bt as a wman I nt get

that kin treatment.

Married, New Zealand

The prblems that case wmen t eel like secn-class clients are eep-seate. The stem rm experi-ences in the avisr prcess as well as rm the cmmnicatin stle private banks an relatinship

managers (RMs).

Level of satisfaction with wealth managers(% of respondents)

Key areas that needto be improved (% of respondents)

80604020 1000

80604020 1000

$250,000$500,000

$500,000$1 million

$1 million$5 million

$5 million$50 million

Very dissatisfied

Somewhat dissatisfied

Somewhat satisfied

Very satisfied

Nothing

Performance

Product offering

Services

Bureaucracy/flexibility

Accessibility/convenience

Pricing

Being proactive

Trust

Managing women-specific issues

Advice quality/guidance

Tailored, goal-oriented approach

Communication/reporting

14 43 43

0

13 53 2014

32 47 192

24 55 192

18 56 206

20151050

18

15

14

11

8

8

2

4

5

5

5

2

1

Overall

ClientSegment

Exhibit 3. Discontent Is Highest Among Clients with $1 Millionto $5 Million in AuM

Sources: BCG Women in Wealth Management Survey, 2010; BCG analysis.Note: These results are based on responses from 168 participants; not every survey question was answered by all respondents.


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The Advisory Process

The avisr prcess is at the heart the wealth management experience, an it trns almst entirel nan avisrs abilit t evelp alternatives an recmmenatins that are base n a clear nerstaning

the client. Man wmen, hwever, sai their avisrs r RMs assme that the have a lw risk tlerance

an ths prvie nl a narrw range investment sltins. Sme sai that the were given mbe

wn versins the stanar erings. others sai that their avisrs were t qick t cs n strat-

egies r prcts that have less an emphasis n perrmance, sch as sstainable r green invest-

ments, n the assmptin that wmen are mre attne t scial isses. feeling steretpe rather than

nerst, several wmen in r srve ha pte t manage their investments n their wn.

Sme wmen als eel that wealth managers nt pa engh attentin t circmstances that can

raicall change their pririties. A wmans investment nees an risk prle can be aecte b majr

lie changes, sch as marriage r ivrce, the birth a chil, r the eath a spse. The same can be

sai men, crse, bt the realit is that wmen are mre likel t have their nancial pririties

rearrange b sch events. Wmen, r example, are mre likel t rg earning an incme aer thebirth a chil. The are als mre likel t assme new nancial respnsibilities, smetimes with little

r n preparatin, as a reslt a ivrce r the eath a spse. All a sen I ha a lt mne

an ha t manage it, ne wman sai. Bt I nt have time r it. I wrk an take care m three

chilren.

Mre namentall, man wmen eel that the avisr prcess is geare twar shrt-term reslts, an

that it iscnts the signicance lng-term bjectives that reect the impact the majr milestnes in

a persns lie. This is a nctin incentive sstems an cmpan cltres, bt it is als a shrtct an a

smptm a spercial avisr-client relatinship. It takes time t nerstan a clients lng-term

bjectives. The RM i nt remember anthing that ha been iscsse in r previs meeting, an

knew nthing abt mer m sitatin, sai ne wman.

Communication StyleWmen were critical the emeanr their RMs. Man tl s that their avisrs nt take them

Still, the survey suggeststhat wealth managers need tomake subtle rather than

sweeping changes

80

60

40

20

100

0Strongly disagree

Somewhatdisagree

Somewhatagree

Stronglyagree

8

20

58

14

More than 70 percentof respondents believe thatwealth managers should

tailor their approach for women

More than half of respondentsbelieve that wealth managerscould improve their service

to women

"I believe a bank shouldhave a service approach

tailored for women."

80

60

40

20

100

0

No need forimprovement

Need forimprovement

Need forsignificantimprovement

45

31

24

Could your private bank improvehow it meets the needs of

women clients?

Productoffering

Servicemodel

Few respondentsraised issues withthe actual products

Many more highlightedproblems in the advisoryprocess, along with thecommunication style ofbanks and relationshipmanagers

% %

Exhibit 4. Women Want Wealth Managers to Recognize Their Needs

Sources: BCG Women in Wealth Management Survey, 2010; BCG analysis.Note: The question on the need for improvement had 141 respondents, and the question on having a tailored approach had 144respondents; not every survey question was answered by all respondents.


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serisl, which mae r -ptting an smetimes hmiliating interactins. one wman sai that her

bank aresses letters t her hsban, even thgh she manages their investments. Several tl s that

their RMs atmaticallan cnspicslassme that the man has the nal sa abt an invest-

ment. M hsbans incme is lwer than mine, an that is a sitatin that banks in German nt

knw hw t eal with, remarke ne wman. The alwas ecie that there mst be sme mistake,

which makes meand m hsbaneel ncmrtable.

Why Do So Many Wealth Managers Miss the Mark?

When it cmes t avising wmen, man wealth managers are ptting the accent in the wrng place.

The ten t alter their avice base n steretpes that the shl ignrewhile verlking material

ierences between men an wmen as wealth management clients.

Steretpes, b enitin, are versimplicatins an can lea t awkwar exchanges an straine

relatinships. Still, r srve an interviews, cple with past BCG research an prject experience

cmparing the investing preerences wmen an men, trne p several imprtant traits share b

man emale clients.2 These traits, in trn, lea t expectatins that set man (bt b n means all)wmen apart rm men.

Women oen focus on long-term investment goals and seek holistic advice.Wmen ten t set clear

galssall in respnse t, r in anticipatin , the lie changes mentine earlieran the want

their investment strateg, an its nging exectin, t revlve arn these bjectives. Wealth is a

means lie planning rather than a gal in itsel, remarke ne srve respnent. This perspective

has two important implications for wealth managers:

first, wmen are mre intent n nerstaning the risk-retrn prles investments as the relate t

their verarching gals an nancial secrit. B the same tken, the are less likel t be istracte b

shrt-term perrmance. This lng-term view is reecte in wmens investment strategies. Mre than 70

percent the wmen in r srve avr balance r cnservative investment strategies; amng wmenler than 50, the percentage is clse t 95 percent.

Secn, becase their gal-riente minsetan, in sme cases, the pressre t manage bth career

an hsehl respnsibilitiesmst wmen want avice an prct inrmatin that is nt mle

b nnecessar etails. I want statements that are clear, eas t rea, an can be interprete n n sleep

r while parallel-prcessing amil chres r wrk, ne wman sai. on r hrs sleep, while n a

cnerence call rm wrk, I want t be able t srt thrgh persnal nancial things. yll almst never

have m ll attentin, s make [the reprting] eas, clear, an hnest.

Empathy matters. Men ten t view their wealth-management relatinships thrgh a bsiness-riente

lens. Their avisrs can establish trst airl qickl b acilitating ecient transactins an elivering

shrt-term reslts. Mst wmen, n the ther han, want their banking relatinships grne in empa-

th an cstmize avice. Ever relatinship is persnal, sai ne wman, incling a banking ne.fr mst wmen, trst evelps slwl an is base n an avisrs abilit t recgnize an respn t her

lng-term bjectives. A small minrit wmen believe that emale RMs wl be better at biling sch

relatinships, bt the vast majrit are inierent t the gener their avisr. (See the siebar Are

female RMs Better at Cnnecting with Wmen?)

Women are eager to learn. Interviews with clients an private bankers inicate that man wmen are as

sphisticate in nancial matters as men. Bt cmpare with men, wh en hie their lack knwlege

abt nancial matters, wmenregarless their level nancial knwlegeare generall pen t

learning abt investments an wealth management thrgh seminars r ther events.

2. fr mre n BCGs research int the emale ecnm, see Wmen Want Mre: Hw t Captre More Than yr Share thefemale Ecnm, BCG opprtnities r Actin, Agst 2009, an Wmen Want Mre (in financial Services), BCG opprtni-ties r Actin, octber 2009.


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These generalizatins shl nt be taken as hl writ, crse, bt the she sme light n wh

wmen are issatise with private banks. The als prvie a sel backrp r nerstaning wh s

man private banksespite recgnizing an targeting ther iscrete grps clients, sch as ctrs r

lawersstill have a service gap between male an emale clients.

The gap varies amng wealth managers. At ne extreme are private banks that simpl nt acknwl-

ege wmen as an imprtant segment. Man Erpean banks, in particlar, see wealth wmen as t

small a segment t jsti a separate apprach. other banks nt see wmen as a istinct client grp.

Wmen nt nee a ierent apprachthe want the same service an prcts as men, sai a

Erpean banker. This is tre, crse, bt it is nt the whle str.

other banks believe that wmen, as a grp, are bth imprtant an istinctbt the havent llwe

thrgh b researching wmens preerences r evelping strategies t aress their nees. In manemerging markets, where wealth is grwing at abve-average rates an the avisr bsiness is still

expaning at a nice pace, banks have less incentive t invest in a mre sphisticate segmenting clients.

Instea, the rel n traitinal metrics sch as risk prles an levels wealth.

Sme banks have wmen-cse initiatives. In man cases, hwever, these erts invlve little mre

than repackage prcts r targete marketing campaigns. Sch erts can easil cme acrss as sales

pls rather than meaningl attempts t eliver smething that wmen vale. The ma even alienate

mre clients than the attract. I nt think anne shl have a wmen-cse apprach, sai ne

wman. The shl be tailring their apprach r everneSme tr b ering pink st, which is

a bit cntrive.

A small nmber banks have evelpe geninel persnalize erings that avi cming acrss assimplie r patrnizing vertres an actall respn t the nees an expectatins wmen clients.

one Erpean bank, r example, reene its apprach t acqiring an serving wmen an nw

The proportion of female RMs, based on estimates

developed through our research and interviews withprivate bankers, ranges from 10 percent in the Mid-

dle East to 60 to 65 percent in Asia and Eastern Eu-

rope. In Western Europe, 25 to 30 percent of RMs are

female.

Experts in private banking told us that female RMs

are generally very good at forming strong relation-

shipsregardless of the clients gendermainly be-

cause they tend to be more empathetic and are more

likely to establish a personal connection with the cli-

ent. In some regions, such as Eastern Europe, female

RMs are also considered more trustworthy and reli-

able than male RMs. It should follow, then, that fe-male RMs would be better at developing client rela-

tionships with women.

In our survey, however, 85 percent of women said

that they were indierent to the gender of their RM.

They cared much more about the advisors personal-

ity and qualications. I want the best person for the

job, said one respondent. Only 11 percent said that

they preferred having a female RM; these respon-

dents said that a female RM would better under-

stand their needs and would be less intimidating

and more down to earth. The remaining 4 percent of

women were worried that female RMs might betime-pressured (having to juggle a family and a ca-

reer) or more likely to take time o.

Although most women are not concerned about hav-

ing a female advisorand the common practice

among banks is to match clients with RMs based on

the compatibility of their personalitiesthere is still

an argument for wealth managers to actively recruit

women, in part to increase diversity in the workforce

but also to capitalize on female RMs strengths when

it comes to building relationships. Banks and broker-

age rms can make it easier to attract and retain fe-

male advisors through teaming or job-sharing mod-els, which ensure continuity for both the client and

the bank when an advisor takes maternity leave, for

example.

Are Female RMs Better at Connecting with Women?


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generall reqires wealth planners t becme invlve earl in the relatinship, which helps ensre that

the nerstan the clients nees an are able t prvie hlistic avice.

Upgrading the Client Experience for Women

Private banks have g reasn t target wmen, given bth the issatisactin riven b gener-specic

isses an the sbstantial wealth cntrlle b this grp. Mst will n that the prblems are less abt

what the prvie r wmen, in terms prcts, an mre abt how the eliver their service. The

will als n a receptive aienceas nte earlier, mre than 70 percent the srve respnents

believe that wealth managers shl tailr their apprach r wmen.

T clse the service gap between men an wmen, wealth managers shl llw a set practices that

we call thefour Rsrecgnize, research, respn, an rene.

RecognizeThe senir leaership team shl signal t the rganizatin that wmen as a client segment are bth

istinct an imprtantan ptentiall nerserve. The shl als make a clear cmmitment timprving their apprach t serving wmen b mving awa rm spercial wmen-labele prcts

an twar a rene ering that resnates with wmen.

ResearchWealth managers nee t nerstan hw the nees emale clients ier rm thse male clients.

Reaching t irectl t clients might be the best wa t start. I expect [wealth managers] t n t

what I nee, sai ne wman, an nt t assme it. Private banks with avance market-research

nctins shl be able t pinpint isses that are specic t wmen an then translate these nings

int actinable insights. (See the siebar Hearing the Cnsmers Vice.) Bt the shl remember that

Generating and exploiting market researchknowl-

edge that brings a company closer to the hearts and

minds of its targeted consumerscan yield im-

mense impact, particularly in instances where com-

panies, at a systematic level, are blind to issues that

are critical to large groups of customers, as is the

case with women in wealth management.

Most companies, however, struggle to unlock the val-

ue of the market research function, also known as

consumer insight. This was a key nding of a Novem-

ber 2009 BCG report, The Consumers VoiceCan YourCompany Hear It? which benchmarked the consumer

insight capabilities of 40 companies in a range of in-

dustries.

Frustrations were evident among both the recipients

of market researchthe line managersand those

who generate the output. When asked whether con-

sumer insight teams consistently answer the ques-

tion So what? about the data they provide, only 34

percent of line managers said that they do. On the

other side of the coin, fewer than half of insight sta

thought that the business leaders in their organiza-

tion could pass a pop quiz on important facts aboutconsumers.

If companies are not hearing the consumers voice,

it is probably because they follow a hemmed-in ap-

proach to market research. The study identied four

stages of a companys consumer-insight capability.

At one end of the spectrumstage oneconsumer

insight is essentially an isolated order-taking func-

tion, walled o from critical business decisions. At

the opposite endstage fourit is a source of com-

petitive advantage. Its ndings inuence cross-rm

decisions such as acquisitions, prioritization of mar-

kets, and resource allocation. In our study, almost

90 percent of companies were still at stages oneor two.

To capture the full potential of consumer insight,

companies must improve the engagement model.

This involves, among other things, getting senior

managers involved and expanding the scope of the

function. Companies also need to improve the per-

formance of the function by upgrading capabilities

and focusing the team on the right activities and de-

liverables.

Hearing the Consumers Voice


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the rivers iscntent can be cmplex an sbtlean will almst certainl var epening n the

clients lie stage, pressin, amiliarit with nancial matters, an ther actrs.

RespondAn initiative targeting wmen is nt ging t lea t a raical verhal the service apprach. In act,

sme the things that wealth managers shl not , in terms respning t wmen, might be jst as

imprtant as sme things theshould .

Product Oering. Wealth managers shl nt eceive themselves int thinking that the can clse the

gap b rebraning existing prcts. Man wmen, as nte earlier, n sch erts patrnizing. The

prblems that wmen encnter in private banking stem nt rm a lack sitable prcts bt rm a

lack hlistic avice. As ne private-banking specialist acknwlege, Banks are t prct-riente

Avisr has t be base n a better nerstaning the sitatins an nees each client.

Advice. Man wmen tl s that their gener shl have n bearing n the avice the receive. In trth,

hwever, emale clients en share sme imprtant characteristics. Private banks shl cs n these

cmmn traits, bt nt t the exclsin inivial characteristics. As alrea nte, wmen ten t

cs n lng-term bjectivesan t vale the big-pictre view mre than the technical aspects inivial prcts. RMs shl keep these characteristics in min.

The Role of the RM. The imprtance the RM cannt be verstate. Imprving the [avisr] talent

pl is mre imprtant than creating a wmen-eicate ering, sai ne banker. I a bank manages

t that, then the nerling interests a wman will be met as a matter crse b thghtl an

nerstaning sta. Mre specicall, wealth managers shl train their RMs t recgnize hw certain

lie events can alter wmens risk prles. Sch mments trth prvie an nparallele pprtnit r

avisrs t becme trste partners. At the same time, hwever, RMs mst nt be captive t steretpes.

Nt all wmen are risk averse, an the care as mch abt perrmance as men . Well-traine RMs

will recgnize that sme client traits are cmmn bt nne are niversal.

Communication. While emale clients bristle at steretpes, avisrs shl recgnize that certain kins cmmnicatin an interactin cl signicantl imprve their abilit t attract an retain emale clients.

This ichtmavi steretpes bt aress cmmnalitiesleas t several s an nts r RMs:

Cater to the client, not the gender. The cmmnicatin stle shl be etermine n a case-b-case basis

an shl acknwlege the wie arra client prles.

Show empathy and build trust. female clients are likel t vale these qalities mre than men .

Avisrs nee t listen t the client an alwas keep her verarching bjectives rnt an center.

Private banking is, aer all, a peple bsiness.

Recognize and address regional and country dierences. In the Mile East, r example, high ivrce rates

in sme cntriesan the vagaries the ispsitin wealth in a ivrce settlement r an inheri-

tance sitatincan make wmens nancial well-being smewhat precaris an lea them t givemre thght t their nancial inepenence an their wealth-management nees. (See the siebar

develping an oering r Wmen in the Mile East.)

ReneWealth managers shl cntinsl mnitr client satisactin t etermine whether the ering nees

t be ajste. This will nt nl generate ieas r rening the apprach bt will als signalt bth

clients an the rganizatinthe imprtance wmen as a client segment.

As imprtant as it is r wealth managers t imprve hw the serve wmenparticlarl sinceiscntent was highest amng clients with $1 millin t $5 millin in AM (the sweet spt r man

private banks)it is eqall imprtant that the nerstan the cst artless vertres. overreacting t


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T B C G J


the prblem with graceless sltins will mre harm than g. There is a ne line between being

aware what wmen want an verstating the relevance generalizatins.

Likewise, wealth managers shl nerstan that the ierences amng inivials are ging t be ar

mre imprtant than the ierences between the geners. An initiative aime explicitl at wmen is nl

ging t scratch the srace a clients nees. Man ther actrssch as the clients stage in lie an in

wrk, her cntr rigin r resience, an her level wealthcme int pla.

Wealth managers can pt their RMs in a better psitin t initiate r enrich relatinships simpl b calling

attentin t areas where wmen generall eel nervale r verlke. Ambitis wealth-management

instittins shl evelp rbst training prgrams an incentive sstems that rive hme the impr-

tance actins that can make a meaningl ierence t wmen. The twar changes ma be sbtle,bt the can still resnate with wmenan ths lea t higher satisactin an greater lalt.

Women control about 22 percent of the wealth in the

Middle East, although there are marked dierencesamong countries. Several factors make women both

distinct as a group and increasingly important to

wealth managers. For example, high divorce rates

force women to think more about nancial security

and independence for themselves and their chil-

dren. In addition, a high proportion of female clients

are young entrepreneurs, many of whom are on the

verge of joining the high-net-worth segment. Finally,

although women tend to inherit less wealth than

men, the gap is narrowing.

Women in the Middle East have many of the same

grievances about wealth managers as women in oth-er regions. Many cannot nd advisors who take them

seriously, let alone ones they can trust. Clients who

lack a solid understanding of investments (but want

to learn) said that RMs do not adequately explain

the products and their risks. More sophisticated cli-

ents said that their advisors automatically assume

that they have a low risk tolerance and provide only

a limited range of investment solutions.

The lack of adequate nancial advice is at odds with

the complexities of womens nancial-planning

needs. In some societies, for example, it is possible

for multiple wives to inherit an individuals wealth.

In addition, a womans eligibility for nancial sup-port following a divorce is oen determined on the

basis of her current wealth, whether acquired before

or during the marriage. As a result, a womans nan-

cial well-being can be somewhat more precarious in

the Middle East, and wealth managers should there-

fore focus on a very clear value proposition: safe-

guarding a womans nancial independence and her

rights vis--vis third parties (who may stake a claim

to her wealth); preserving absolute condentiality;

and helping the client develop her nancial knowl-

edge.

Despite a strong need for a targeted approach forwomen in the Middle East, the opportunity to reach

this group has gone largely unnoticed, although the

situation is starting to change. The nancial crisis

prompted many clients to move their assets to local

banks, which are now working to upgrade their pri-

vate-banking oerings in order to retain these newly

acquired clients. A small number of banksbut only

local competitors to datehave launched oerings

that target women.

Developing an Offering for Women in the Middle East


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About the Authors

The athrs are cre members the financial Instittins practice The Bstn Cnslting Grp. Theare als part the team that prces BCGs annal reprt n glbal wealth.

Peter Damisch is a partner an managing irectr in the Zrich ce The Bstn Cnslting Grp.y ma cntact him b e-mail at [email protected].

Monish Kumar is a senir partner an managing irectr in the rms New yrk ce an the glballeaer the asset an wealth management segment the financial Instittins practice. y macntact him b e-mail at [email protected].

Anna Zakrzewski is a principal in BCGs Zrich ce. y ma cntact her b e-mail [email protected].

Natalia Zhiglinskayais an assciate in the rms Zrich ce. y ma cntact her b e-mail [email protected].

first an remst, the athrs wl like t thank the wmen wh participate in r srve an sharetheir experiences in interviews. We cl nt have written this paper witht their participatin. We alsspke with a range wealth management experts an private-banking exectives arn the wrl.The, t, mae an invalable cntribtin t r paper.

We als rew n the knwlege an experience r BCG clleages. In Asia-Pacic, we calle nNelsn Chi, Vin Kmar, Tjn Tang, an Miki Tssaka. In Erpe, we relie n daniel Kessler, KirstenLange, An Magire, an Pia Tischhaser. Jel Miz, feeric Mxi, an Anr Xavier prvieinsights int Latin Americas wealth-management sectr. In the Mile East an Arica, we calle ndglas Beal, Sven-ola Vathje, an Lnn Zvighian. frm Nrth America, we receive giance rmPal orlaner an Carrie Perzanwski. fr insights int the braer theme the emale ecnm, werelie n Michael Silverstein. In aitin, we spke with Pressr Thmas dren rm Sigmn fre

universit abt the rle wmen in wealth management.

The athrs wl als like t thank the members the cre prject team, Jith Albrecht an PatrickLehner, as well as dan Cne r his help in writing the reprt, an Kim frieman an Janice Willett rcntribtins t its eiting, esign, an prctin.

The Bstn Cnslting Grp (BCG) is a glbal management cnslting rm an the wrls leaingavisr n bsiness strateg. We partner with clients in all sectrs an regins t ienti their highest-vale pprtnities, aress their mst critical challenges, an transrm their bsinesses. or cstm-ize apprach cmbines eep insight int the namics cmpanies an markets with clse cllabra-tin at all levels the client rganizatin. This ensres that r clients achieve sstainable cmpetitiveavantage, bil mre capable rganizatins, an secre lasting reslts. fne in 1963, BCG is a privatecmpan with 69 ces in 40 cntries. fr mre inrmatin, please visit www.bcg.cm.

The Bstn Cnslting Grp, Inc. 2010. All rights reserve.7/10

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