Constituting 12.1% of the total HNW population, 25,000 of French HNW investors are female, making this a lucrative target segment for wealth managers, according to GlobalData, a leading data and analytics company.
According to the company’s latest report, ‘Wealth in France: HNW Investors 2019’, only a few other countries in Europe have a higher proportion of female HNW investors. The report explains how targeting the sizable female demographic with dedicated services will aid wealth managers in growing AUM, and separating themselves from competition in the market. Yet, very few providers have built a wealth proposition around females in France.
Sergel Woldemichael, Wealth Management Analyst at GlobalData comments, “As the majority of France’s female HNW investors are of younger age compared to their male counterparts, they are likely to be managing multiple responsibilities such as careers and family life. Wealth managers will do well to target them with less time-consuming discretionary mandates, rather than advisory ones for example.”
France is home to the largest global proportion of HNW women (33%) that work in the financial services industry. However, this will create a challenge for wealth managers, as these HNW individuals are more likely to use their employer as their wealth provider. In order to turn heads, wealth managers should introduce a strategy that meets the distinct needs of females, which is lacking in the French wealth industry.
Woldemichael adds, “Within the wealth industry, it is becoming more apparent that female investors prefer to be in an environment with a healthy level of gender equality, or, receive advice from the same gender. With relatability being an important aspect when receiving financial advice, wealth managers that lack in female advisors should begin recruiting to improve their brand image and attract more female HNW individuals.”