The Women and Wealth report, which was based on analysis and interviews with a variety of female entrepreneurs, found that the gender wealth gap has steadily narrowed in recent years meaning that more women are now likely to require financial advice.
However, it concluded that many financial advisers wrongly categorised women as risk-averse investors and must change this “old-fashioned” mentality if they want to capitalise on this emerging group of high net-worth clients.
According to the findings, the growing status of female entrepreneurs is representative of a changing culture of risk-taking to maintain and generate wealth.
The report said: “The interviews conducted… showed that women do not necessarily see risk differently or want to be approached in a very different manner than their male counterparts.
“To view women as a coherent group when it comes to financial advice could prove to be a mistake and shy a potential client away to seek advice elsewhere.”
One trend, however, that was noted as off-putting for women was the use of financial jargon. According to the report, some female entrepreneurs are not familiar with technical phrases and required simpler explanations.
These thoughts were echoed by Afi Ofori, managing director and founder of Zars Media, who said she turned offers from banks down because of “bad experiences” of advisers using too much jargon.
Adviser comment
Anna Sofat, managing director of London-based Addidi Wealth, said: “I would say, generally speaking, entrepreneurs are used to taking risks and are quite comfortable with that. Younger women too, before you have families and such responsibilities there can be a feeling of having less to lose, therefore you are more prone to taking risk.”
