Are men and women really that different when it comes to the world of financial investment? According to Sallie Krawcheck – CEO and co-founder of Ellevest, a ‘robo’ investment site targeted at women – there might be more than you think.
Advice Tailored to Suit Women
Krawcheck, whose career has included executive positions at Citigroup and Bank of America, has observed that while men are more comfortable with answering questions about the level of financial risk they’d be willing to take, women tend to be more cautious about their response on such matters. Based on research into behavioural differences, and taking into account womens’ tendency to live longer and earn a lower average wage, Ellevest has been tailored to make women feel more comfortable when visiting the site to choose their financial investments.
Ellevest is not the only female friendly website dedicated to women’s finances. For example, Evolution for Women focuses on the financial aspects relating to turning points in life that resonate with women, such as starting a family or returning to work after having a child. The ‘feminine touch’ is very much present in their branding, and is designed to appeal specifically to female clients. On the other hand FFM (Female Financial Management) offers financial and investment advice to both male and female clients as well as couples, but their advisers are female only.
So, what’s so special about female investment advisers? Sarah Pennells of SavvyWoman, a site focused on providing money tips for women, acknowledges the advantages female financial advisers can bring in understanding their female clients’ needs. But she also notes that many women will be just as comfortable talking to a male financial adviser as a female one.
Tools of the Trade
Regardless of gender and focus, robust back office systems for financial advisers are essential to enable them to provide sound and suitable financial advice for their clients. Independent financial adviser software developers such as https://www.intelliflo.com/ constantly update and evolve their systems to comply with ever changing legislation and regulatory requirements.
While Sallie Krawcheck and others may have identified a gap in the market for a service tailored to suit female investors, the underlying requirements are the same. Profiling clients and assessing their risk tolerance are key factors to providing suitable investment advice.