By Nita Shivdasani and Mathew Vaidyan

Globally, on average, women outlive men. One of the significant implications of this statistic is the critical need for women to be prepared to make informed financial decisions. Further, in an ever-evolving world where women’s wealth is growing faster than men, there is an increasing urgency to shatter the glass ceilings between women and wealth.

For women who have managed to break through this glass ceiling, wealth management is the order of the day, as they are increasingly looking to take charge of their finances. The problem, however, is that age-old biases result in women not receiving the sort of financial advice that their male peers might. Low financial literacy among women has stymied access to superior financial products because women are resultantly categorised as conservative and risk-averse. This has led to women being recommended simplistic, low-risk (and consequently low-return) products. Unconscious biases connected to the financial literacy of women have a role to play in the investment decision-making process.

Unsurprisingly, a UBS Global study reported that women are not satisfied with the quality of financial advice they receive. Another survey by DSP Mutual Fund showed that two out of three women in India consult their spouses prior to making investment decisions. With women now controlling a third of the world’s wealth, the knock-on effects of this issue are massive.

Also Read: Why is it important to educate your children about money?

Augmenting Wealth Management for Women

For women to truly be financially empowered, and to advance and develop their wealth creation aspirations, there needs to be a transformation in the way women investors engage with their wealth managers. This transformation demands a two-way approach –

i. From wealth managers, to provide a distinct approach for their women clients, understanding their motivations, goals, and values, while considering the social structures that make women’s wealth objectives unique.

ii. From women investors, to seek such wealth management relationships that enhance the entire investing experience, by enabling them to take an active role in wealth creation and preservation and providing the support to get well-versed with contemporary financial products and understand the risk-return trade-off.

The core of this augmented model is to help women navigate the byzantine world of financial management by providing the entire gamut of financial advice — from listed, unlisted, and offshore investments to estate and succession planning.

Taking a step further, this wealth management model should be built on a healthy mix of IQ and EQ. Financial prudence and emotional needs are not mutually exclusive. There needs to be an earnest effort to escape these rigid boundaries, utilising emotional intelligence when dealing with sensitive situations. This may include sensitive scenarios such as property disputes among siblings, financial planning for children, and asset separation post-divorce amongst others.

The Trident of Wealth Management for Women

Beyond financial services, there are 3 key factors that form the trident of this augmented wealth management offering catering to women investors –

a. Financial Literacy

Financial literacy is the foundation of this model. The women investors can be empowered with tailor-made resources such as financial coaching, a content repository with updated information about contemporary investment products, and interactive workshops. Armed with the tools to make an informed decision, women can choose investment products that truly suit their appetites.

b. Network Effect

The shackles of imposter syndrome often create self-doubt among successful women. Building a close-knit network of women leaders is an integral element of women-focused wealth advisory. In conjunction with education, this model facilitates networking events spearheaded by experienced finance professionals. Access to exclusive, by-invite sessions, brings together eminent women leaders who can share inspirational stories about their journeys to the top of India’s corporate mountain. These curated events and networking sessions reiterate the power of the community, forging long-term connections among accomplished professionals.

c. Wealth with a Purpose

Women are catalysts for change. Be it through their philanthropic initiatives or through their charitable works, they have been change-makers throughout history. A 2021 survey showed that women have a higher propensity to donate to charitable causes than men. Women leaders like Rohini Nilekani and Sudha Murthy are renowned for their philanthropic contributions. A targeted and well-crafted philanthropic strategy can help amplify the impact of women’s generosity. Hence, outcome-oriented philanthropic interventions is the third integral component of this model.

The tip of this trident is bespoke add-ons such as concierge services – art investments, next-gen education, and professional consulting, and a technology platform that brings information to their fingertips, allowing them to view dynamic financial data—including asset allocation, portfolio returns, and historical investment performance—on a mobile application.

Today, women are no longer content taking a back seat in handling their finances. A transformed wealth management experience that has equality baked into its DNA could prove to be a real game changer propelling further economic progress of women.

(Nita Shivdasani is Executive Director, Head of Heritage, Waterfield Advisors and Mathew Vaidyan is Senior Manager, Relationship Management, and manages over USD 100 million worth of assets on behalf of Waterfield’s women clients. Views are personal)