If you want to capture the attention of female investors, avoid the aggressive sales pitch, says one industry leader.
Describing the female demographic as a tougher nut to crack, with demands and expectations exceeding those of men, Karin Mizgala, CEO of Money Coaches Canada, says tapping into this market will take much more than passing out flyers promoting a female-focused workshop.
“It’s a sincere and serious investment on behalf of the advisor,” says Mizgala, who focuses specifically on servicing women. “There’s a lot of wounding around women and money historically. I think in the industry they need a lot of hand holding and need to be really well respected.”
Recent studies report varied results on the behavior of female investors.
An OECD report, Addressing Women’s Needs for Financial Education, found that women are generally less financially literate than men. They tend to take fewer risks when investing their money with a focus on keeping the family finances secure.
Meanwhile, a study by insurance company Jackson National determined that more female investors are using advisors, with 33 per cent of study respondents reporting having a solid knowledge of financial products, terms and methods.
Additionally, research firm Phoenix Marketing International reported that female investor behaviour in the U.S. has increased by eight per cent (41 per cent to 49 per cent) over the last six years (2007 to 2013). (Continued on Page 2)