Fintech on Friday: What women want from wealth management technology

With the global income of women expected to grow from £13tn ($16tn) in 2017 to $18tn by 2022, according to the CFA Institute, attracting the business of female high net worth individuals has become a priority for the wealth management industry.

But how do the needs of female HNWIs compare to their male counterparts? Drawing on global research by FactSet among almost 400 female clients of wealth management providers, we look at female attitudes to one increasingly critical component of any wealth management proposition – technology.

1. Women are keen to adopt new technology

Female wealth management clients are marginally less likely than their male counterparts to want to trial completely new technology in wealth management (37 per cent compared to 47 per cent of men), according to the FactSet research. But that still means more than a third of female clients are keen to be on the cutting edge of new technology in the sector. A further 36 per cent are willing to use technology once it is well established.

But it should be noted that an eighth of women (13 per cent) seek to avoid technology completely in their wealth management activity compared to just 7.5 per cent of men – and this aversion still needs to be catered for.

2. They are happy to share online information if it leads to a more customised service
Three-quarters of women in the FactSet research say they are or might be comfortable sharing their browsing history with their wealth manager if it could lead to a more customised service. This rises to more than 80 per cent for purchasing history and social media profiles. To get a more personalised wealth management service, just under 80 per cent are, or could be, willing to share information on wealth and investment accounts held with other financial institutions, and 87 per cent are definitely willing or could be willing to share online information on their likes and preferences.

3. They want to use technology to help with investments decisions…

Women are also interested in being able to use technology to support their own decision-making with more than 40 per cent keen to see their wealth manager introduce platforms where they can independently purchase products or answer questions that will help them identify suitable products.

4….but are not interested in full-fat robo-advice

While they are happy to receive some platform-based guidance, only 10 per cent of female wealth management clients currently use a robo-adviser to deliver investment recommendations, compared to 14 per cent of men. Only 17 per cent of women say they would be interested in robo-advice as part of an online wealth management proposition to help them select suitable products.

5. They are comfortable using platforms

Where a wealth manager has an existing online platform, female clients are largely very happy with it. The biggest concern is that platforms don’t always feel secure – cited by 23 per cent of women. But women are likely to be less critical than men about the quality of performance data or the level of customisability offered by a platform.

6. Clarity and comparability are the online quid pro quo...

Most wealth managers seek to combine human and online interaction. If a wealth manager offered to conduct the majority of a female client’s wealth management online, she in return would want to see greater transparency of fees and charges (requested by 37 per cent of women) easier comparisons of available products and services (requested by 34 per cent), access to “unique” insight and information to help reach their wealth goals (31 per cent) and greater clarity on ongoing portfolio performance (29 per cent).

7. …while speed, personalisation and a focus on goals are wanted from new technology

When it comes to introducing new technology to their wealth management service, women would most like to see real-time analysis of their portfolio performance (44 per cent) and investment positions (42 per cent), investment recommendations tailored to their areas of interest (41 per cent) and alerts and notifications to help rebalance a portfolio quickly (40 per cent). 

Of least interest is scenario planning of their response to different hypothetical market events (30 per cent). On the other hand, 39 per cent believe that a tool that depicts their progress to their goals could have a very significant impact on their ability to engage with and manage their wealth.

8. They are increasingly going mobile

Desktop computers are still the most prevalent form of tech used by women, with 48 per cent using one for three hours or more a day, compared to 38 per cent using their smartphone for three hours or more a day. However over the next five years, women anticipate their use of mobile devices (laptops, tablets and smartphones especially) will increase – although they are less interested in adopting smartwatches.

9. And are geared up for immersive tech

Half of women (50 per cent) expect to increase their use of digital assistants such as Siri and Alexa, which is comparable to men (54 per cent). Women are even open to virtual reality, with 43 per cent expecting to increase their use of VR headsets over the next five years compared to 48 per cent of men. This could be of particular interest to wealth managers, given that a third of female clients say they are interested in a virtual space where they can interact with their wealth manager.

10. Female wealth management users welcome the next generation of technology

Across the board, female wealth management clients welcome new technology, with three-quarters believing that it can help their adviser be more efficient, lead to products that are more suitable for their wealth requirements and improve their understanding and confidence when it comes to their investments and managing risks.

This has to be good news for any wealth management firm seeking to innovate to advance their proposition for female clients. Just be sure that the value of any new technology is clear and convincing to this receptive but highly discerning cohort.

Caroline Burkhart is associate partner at wealth management think-tank Scorpio Partnership