Advising Women
'Women' constitute almost half of the total population of our country, but this segment is vastly overlooked. Women are not acknowledged at home when it comes to discussing finances in the house, and outside the house at large. Most financial advertisements are male centric, the man needs an insurance policy to take care of his children, the man needs a mutual fund to sponsor his daughter's wedding, etc. Even though, modern women is educated, earning and independent, yet the 'kitchen only' image of hers is intact when it comes to finances. What is often ignored is women have money, they have investment goals and they outlive men, so the investment horizon is more than men, especially, when it comes to retirement planning. Some advisors try to run away from women as it is perceived to be a complicated segment. But you are losing a huge opportunity and a big chunk of business here.
Like you segment your clients on the basis of income, profession, age, background, etc., and devise a different strategy for each client. Likewise, men & women are two different segments and there should be separate strategies for handling them. The requirements & expectations of men & women are different, thus they should be handled differently.
There are key certain pointers about women pertaining to their nature and characteristics, to be taken into consideration, which will help you serve the ladies better:
Low income and long life: Women in general have lower incomes than males, but they generally outlive their spouses. Hence, they need to save and invest more to fill in the gap. So, a financial advisor must realize this unique feature and advise her as per her goal and affordablity.
Women are more cautious: Women are more careful when it comes to investing their hard earned money. This is because of lack of exposure to financial products, or because they are more attached to their savings, or because they are generally earning lesser than their male counterparts. So, when you pitch your products to a woman, she would take more time, she would explore other options because she wants the best deal, before making a decision. Be patient, do not pester them, give them time and space to think and get back.
Women are emotional: Men go by logic, facts and figures, while women believe in building relationships. Unlike men, women associate their goals with emotions. So, focus on winning their trust, women are more social, so be a good speaker as well as a good listener. When you are advising a woman, her goals and requirements should be at the center. Make sure that she feels comfortable and secure, and does not doubt your intentions with respect to her money. Once you are able to develop a comfortable and healthy relationship with a woman, she develops an emotional bond with you and is your client for a lifetime.
Social: Women are social creatures, and when they trust you and the services you offer, they would not mind talking about it and hence bringing in more referrals for you. So, if you want to have the huge social circle of the ladies as your clients, you must handle them with care.
Life events: There are some major life events, or points which has significant positive and negative impacts on a woman, like getting married, having a baby, death of spouse, divorce, etc. Women would need a financial advisor at such times to help them financially. When a woman gets married, she realizes the responsibilities of a family lying ahead, and wish to contribute. When she gives birth to a child, she starts thinking of her child's future. She wants to invest for these goals, so you must guide her. She might lose her spouse, by the latter's demise or divorce, and at such points she would need money to survive, and she needs to save & invest for her future. So, you must help her if she has to redeem her earlier investments and help her devise a sound financial plan for her future & make her financially independent.
Working Women: There are increasing number of working women, but they generally have lesser financial obligations than men, so there are a lot of unnecessary expenses here as well as money in their saving accounts. Even homemakers have their savings in a 'Ghapla Account', which they keep for emergencies and which is not known to her family. So, there is a lot of idle money lying with women. A financial advisor must view this as an opportunity, and advise women and direct their savings and unimportant expenses to concrete investment assets.
A financial advisor must keep the above things in mind while dealing with a female client. Your advisory should be customised as per the unique needs & characteristics of women. You must help them discharge the responsibilities as well as plan for their goals.
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