UK market research company Forrester released a new report this week: Design Gender Inclusive Products For UK Women Investors. It highlights the key preferences and behaviours of women investors in the UK and provides actionable insights for investment firms to attract and retain women as customers.

A new report by Forrester reveals that fewer women invest than men even though investing is a route to wealth accumulation and financial wellbeing.

According to Forrester’s 2022 data, only 35 per cent of women with internet access in the UK are investors compared with 48 per cent of men with internet access. At Hargreaves Lansdown, 37 per cent of its ISA accounts are held by women, the firm continued. From their interviews, Forrester said that wealth management firms are almost exclusively thinking about men in their product, service design, and marketing communications, neglecting the potential of the female market. 

The report comes as wealth management firms try to step up their efforts to promote diversity and inclusion.

The firm believes that women are a large and growing customer base. To close the 13 percentage point gap in investment adoption, wealth management firms need to recognise where they are missing the mark with women and adjust their marketing approaches and offerings accordingly.

The report shows that women tend to be more risk-averse than men, leading to a lower willingness to take investment risks and own riskier investments such as individual stocks, cryptocurrencies, and commodities. This presents an opportunity for wealth management firms to tailor their offerings and capture a larger profit pool, Forrester said.

Thirty-nine per cent of women with internet access in the UK report also said that they know how to save for retirement, compared with 57 per cent of men. These women are more sceptical of the financial advice they do receive, with only 31 per cent of them feeling confident that they are receiving good financial advice.

Women also tend to rely on their own research and validation from trusted sources, such as friends, family, and professional review websites, when choosing investment firms. Building trust through online platforms and providing transparent information can significantly impact women's investment decisions, the firm continued.

Branch locations and face-to-face interactions hold less value for women. Digital channels offer convenience, unbiased information, and the ability to engage on their own terms, making them the preferred mode of interaction for women investors, Forrester said.