A Growth Market
The female economy is large and growing.
Women’s consumer power is significant.
Women make or influence a majority of purchasing decisions, including where to bank and where to invest.
- Women’s consumer spending is poised to hit $US18 trillionSource: EY this year.
- Women make up to 80% Source: Deloitte of buying decisions worldwide.
- By 2020, women could control over US$72 trillionSource: Boston Consulting Group globally.
In Control
According to BCG, women control more than $39.6 trillion in consumer spending worldwide — 2x the GDP of the United States.
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Women are increasingly controlling finances.
Women around the world are gaining control over financial decisions as their accumulation of wealth continues to rise.
- Women’s wealth growth is outpacing that of the overall market at 8.1%Source: HBR, compared to 5.8%Source: HBR for men.
- Women hold an estimated 36%Source: Boston Consulting Group of wealth globally, and 42%Source: Boston Consulting Group of women derive their wealth from their own salaries.
- Women will inherit US$28.7 trillionSource: Boston College in intergenerational wealth over the next 40 years.
Earnings on
the RiseWomen’s wealth growth
is outpacing that of the overall global market by 1.4 percentage points, according to BCG.
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Getting Down to Business
Women are starting and growing businesses at significant rates.
- 25% to 33%Source: Ernst & Young of private businesses are owned or operated by women.
- There are approximately 163 million womenSource: Global Entrepreneurship Monitor across 74 economies who are starting or running a new business.
- There are 111 million womenSource: Global Entrepreneurship Monitor around the world running established businesses.
Opportunities
on TapWomen’s entrepreneurship rates have been rising for years. According to GEM, in the last 2 years alone they increased 10%.
Growth Drivers
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Education
Women’s wealth will continue to rise as the female population worldwide continues to become more educated and enter high-paying careers.
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Employment
According to a Boston Consulting Group study, there was a 200% increase in the number of women in the global workforce between 1980 and 2008.
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Lifespan
The World Health Organization has found that women live about 5 years longer, on average, than men do. On the scale of the global population, that translates to more than 18 trillion additional years of wealth creation.
Untapped Potential
The financial services industry has only just begun to target the female economy.Women are Under-served
Most women cannot access high-quality financial services.73%
The vast majority of women globally – 73% – reported being unsatisfied with their financial services providers, according to Boston Consulting Group findings.
- An average of 71%Source: Boston Consulting Group of women investment, insurance and credit card clients said they were dissatisfied with the service they received from those providers.
- 70%Source: Boston Consulting Group of women believe that wealth managers should tailor their approach to women.
- More than 80%Source: Deloitte of women believe investment marketers do not understand their needs, and 30%Source: Boston Consulting Group of women say they rely on friends and family for investment advice.
Women are Un-served
And some cannot access financial services at all.15%
Women are 15% less likely to have a bank account at a formal financial institution than men are, according to the WorldBank's Global Findex database.
- There is a US$1.7 trillionSource: WorldBank credit gap for women-owned micro, small and medium enterprises globally.
- 68%Source: IFC of women-owned SMEs with credit needs are un-served or under-served.
- Women are 20%Source: WorldBank less likely than men to have borrowed formally from a financial institution.
Business Opportunity
Providing women with financial services is profitable for financial services providers.
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Women are great savers.
Women save their money at a greater rate than men do, providing banks with a reliable source of liquidity.
- Women across all regions of the UK are better savers than men, keeping approximately 41%Source: Halifax UK of their annual wages in savings, compared to just 23%Source: Halifax UK for men.
- Women are 16%Source: WorldBank more likely than men to save for future expenses.
- Although women are 20%Source: WorldBank less likely to have borrowed from a financial institution, they are only 14%Source: WorldBank less likely to have a savings account.
On the Upswing
3x
According to Chilean government data, the number of savings accounts owned by women has grown at more than 3x the rate of men’s over the past decade.
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Women are prudent borrowers.
Women tend to be more risk aware than men, making them more likely to only borrow what they can repay.
- In 2015, GBA members’ non-performing small business loans were
27% higherSource: GBA internal calculations for men than for women. - Small and medium enterprise loans to women tend to be repaid at the same rateSource: International Finance Corporation as those to men.
More Profitable
15%
Data from GBA member BLC Bank shows that the average profit margin for SME loans to women is 15% higher than that of loans to men.
- In 2015, GBA members’ non-performing small business loans were
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Women are loyal customers.
Not only do women stick with an institution that treats them well, they make a point of recommending it to others.
- Women value personal relationships highly and are more loyal than men to individual service providersSource: American Marketing Association, such as their customer relationship manager at a financial institution.
- Net Promoter Scores are consistently higherSource: Westpac for women than men across all bank segments.
- Research has found that a woman satisfied with her banking experience tells 9 other peopleSource: Westpac about the bank.
Treat Them Well
4x
Research from marketing expert Marti Barletta suggests that women are 4x more likely than men to tell others about a negative service experience.
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Women purchase more products.
When they are satisfied with a financial institution, women buy more products per customer than men do.
- On average, women small-business owners are likely to hold more than
4 products per customerSource: GBA internal calculations, compared to 3.3 for male small-business customers. - 66%Source: TD Bank of US women say they consider their debit card “essential.” Only 53%Source: TD Bank of men reported the same.
A Major Force
89%
According to research from the Marketing 2 Women Conference, women have either full or partial ownership of 89% of bank accounts in the US.
- On average, women small-business owners are likely to hold more than
The Results back it up
60%
The revenue from one major GBA member bank’s Women’s Market program makes up approximately 60% of its total retail and business banking revenues.
34%
34% of private sector leaders report increased profits as a result of their efforts to empower women in emerging markets.
2.9%
The non-performing loan rate for GBA banks’ women small-business customers is only 2.9% — 43% lower than the rate for men.
15%
Research from GBA members has shown women have a lower product churn rate than men, at 15% vs. 21%.
What the Experts Say
“Women are 50 percent of the population, so if you say there’s no business case,
you’re clearly getting your sums wrong.”
Andrew McCartney
Senior Banking Specialist, IFC“We were surprised at how big a market this is for financial institutions.”
Pearl Esua-Mensah
Deputy Managing Director, UT Bank Ghana“Women make the vast majority of consumer purchase decisions,
and more and more women are growing businesses
that are very successful.”
K. Shelly Porges
Serial Entrepreneur, Former US State Department Director“We are absolutely convinced, as a bank, that
there is a very good business case for serving the Women’s Market.”
Raoul Nehme
General Manager, BLC Bank“I see becoming the Bank of Choice for Women as a long-term strategy
integral to our core business, not just an add-on.”
