Dutch women often feel that they are not understood by their financial advisor or that financial services do not meet their needs. For example, almost three quarters of the women with a tight budget think that banks cannot help them enough with getting their finances in order, while 40 percent of the men in a comparable situation believe that banks can. This is apparent from the study 'The importance of inclusivity in financial services', which ABN AMRO has conducted together with McKinsey and Better Future. It mapped out the obstacles that women experience in different phases of their lives when it comes to their finances. According to ABN AMRO, the results show that it is crucial to make financial services accessible to everyone. It is the first time that such a comprehensive study into inclusive banking has been conducted in the Netherlands.
Women worldwide feel under-served or dissatisfied with their financial services. In addition to being annoying, this is also a missed opportunity, because financial advice that better meets the needs of women can generate more than 611 billion euros in extra income worldwide. However, two in three women in the largest economies indicate that financial advisers do not understand or support them adequately with appropriate financial advice.
Dutch women experience similar barriers. ABN AMRO has conducted research into the differences between women and men by examining five focus groups, both quantitatively and qualitatively:women with limited funding, women with an above-average income or wealth, female entrepreneurs and young female professionals. This provides insight into which motivations they have in different phases of life and which (financial) barriers they encounter.
“Our research shows that many women feel insufficiently understood by their bank or financial advisor. It is therefore important that our services better meet the needs of women in different phases of their lives. This requires clearer and more accessible communication and products that meet the wishes of women. It also helps if advisors can understand the needs of women and are genuinely curious about their wishes," says Chantal Korteweg, director of Inclusive Banking at ABN AMRO. “We see that women in all walks of life, regardless of their income level, face similar barriers. A lack of personal advice is experienced as a lack by several groups of women.” For example, women with a tight budget experience a greater distance from their bank than men in a comparable situation. They also struggle more with putting money aside for later and more often say that they lack the knowledge or training to understand financial products. Only 27 percent expect their bank to be able to help organize their finances, save for the future and build up pension, while this applies to four in ten men from the same focus group. Wealthy women also feel misunderstood:two in three think that financial services do not meet their specific needs. The biggest stumbling block is a lack of financial products that protect the (future) wealth of their family. They also more often have a need for investment products with a longer investment horizon and are more interested than wealthy men in (sustainable) investments with a positive social impact.
Although the number of female entrepreneurs in the Netherlands is growing rapidly, they also encounter numerous obstacles in their way with their finances. For example, the lack of personal financial advice makes it more difficult for women to start a business. This applies to almost six out of ten women, while this applies to less than half of the men. Partly because of this, women seem less likely to start their own business – 9 percent versus 12.4 percent of men – and are three times less likely to continue their business for more than 3.5 years. The survey also shows that female entrepreneurs (69 percent) have more difficulty raising capital than men (59 percent). Furthermore, they often lack role models or a mentor to whom they can mirror themselves and they have a greater need for suitable network meetings. This applies to more than four in ten women compared to about a third of men.
“Realising equal opportunities within the banking sector is a relevant topic. This also applies to society as a whole," emphasizes Korteweg. Preliminary calculations show that just reducing the number of women on tight budgets to a comparable number of men in the same situation could bring society between 14 and 30 billion in additional income annually. Now that the differences are transparent, it is important that all players in the ecosystem – financial institutions, governments, civil society organizations and companies – work together to remove barriers to banking and financing. Based on our purpose – 'Banking for better, for generations to come' – it is essential for ABN AMRO to make our products and services inclusive and accessible to everyone. For example, women in all walks of life indicate that they lack sufficient financial knowledge and experience to understand often complex financial products. Banks can respond to this by supporting them with clear communication and tailor-made financial training. With more inclusive financial services in the Netherlands, we can increase the opportunities for women and a great economic potential is used. A win-win situation.”
