BOSTON, MA, Jul 29 (MARKET WIRE) —
A majority of women think that wealth managers could do a better job of
serving them, and nearly a quarter of them say that there is a
“significant need for improvement,” according to a new global study by
The Boston Consulting Group.

The findings — released today in a White Paper titled “Leveling the
Playing Field: Upgrading the Wealth Management Experience for Women” –
are based on a survey of 500 women as well as more than 70 interviews
with private-banking specialists and wealthy women around the world.

The fact that women, as a group, are overlooked or undervalued belies
their significance as wealth management clients. According to the study:

– Women controlled an estimated 27 percent, or about $20 trillion, of
the world’s wealth in 2009(1)
– The percentages were highest in North America (33 percent), Australia
and New Zealand (31 percent), and Asia (29 percent, ex Japan), and
much lower in Latin America (18 percent), Japan (14 percent), and
Africa (11 percent)
– In Europe, the percentage was higher in Western Europe (26 percent)
than in Russia (21 percent) and Eastern Europe (19 percent, ex Russia)

While the share of wealth controlled by women has changed only
gradually over time, the amount of women-controlled wealth has been on a
rollercoaster ride since the start of the financial crisis, mirroring the
overall movement in global assets under management (AuM). After falling
sharply in 2008, it soared by 16 percent in 2009, to $20.2 trillion. It
grew by nearly 30 percent in Asia (ex Japan) and by 24 percent in
Australia and New Zealand. In other regions, it increased by anywhere
from 13 to 18 percent, except in Japan, where it grew by only 2 percent.

BCG projects that the amount of wealth controlled by women will grow at
an average annual rate of 8 percent from year-end 2009 through 2014,
slightly above the 7 percent rate from year-end 2004 through 2009.
Emerging markets are expected to lead the growth over the next several
years.

An Uneven Playing Field

According to the survey, conducted in early 2010, 55 percent of
respondents said that wealth managers could do a better job of meeting
the advisory needs of women; 24 percent said that private banks could
significantly improve how they serve women.

“The dissatisfaction stems from the unshakable perception that men get
more attention, better advice, and sometimes even better terms and
deals,” said Peter Damisch, a BCG partner and a coauthor of the study.
“We heard this sense of subordination time and again in our interviews.”

The problems that cause women to feel like second-class clients are
deep-seated. They stem from experiences in the advisory process as well
as the communication style of private banks and relationship managers
(RMs).

– Many women said that their RMs assume that they have a low risk
tolerance and thus provide only a narrow range of investment solutions
– Some said that they were given “dumbed down” versions of the standard
offering
– Several said that their advisors do not take them seriously, which
made for off-putting and sometimes humiliating interactions

The problems are compounded by the superficial strategies that some
wealth managers use to target women. “Some of the most common approaches
revolve around products, pitches, or promotions that can easily come
across as patronizing or contrived,” said Monish Kumar, a BCG senior
partner and a coauthor of the study. “They can alienate the very people
they’re meant to attract.”

Wealth managers need to understand that there are material differences
between men and women clients. Women, for example, often seek holistic
advice to fulfill long-term goals. Most want their banking relationships
grounded in empathy and personalized advice, while men tend to view their
banking relationships through a business-oriented lens.

“These generalizations should not be taken as holy writ,” cautioned Anna
Zakrzewski, a BCG principal and a coauthor of the study, “but they do
shed some light on why so many private banks — despite targeting other
groups of clients, such as doctors or lawyers — still have a service gap
between male and female clients.

“For example, many women feel that their advisors focus too much on
short-term results and disregard their long-term goals, which often
revolve around major milestones in a woman’s life, such as the birth of a
child. This is in part a function of incentive systems and company
cultures that are focused on near-term performance, but it is also a
shortcut and a symptom of superficial advisor-client relationships.”

Upgrading the Client Experience for Women

Wealth managers can attract new clients and reinforce relationships by
fine-tuning, rather than reinventing, their approach. “Most banks will
find that the problems are less about what they provide for women, in
terms of products, and more about how they deliver their service,” Kumar
said.

Wealth managers can put their RMs in a better position to initiate or
strengthen relationships simply by calling attention to areas where women
generally feel undervalued or overlooked. More ambitious wealth managers
can develop robust training programs and incentive systems to ensure that
they are serving women effectively.

Most important, wealth managers should recognize that the necessary
changes are likely to be subtle rather than sweeping. “As critical as it
is for wealth managers to improve how they serve women, it is equally
important that they understand the cost of artless overtures,” Damisch
noted. “Overreacting to the problem with graceless ‘solutions’ will do
more harm than good.”

To receive a copy of the paper or arrange an interview with one of the
authors, please contact Eric Gregoire at +1 617 850 3783 or
gregoire.eric@bcg.com.

(1) Figures are based on wealth owned by clients with at least $250,000
in investable assets, which include cash deposits, money market funds,
listed securities held directly or indirectly through management
investments, and onshore and offshore assets.

About The Boston Consulting Group

The Boston Consulting Group (BCG) is a global management consulting firm
and the world’s leading advisor on business strategy. We partner with
clients in all sectors and regions to identify their highest-value
opportunities, address their most critical challenges, and transform
their businesses. Our customized approach combines deep insight into the
dynamics of companies and markets with close collaboration at all levels
of the client organization. This ensures that our clients achieve
sustainable competitive advantage, build more capable organizations, and
secure lasting results. Founded in 1963, BCG is a private company with 69
offices in 40 countries. For more information, please visit www.bcg.com.

The Boston Consulting Group
Eric Gregoire
Global Media Relations Manager

Tel +1 617 850 3783
Fax +1 617 850 3701
gregoire.eric@bcg.com

Copyright 2010, Market Wire, All rights reserved.