The need for financial advice is “still not cutting through to women” in the way it should, but digitalisation could be a game changer in helping women become more involved in shaping their financial futures, says Dynamic Planner.
The firm surveyed 4,000 people to look into how technology might better meet the needs of men and women when it comes to financial planning and help close the advice gap.
The findings showed men are more likely to seek financial advice than women, with 18% of men receiving advice compared to 11% of women.
More than half (53%) of men receive advice in person, versus 46% of women, while 41% of men receive advice over email compared to 32% of women.
One in three (31%) men opt for financial advice via mobile phone, while only 25% of women said the same. Additionally, just over a fifth (22%) of men receive advice via an app, compared to 18% of women.
More than two thirds (67%) of men said they would like to have access to an app to track their pensions, investments and personalised financial content, significantly above the 54% of women who said the same.
Dynamic Planner said for both men and women, the most important feature of an app would be receiving video and interactive content about other financial matters. Men would also like to receive secure documents and be able to add a digital signature, whereas women want to be able to access offers and rewards from trusted brands, the research showed.
Rowan Whittington, growth director, Tram at Dynamic Planner, said: “Technology has been transformational for financial planning, but the research shows that despite all of the advances, the need for financial advice is still not cutting through to women in the way that it should. What’s also clear, as with many things, is that men and women place different levels of importance on different factors and have preferences as to how they engage.”
Whittington said that despite incomes of women continuing to rise, along with average life expectancy, they continue to be underserved by both advisers and wider financial structures.
Whittington continued: “As clients, women offer great potential, so what is standing in the way of firms shifting the balance to having a more diversified client base? Technology has the power to help firms break down any barriers in a way we’ve not seen before. The ability to meet your adviser online means things are made so much more accessible for busy lives, and mobile app technology means that everyone can get involved in keeping on top of things at a time that suits them. Digitalisation of the financial planning process is the gamechanger that women need to become more involved in shaping their financial future.”
Ian McKenna, founder and director of FTRC, said: “For too long financial advice has been seen as too expensive for all but the wealthiest in society, and while there are now some amazing female led advice firms, we need to make sure that while technology gives us an enormous opportunity to transform the availability and affordability of advice, we do not fall back into the trap of building services primarily around what men want. The next generation of AdviceTech services must meet the needs of the whole population, not just half of it.”
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