Finance firms are leaving more than $700 billion of annual revenue on the table, according to a study – from underserving women in a male-dominated financial service sector.
Banks, insurers, and other financial providers are missing out on a huge portion of revenue by not adequately tapping women as clients, according to a report by Oliver Wyman. The New York-based consultants said the lack of product differentiation and attention given to women is leading to lost opportunities.
«Women are arguably the single largest under-served group of customers in financial services,» said Jessica Clempner, author of the Wyman report. «Firms are leaving money on the table by not listening to and understanding their women customers.»
Insurance Windfall
Within insurance, if the rate of sales to men is replicated with women, the industry could generate $500 million in new premiums, the study calculates. In wealth and asset management, $25 billion of fees could be generated, especially given women’s relatively high concentration in cash rather than stocks and bonds.
Unsurprisingly, senior management at financial companies is dominated by males with women making up just 20 percent of top executives globally, compared to 16 percent in 2016. Structural hurdles including the «mid-career gap that holds many women back» continue to hamper efforts to better gender diversity, the study said.
