playing it safe: women, financial services and advertising

BritainThinks | Private and Confidential

britainthinks.com

Playing it Safe

November 2016

Women and investing

Key Takeaways

2BritainThinks | Private and Confidential

Key takeaways from this work


Key takeaways

1The financial role that women play is changing – yet their levels of investing remain lower

than men.

2Women feel less knowledgeable generally, and specifically lack confidence about investing.

Security is the by-word for good financial planning for many.

3 By contrast, men are more likely to place ‘making money’ as a priority.

4Women tend to see investing as ‘not for them’. Instead, it is thought to be the preserve of

‘older, wealthier men’.

5Advertising for investment products often reinforces this, with many ads focused on growth

potential and lacking a compelling female context (i.e. reassuring).

What did we do


Key takeaways

Expert Interviews Workshop

Nationally

Representative

Survey

• Online

• 2084 participants across

the UK

• Questions run between 13

and 15 May 2016

• With 12 female participants

at the forefront of women’s

changing relationship with

the financial services

industry

• 4 single parents, 4 women

who ran their own business

and 4 women who were the

main breadwinners in their

household

• Explored their views of how

the FS industry treats them

• Interviews conducted with 6

experts

• Mix of industry

representatives, financial

journalists, academics,

think tank experts

• Provided an overview of the

issues at play and informed

workshop design

The Context


Women are increasingly in control of household finances


The context

Research suggests that a

majority of women of all

ages will be in charge of every

household financial

decision by 2020.

1 in 3women admit that if they were

separated from their partner they

would need help to get up to speed

with their personal finances

But many women feel less confident when it comes to finances

Between 1998 and

2013, the number

of working mothers

who are the main

breadwinner rose

by

80%And now one in five women in the

UK are the main breadwinner

Fewer women than

men feel confident

making investment

decisions

53% 38%


The context

Our experts felt that the industry has not reflected the change in

women’s roles yet

Women’s role in society

is changing…

…but financial services

remains constant in its

approach

Women are increasingly

making decisions about

financial products…

…but industry is

dominated by older men

Products are unisex…

…but ways of talking and

visualising them often

aren’t

”…the rise of the professional,

independent, high net worth woman

has only really come about in the last 35

years, which compared to how long

financial services has been around is

a drop in the ocean”

Economist

“…the more you go into the bank, the

more detailed and complicated the

products get…the more older men are

in charge of those products”

Economist

“[FS Companies] are still talking to

women like they’re a little bit

irrelevant.”

Consumer Champion

How differently do women and men feel about financial services?




Maintaining financial security is important

• You are providing for family – and children above all else

• You can respond to emergencies quickly

55%

62%

Security

Men Women

When it comes to planning my finances,

the most important things to me are:

(n:2084)

” You have responsibilities. The

key thing for me was what if

something happens

tomorrow?”

” When you have children, it’s

vital to plan your money – it’s

their future at stake”

” I worry about money and our

finances, our future, I take that

stress on”

“If you don’t there are

implications, charges, you lose

money, you’ve got to be savvy

about it”

The need to feel safe defines women’s approach to financial

planning to a much greater extent than men’s



Which the women in our session rejected and

critisised as an approach

• Framing their approach as much more sensible

“There’s more of an understanding

with women, you have to wait for

things patiently, I always save

through the year. My husband just

says ‘let’s get a loan’”

“I was taught very early on ‘look

after the pennies and the

pounds will look after

themselves’”

”Men are more inclined to short-

term gain over long term profit

and sensibility”

“They [men] don’t think of the

risks”

When it comes to planning my finances, the most

important things to me are:(n:2084)

24% 24% 24%

18%

16%15%

Growth Returns Profit

Men Women

While men are significantly more likely to choose elements that relate

to ‘making money’ as important in their financial planning



And when women think about financial services, confusion

and worry is top of mind in an alien world

“I’d like things to be simpler, if things

weren’t allowed to be so variable…

jumping through hoops, that’s what it

feels like”

“Unwelcoming, patronising, full of

jargon”

“Not very accessible to the everyday

person, not just women, the everyday

worker”



Their response is to develop a set of techniques to help them to

take back control

Embedding money

management

practices in their

day to day lives

Controlling as much

as they can in their

own household

They take great

pride in their role

and contrast it with

their friends’ or

partner’s approach



Their response is to develop a set of techniques to help them take

back control

Embedding money

management

practices in their day

to day lives

“It consumes me, it’s part of

me, keeping up my own

finances is something I

think of multiple times a

day”

“Because I use my banking

apps, it’s essential. I’m

literally standing on the

school run making

payments to people”

“I manage my money in my

sleep. I wake up early, 2 in

the morning, the first thing I

do, pick up my mobile, make

sure the money’s there”

Controlling as much

as they can in their

own household

“I’ve always managed my

money…we’ve got our joint

account, we’ve got our

separate accounts…I’m

just better at it”

“The way I manage finances,

I make sure all the bills are

paid, the savings are dealt

with and have a little bit

extra to have a treat.”

“Because I know exactly

what’s coming in and going

out, I manage everything. He

doesn’t like to admit it, but

it works”

Taking great pride in

their role and

contrasting it with

other people

“Women have upped their

game. I still do more with

the kids and I’m the

breadwinner, and I do more

round the house and I deal

with the money”

“It’s being really stringent

that money is in the right

place, being disciplined”

“My friends and I are quite

competitive about our

finances, being savvy”

How do women think about investing (in a world where they are striving for control?)




Women generally feel less confident about investing than men do –

seeing it as an unnecessary gamble

Investing is…

• Risky, a gamble

• Short term, quick wins

• For ‘spare’ cash

• Full of confusing language – tracker funds, percentages, FTSE?

” [Investing] would be too risky

for me”

“I suppose we are more risk

averse”

-8%

13%

NET: Agreement

NET: Agree

I think I am less knowledgeable than other people when it

comes to investing my money (n:2084)

”When you look at trading stocks etc, it’s a male orientated industry. So

when it comes to investing, men know a bit more than the average women”



Not one of the women in our

workshop of highly financially

engaged and confident women

knew what a dividend was

“What is a dividend?!! We’re

meant to be financial queens but I

don’t know”



Instead they count on ‘safer’ options: long term, tangible, easy to

understand, sensible…

PROPERTY

Their own

Buy to Let

SAVINGS

Cash ISAs

Premium Bonds

Instant Access

PENSIONS

Workplace

Personal

• Sensible to have one – even if

you don’t trust them

• Understood and simple

• Secure – can’t lose

• Accessible and can be

repurposed in an emergency

• Tangible asset

• Feels long term - can pass on

to children

• Have experienced inheriting

property

• It’s the ‘done’ thing

“I have no faith in pensions at all,

the time where you used to pay into

a pension scheme and it’s secure

and guaranteed is gone”

“Save as much tax free as you can,

take it out, move it to the next

place, you got to be savvy about it”

“I’ve invested in property, but I

didn’t look at it as an investment. It

was something for the kid’s future”



In fact investing is for someone else

“Men buzz off that, that’s the reason it’s

always been a male dominated

industry, men are egotistical, it’s all

about the win”

“Most of my friends are in banking,

most of them are male, when it comes

to finances, it’s down to them”

“I associate investment with wealthy

people so it’s hard for me to relate

to. Investment is out of my reach”

Communications about investing often reinforce the sense that it’s

risky and for someone else with both language and imagery



I assume investing is risky and a gamble…

• Investment typically described by:

• Returns

• Profit

• Percentages / anticipated growth

• Risk warnings

• And describe it as a game

I assume investing is for older, wealthier

men…

• Investing is typically illustrated with:

• Men

• Lots of technology

• In ‘rich’ settings

• Posh, historic settings

• Traditional corporate



An example in practice

20

“Looks like you would have to have

a substantial amount to invest”

“Looks like it’s aimed at older men”

“I don’t understand…why hunters

so literally?”

Snap reaction from the room…



An example in practice

“This is targeted to everyone”

“This could be me and my

husband, although we’d be on the

couch at my house”

“Looks quite simple, easy to

understand”

Snap reaction from the room…

How can the industry better engage with women?



How can industry better engage with women?

Five rules for engaging with women

1

2

3

4

5

Celebrate the role that women take great pride in – reflect the role they have taken on and

the success of their approach to money management

Respond to women’s need for security with a tangible account of what happens to their

money

Make it clear that the outcome is more than just profit: This is preparing for their family’s

future

Recognise women’s need to have control: choose words carefully, rejecting vocabulary that

celebrates the risk

Become that trusted advisor


How can industry better engage with women?

The Parent Trap Tracker Fund – ‘Free your future, invest for your

children’

Key Features

• Low risk

• Guaranteed return

• Flexible for getting cash out in an

emergency

• A financial mentor to help you be

sure you are getting the most for

your money

A product designed for:

• Parents

• Families

“Are you one of those parents that stays

up late at night worrying about your

children’s future…?”

“…opportunity to invest that allows you low

risk, a guaranteed return, a mentor and a

safety blanket for your children”

“It’s designed for families who

want to save and invest in their

children’s university fees or a

deposit for their future property”

How did we use this?




What was the response?

Fit with a campaign

focus

Broader financial

education

Confidence in

decisions…?

• Not just women who are

confused

• Are those who are confident

making decisions, making the

right ones?

• Personal finance and investing

• Careers in finance

• Female fund managers

• Female investors

Questions…


playing it safe: women, financial services and advertising

Presentations & Public Speaking