Surveys
Ugly Industry Jargon, Time Limits Holding Back Female Investors

HSBC UK has released a new report and has found that female investors are being held back by three barriers. After these findings it has launched a set of initiatives in a bid to encourage women as investors.
Women are being held back from investing by barriers such as the
industry's use of off-putting jargon, their lack of time to
consider financial matters and a conservative attitude to risk,
according to research from HSBC UK.
The report, “Talking Everyone’s Language”, was published
by HSBC UK after it conducted a YouGov survey of 2,000 men and
women, as well as interview its wealth clients and relationship
managers.
More than a third (35 per cent) of women said they found
financial used in the industry to be a problem for them, compared
with a quarter (26 per cent) of men taking the same view. The
interviews revealed that although women know as much about
investing as their male counterparts, they tend to have lower
levels of confidence about their knowledge – meaning that they
are more likely to be put off by terms they don't
understand.
Around 17 per cent of women spend more than a month researching
investment options opposed to 13 per cent of men, and HSBC says
women find they do not have the time to plan their financial
affairs. HSBC UK found there is a lack of peer motivation. If
friends and family do not talk about investment, women are more
likely to feel that it is not for them, or not for their current
stage and lifestyle.
Also, 72 per cent of women surveyed say they do not like to take
investment risks compared with 54 per cent of men. For example,
HSBC said only 19 per cent of women have an equities ISA compared
with 32 per cent of men.
The bank's survey is an attempt to get to grips with how to serve
female clients better, an important market as women increasingly
account for a higher share of wealth holders in countries such as
the UK.
Initiatives
In response to these findings HSBC UK is introducing a number of
commitments in 2018 aimed at removing barriers that may prevent
women from choosing to take up investment advice.
These include:
Trialling split, flexible appointments:
- Industry standard practice typically sees one off initial
appointments with advisors, with clients expected to make
investment decisions within this timeframe.
- HSBC UK will give customers time to consider the information
received in their first appointment and then have a follow up
appointment to ask for clarification or follow-up
questions.
Colleague coaching:
- With both the quantitative and qualitative research indicating
that the use of perceived complex financial terminology can deter
women from investing, front line colleagues will receive coaching
on the report findings and its implications to help avoid
unnecessary jargon that can put off some customers.
Holding investment events specifically designed for female
customers:
- HSBC UK will host investment events for female customers,
aiming to provide existing and potential customers with an
understanding of the investment landscape and encourage peer
motivation.
“My own experience, and that of HSBC UK’s relationship managers,
suggests that while gender does not define the way we manage our
money, there are subtle but notable factors that may put some
women off investing,” said Michelle Andrews, head of Premier and
Wealth Insights at HSBC. “This is supported by our research
findings and is why we’re changing our services to better address
the investment needs of our female customers. For us this is just
a starting point and we recognise that HSBC UK and the wider
sector need to do more to ensure our services reflect the needs
of all potential customers, to help them to maximise their
financial potential,” Andrews said.
The survey, carried out in October, asked men and women across
the UK with more than £10,000 in their savings accounts about
their savings and investment habits and about their attitude to
risk.
The banking group also conducted a total of 24 two-hour in-depth
interviews with HSBC UK clients. Of these, 15 were amongst
women and to ensure we understood the differences between
genders, nine were amongst men. Some 10 interviews were HSBC UK
wealth customers, and 14 held their wealth elsewhere. HSBC also
undertook 13 interviews with HSBC UK relationship managers and
other senior members of the HSBC Wealth and Premier teams
exploring the investment approaches of their male and female
clients.