As the author of this article states, wealth firms will need to adapt to the societal shift to remain competitive. And that means serving women clients more effectively and retaining those they already have.

The importance of wealthy women as a client base is not a new subject for this publication – see this report from last year for the Middle East region. Nevertheless, it is important to reiterate the point and explore details about strategy in this area. This news service is pleased to share these views from Yazmin Boden, partner at GSB Wealth, an organisation operating in the Middle East and the UK. (See an interview article here.)

The editors invite responses and comments about this and other guest material we carry; the usual editorial disclaimers apply. Email tom.burroughes@wealthbriefing.com

The number of ultra-wealthy women is steadily rising, and this is not only a win for gender equality but also a driving force for positive social impact. 

Female multi-millionaires are increasingly shaping the world through their wealth and influence, focusing on causes that matter to them and creating lasting change in their communities.

In 2023, there were 43,457 female ultra-high net worth individuals and 369 female billionaires, according to Julius Baer.

Although women represent only 13.3 per cent of the global billionaire pool and 11 per cent of the UHNW population (those with wealth of $30 million or more), the growth in their numbers since 2010 is remarkable. Back then, women made up just 9 per cent of billionaires and 6.5 per cent of UHNW individuals.

The average UHNW woman is often a 60-something widow, heiress, or stay-at-home wife, predominantly from the US, mainland China, or developed Europe. Their wealth usually originates from traditional sectors such as food and beverage (F&B), retail, and manufacturing. They tend to have a strong interest in social causes and philanthropy.

How wealthy female clients manage their wealth
When it comes to managing wealth, both UHNW men and women exhibit similarities, particularly in holding a high proportion of liquid assets. 

However, women need to manage their wealth more actively due to their longer life expectancy and generally having less experience in making significant financial decisions. This is especially true for female billionaires, who statistically fall off the Forbes billionaire list more quickly than their male counterparts.

Interestingly, the UK stands out for its culture of female entrepreneurs. It is the only country where self-made female billionaires outnumber those with inherited wealth in the past decade. This trend underscores the importance of female entrepreneurship and its growing impact on the global economy.

For many UHNW women, wealth goes beyond financial management and capital preservation, important though that is. 

A survey by The WealthiHer Network in 2022 revealed that 51 per cent of female respondents equated wealth and success with a thriving career, 46 per cent with making a difference in the community, and 29 per cent with helping their children achieve their ambitions.

Obviously, it’s important not to generalise, but statistics also show that women are less likely to take a proactive approach to their wealth management.

That’s not to say that women are not good savers, women typically save more on average than their male counterparts. However, there seems to be a lack of overall progress in proactively managing said savings, in light of their lifetime plan.

Whether this gender-based difference sits with wealth advice firms, or is more rooted in society and education, it’s hard to say – likely both. Nevertheless, wealth advice firms need to ensure that their outreach actives are engaging the increasingly wealthy female population. 

A big part of this will be in how wealth advice firms consider women's communication styles, and the way in which this sector accesses and consumes information.

Sources of wealth for UHNW women
While it is true that a significant proportion of UHNW women’s wealth comes from inheritance, there has been a notable increase in self-made female billionaires, according to the aforementioned Julius Baer report.

While self-made women represent 45.2 per cent of the female UHNW group, compared with 75.7 per cent for men, their median wealth is generally lower. On average, self-made UHNW women possess $35.7 million in assets, compared with $67.3 million for those who inherited their wealth. However, self-made billionaires continue to prove that entrepreneurship can be a powerful engine for wealth creation.

In contrast, many female UHNWIs combine inherited wealth with their own business achievements. The 2024 Forbes list also welcomed 46 new women, with some earning their spot due to stock market gains, while others inherited their wealth.

Wealth firms will need to adapt to the societal shift to remain competitive. Failure to do so will result in reduced financials and, at worst, obsolescence over time. It is the responsibility of the wealth and advice industry to ensure that individuals from all walks of life have access to the money management information they need.

The industry needs to ensure that successful or wealthy women have the support they require to maintain and maximise their wealth over time.

Financial education and UHNW women
Today, trusts have become a crucial tool for wealth preservation among UHNW women as they help widows or divorcees who may lack asset management skills by allowing financial professionals appointed as trustees to manage these assets in the best interests of the beneficiaries. 

But in the long term, wealth advice firms need to play a crucial role in providing specialised financial education programmes and workshops tailored to the unique needs and challenges of wealthy women. Targeted education and resources are needed to enable them to make informed financial decisions.

Programmes can cover topics such as investment strategies, retirement planning, estate planning, and risk management.

By fostering a supportive and inclusive environment, wealth advice firms can help wealthy women build confidence in managing their wealth and make sound financial decisions. Female clients that have come into wealth because of inheritance or divorce may prefer a more different approach, certainly in the earlier years.

It is vital that advisors recognise the type of individual in front of them, and adapt their communication and advice style accordingly, to ensure that each and every client can get across their specific needs and concerns, in order to make a fully-informed investment decision.

A big part of this will be promoting further diversity and inclusion within the financial industry. Product providers need to ensure that the specific needs and perspectives of wealthy women are considered in the development of financial products and services.

Conclusion
The growing number of ultra-wealthy women is transforming the landscape of wealth and philanthropy. 

Their increasing involvement in asset management and social causes is not only bridging the gender wealth gap but also driving positive change in communities worldwide.