Targeting Women in Private Banking 2007

Table of Contents

• Overview
  • Catalyst
  • Summary
  • Methodology
• Executive Summary
  • Women in Private Banking
    • The private banking sector has historically catered to male clients; therefore the private wealth management arena has also traditionally been dominated by men. However, there are a growing number of reasons why banks are seeing the advantages of attracting women, both as clients and as employees;
    • Women are living longer than men, with life expectancy in the UK at its highest level ever;
    • Women are controlling a greater proportion of wealth; by 2025 women will hold 60% of UK wealth and by 2010 women will control $22 trillion in the USA;
    • Women are increasing their wealth around the world, particularly in regions such as Hong Kong and the Middle East;
    • Women are gaining wealth from several different sources, including inheritance and divorce; banks are also seeing a rise in female clients as wives take a bigger role in controlling household finances;
    • Corporate executives are a growing segment of the female wealth market, and female entrepreneurship is growing;
    • Banks are recognizing this trend and making attempts to attract and support female business.
    • Client Strategies
    • Banks are trying to attract more female clients;
    • Women are worth more than they were in 1998, and their wealth is growing;
    • Not all banks are making the effort, and there is a gap in the market which some private companies are taking advantage of;
    • Banks are launching services to try to attract female clients;
    • New female-focused businesses are appearing, such as Bramdiva and Independent Women;
    • The US is the clear leader for innovative ways to attract and serve wealthy women; the UK needs to catch up;
    • Banks are focusing on tactics rather than strategy.
  • Women as Private Bankers
    • Banks are employing active recruitment strategies;
    • Several banks are leading the field, including Barclays Wealth, Deutsche Bank, Merrill Lynch, and Citigroup;
    • The number of female bankers have risen in recent years;
    • Some believe that women have qualities which give them a competitive advantage in private banking;
    • The rise of female bankers is not just down to political correctness, and a shortage of skills in the financial services industry is leading to increased opportunities;
    • Affirmative action is not the way forward; private bankers should be hired for their talent not their gender.
• CHAPTER ONE WOMEN IN PRIVATE BANKING: WHY THE CURRENT FOCUS?
  • Introduction
  • Women are living longer than men
  • Women are controlling a greater proportion of wealth
  • Women are increasing their wealth around the world
  • Women are gaining wealth from several different sources
  • Banks are recognizing this trend
• CHAPTER TWO CLIENT STRATEGIES
  • Introduction
  • Key findings
  • Banks are trying to attract more female clients
  • New, female-focused businesses are entering the market
  • Some see the new services as offering marketing tricks instead of real service
  • Banks in the UK are focusing on tactics rather than strategy
  • The US is leading in innovations to attract wealthy women
• CHAPTER THREE WOMEN AS WEALTH MANAGERS
  • Introduction
  • Key findings
  • Banks are employing active recruitment strategies
  • Women are succeeding as private bankers
  • Some believe that women have qualities which give them a competitive advantage
  • The rise of female bankers is not just down to political correctness
  • Affirmative action is not the way forward
• APPENDIX
  • Methodology
  • Further reading
  • Ask the analyst
  • Datamonitor consulting
  • Disclaimer
• Table of figures
  • Figure 1: Life expectancy for women is increasing
  • Figure 2: Girls live longer than boys
  • Figure 3: Self employment in the UK by region, 2004/2005
• CHAPTER ONE WOMEN IN PRIVATE BANKING: WHY THE CURRENT FOCUS?
  • Introduction
  • Women are living longer than men
    • Life expectancy in the UK is at its highest level ever
  • Women are controlling a greater proportion of wealth
    • By 2025 women are predicted to hold 60% of UK wealth
    • Women will control $22 trillion in the USA by 2010
  • Women are increasing their wealth around the world
    • There are several other regions apart from the UK and USA in which women are controlling considerable proportions of wealth
  • Women are gaining wealth from several different sources
    • Inheritance is still the primary source
    • Divorce is a growing market
    • Wives are controlling more of the family money
    • Corporate executives are a growing segment of the female wealth market
      • There is still a pay gap, but successful women are seeing salaries rise
    • Female entrepreneurship is growing
  • Banks are recognizing this trend
    • Banks are making attempts to attract and support female business
• CHAPTER TWO CLIENT STRATEGIES
  • Introduction
  • Key findings
  • Banks are trying to attract more female clients
    • Not all banks are making the effort
      • Some private companies are arriving to take advantage of the market gap
    • Banks are launching female-friendly new services
      • Coutts Woman aims for style over content
      • Lloyds TSB: Diamonds and chocolate appeal to men as well as women!
  • New, female-focused businesses are entering the market
    • Bramdiva has generated high levels of publicity
    • Citibank Women & Co is designed to address the specific needs of women
    • Independent Women offers a comprehensive range of services
    • Frauenbank is the world' s first bank for women
    • TAIB is one of the oldest private banks in the Middle East
  • Some see the new services as offering marketing tricks instead of real service
    • Style over substance: are current UK offerings patronizing?
  • Banks in the UK are focusing on tactics rather than strategy
  • The US is leading in innovations to attract wealthy women
    • Women are taking matters into their own hands
• CHAPTER THREE WOMEN AS WEALTH MANAGERS
  • Introduction
  • Key findings
  • Banks are employing active recruitment strategies
    • Several banks are leading the field
      • Barclays Wealth leads in the UK
      • Deutsche Bank specializes in global networks
      • Merrill Lynch has a supportive global partnership for women
      • Citigroup Difference is a company-wide diversity support network
  • Women are succeeding as private bankers
    • The number of female bankers have risen significantly in recent years
      • What attracts women to private banking?
  • Some believe that women have qualities which give them a competitive advantage
    • Many banks believe hiring more women will enable them to serve women better
  • The rise of female bankers is not just down to political correctness
    • There is a general skills shortage in the financial services arena
  • Affirmative action is not the way forward
• APPENDIX
  • Methodology
  • Further reading
  • Ask the analyst
  • Datamonitor consulting
  • Disclaimer
  • List of Figures
    • Figure 1: Life expectancy for women is increasing
    • Figure 2: Girls live longer than boys
    • Figure 3: Self employment in the UK by region, 2004/2005