How are women involved in their family’s finances? How confident do they feel about their financial know-how? What tools and services do they want their banks to provide to help them manage their money?
These are the kinds of questions financial institutions need to be examining to optimize the customer experience for their female customers. Married or single, mothers or child-free, college-age to retired, women are more empowered when it comes to money than they ever have been.
Here are some interesting findings on the preferences and attitudes of women banking customers (UPDATED February 2017):
Women tend to think of themselves as less capable or knowledgeable when it comes to finances than men do. In one study that used a scale of 1-7 to measure overall financial confidence, men rated themselves at an average of 6.20, while women came in at only 5.86. The numbers continue to drop among women under 50 (5.61) or when specifically addressing the area of investing (4.75).
56% of women said they turn to a financial advisor as one of their primary resources for guidance and information. The same percentage of men said they rely on their own prior experience and knowledge. Men are also more likely than women to reference financial books, magazines and websites.
That said, women aren’t likely to seek financial advice out of the blue. A strong personal relationship opens the doors for women to come in and get into the nitty-gritty with an advisor. Once that foundation of trust is established, women will tell up to 52 people about a good experience they had with their bank, and even more if they had a bad experience. They are also more likely to listen to and act on recommendations, or dismissals, from others.
Millennial women are more focused on paying off their debts than their male counterparts are. This sense of caution and sensibility is also reflected in their attitudes toward their financial future — 59% feel positive about the future, compared to 72% of men – and saving vs. spending. 54% of Millennial women said they avoid overspending, while only 40% of men said the same. Women in general carry less debt, use less credit, and are less likely to be late on their mortgage payments than men.
When it comes to traditional vs. digital ways of doing business, women place more importance on the branch than men do, especially when shopping around for a new bank. Women over 50 are particularly concerned about the availability and proximity of branch locations when choosing a bank.
Women are a little slower than men to take up new tech tools like mobile apps and voice recognition. They won’t trust these services until they have evidence that it’s worth taking the leap into something new. That said, remember how they rely on word-of-mouth – once they hear good things about your digital experience, they’re open to coming aboard. Women are especially interested in tools to help them manage their budget. Even if women weren’t using the services directly themselves (maybe through a spouse or someone else in their household instead), they still expect banks to have them.
Key Takeaways for Banks
- Women prefer a human touch, someone to walk them through the complexities of managing their money. Your advisory staff should be visible and available to your customers. Make it easy to contact these experts directly to ask quick questions or set up appointments – no one likes being given the run-around or playing voicemail tag.
- While men are generally content making transactions and purchase decisions directly with their bank, women want a relationship to create a foundation of trust before they’ll take your advice or sign on for additional products and services. Building the customer experience around this relationship makes them feel respected, valued, and welcome.
- Convenience can come digitally, but not necessarily. It also means convenient access to branches and a pleasant in-store experience while at the branch. It also means the availability of tools, including online and mobile, that help women manage the day-to-day flow of their income and expenses, or that connect them quickly and painlessly to personal help when they need it.
- FinTech could prove a significant draw. FinTech providers generally lead with the convenience and utility of their solutions. This could draw women customers, particularly younger women, away from traditional banks who aren’t innovating fast enough in the tools-on-the-go space.
- Women are conscious of financial responsibility, like reducing debt and paying bills on time. So what if their bank started incentivizing and rewarding their financial sense? Little gestures of congratulations, even for something as small as saving a little extra this month, could go a long way in strengthening the relationship between banks and their women customers.
As with all things, these preferences and priorities will vary somewhat from region to region, bank to bank, maybe even branch to branch. Use Voice of the Customer data to track, illuminate, and strategize around the customer experience of your women customers and earn their loyalty.
To learn more about Voice of the Customer solutions, contact CSP.
SOURCES
Scale of financial confidence
Reliance on financial advisor
Preference for strong relationship of trust
Women’s word-of-mouth
Millennial women & debt
Women’s financial responsibility
Women pay attention to branches
Women expect banks to provide tools
