Page 49 - BANKING FINANCE OCTOBER 2021

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opportunities a finance institution opens up for the We also find that women are a significant segment of society
upliftment, empowerment, and development of women. that works mainly in an unorganized environment. The
Data from the 2017 report on the gender gap in financial Periodic Labor Force Survey (2018-2019) found that there
literacy by the Global Financial Literacy Excellence Center had been an unequal distribution of gender in domestic
showed that only 20 percent of women recognized the activities. The lockout imposed by COVID-19 further
economic concept (offset of 8 percentage over male). In compounded the situation. Women come to retain risky,
most developed countries that had high overall financial unsafe, and stigmatized jobs as front-line health workers,
literacy, the difference was higher. Financial literacy makes waste pickers, domestic workers concerning regular
people effective at budgeting, saving, spending control, debt employment, but the government-mandated minimum
management, participating in financial markets, planning wage wasn't paid to them.
for retirement and accumulating wealth, and considering
the humongous role played by women in anchoring families. These could shallow their development, personally,
professionally, and financially. Although women are getting
There are a variety of possible explanations why women are opportunities to move beyond household activities, their
not generally comfortable with finance. Primarily, the peer personal and professional development is still undermined.
group and social pressure may not encourage them to
engage in investment-related discussions. Secondly, from In addition to being treated with low pay, they are often
the role models they see, they seem to believe that financial subject to oppressive working conditions, less or no benefits,
management is the domain of men. Even when women know and unsafe environments. Industries and cooperative
about financial products, they may not invest appropriately. societies leverage a large population of women and add
Part of that has to do with the fact that women always look them to their workforce because it involves minimal
at wealth differently. spending.

For instance, they may perhaps be more attentive towards Of course, with the evolution of many professional
saving than investing. Some do not trust the information educational institutions and campus placements, there is a
provided by financial institutions or feel secure about paradigm shift in the employment and growth potential for
transactional services. More often, the advice generally is women in highly paid jobs, that too at an early age.
essentially geared towards men. For example, studies in Nevertheless, interactions with financially well-placed young
developed countries have found that the language used by women employees in different sectors throw a similar
investment enablers was more focused on returns-oriented pattern. Investment decisions other than linear are left to
(which suits men) rather than risk-mitigation (the concern their male support system.
of women).
Financial service providers need to take time to
Further, women may find themselves late in investing due communicate with women, both as customers and
to the multitude of family pressure situations and get into employees, to relate and interact with them from their
the picture mostly when they are vulnerable. For example, respective perspectives. With the Kantar study touching
when the spouse is not in good health or when a crisis occurs, women's opportunity costs, financial service firms risk losing
the responsibility might get delegated to them, but that is $782 billion in women's potential investable assets. Inside
not by choice but through compulsion. They are also at risk the retail walls, the ambeance, lighting, and the usual
of being misdirected by commission-based advisors who do banking jargon can have an intimidating effect on women
not have the best advice suited for women's financial customers.
knowledge and risk-taking ability. Stereotypes can also be
at play, which can lead women to get ultra-conservative However, women are far more receptive to advertising that
advice. Consequently, though they have the potential to take shows diverse groups of people than only one group, with
risks early in their careers, they may stick to low-risk emotional messages and showcasing women as role models
instruments that yield low returns. for investing and financial planning. Hence, probably, the

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