Wealthy women are a small but fast-growing segment for Australian banks, according to a study. Private banks are responding.
High-net worth women in Australia, generally defined as those with more than A$30 million, represent less than 10 percent of overall wealthy – but that number could grow quickly.
A new study by GlobalData shows that of the more than 82,000 entrepreneurs in Australia, just 8.2 percent are women. But that figure changes dramatically among those starting a new business now: 39 percent are women.
Dearth of Supply
Some of them will make a go of their business, but will find few wealth managers catering to their specific needs, according to GlobalData.
«If just 1 percent of these female entrepreneurs move all the way up to the high net worth segment, this would equate to 750 new high net worth female entrepreneurs – a considerable opportunity for wealth managers,» senior analyst Heike van den Hoevel of GlobalData, says.
Carving Female Niche
In addition, rich men in Australia are of above-average age compared to the wider region and to women. This means that male business owners will be handing over the reins, sometimes to women.
Australian is a sophisticated and crowded banking market, but private banks are already differentiating themselves in order to win new business, van den Hoevel says.
Private Banks and Robo-Advisers
Westpact, one of the few private banks with a business unit set up exclusively to cater to women, is prime among them.
But robo-advisers targeting women such as Miss Kaya, which claims to be the first female-focused financial platform, are also competing.
«It would be great to see more private banks support female entrepreneurs with financial services that recognise this segment’s distinct needs,» added van den Hoevel.
