“We need to understand what women want and what they need,” Kriett said.
That means offering investment options that speak to the type of investing preferred by women, who are typically more risk averse than men, Kriett said.
To better capture female investors, Kriett and Schuettel said firms must change their thinking. They need to provide low-risk financial products that appeal more to women.
“Think about what it is you want to provide women,” Kriett said. “Then adjust your investment strategy to make them more targeted to women.”
She said larger firms should decide how to address this situation and determine the best operating system for catering to female investors. Kriett said firms have options either by creating a separate initiative or making it a part of their ongoing strategy.
“You can do something completely separate … or you can incorporate it into the offering but just keep in mind what women really want in terms of their needs and preferences,” she said.
Firms have begun to reach out more to female investors. There are signs that the message is getting through, however it is not as widescale as it should be yet, according to Schuettel.
“There are examples out there of companies trying to leverage or improve this relationship between financial advisor and client,” she said. “If you are trying to match the personality of the financial advisor with the investors, we have seen in our past projects that this can lead to improved retention rates.”