Around a third of all private companies in the USA are controlled by women, generating $1.4 trillion in sales. Despite this, women have recently reported being consistently let down by male financial advisers. With the number of successful womanpreneurs increasing, banks are losing revenue by failing to understand the value of women in business. Here is why banks should be connecting with women in business.
Women More Likely to Recommend a Good Bank
When it comes to bad customer service, women are the most likely to avoid re-visiting the organization involved. However, they are also more willing than men to recommend good financial advisers. It is therefore essential that banks do more to cater to the needs of women in business, who want to be respected and treated in the same way as their male counterparts.
Cbs-cbs.com recommend that financial advisers do more to reach out to all potential clients. Women have been shown to be more brand loyal to a organization that is understanding and helpful. So understanding the needs of women in business can produce repeat customers and increase word of mouth advertizing.
Banks Run By Women Less Likely to Fail
Female clients can provide increased revenue for banks who connect with them, but they can also be a useful part of the management. A recent study suggests that women-led banks are less likely to fail during a financial crisis.
However, due to the behavior and personalities of management level financial advisers, women feel less confident in applying to high level banking job. Women are often judged on their choice of business attire as being unsuited to the role of CEO, despite evidence suggesting them to be more conservative and measured during a crisis.
The EU is considering legislation that requires 40% of a public company’s board to be female. This is a step in the right direction that could be taken in the USA. Male dominated boards are less likely to connect with women businesses, denying them the same access to financial investment. This has an overall negative impact on the economy.
Bankers have a poor reputation among female business owners. Of course, this is not true of all of them, but the reputation exists nonetheless. They need to shift their behavior if they want to connect with women in business in order to boost their own revenue and increase economic performance.