How will technology impact women’s wealth in the approaching years?
I took part in a dynamic panel discussion on the subject VoiceAmerica Business Channel: Technology Revolution Radiohosted by Bonnie D Graham On July 20, this was precisely the query. My panelists were three female leaders, all enthusiastic about the longer term of ladies’s wealth and technology: April RudinFounder and President of Rudin Group, which designs customized marketing campaigns for among the world’s leading wealth management firms, fintechs and family offices; Eva Grønbjerg Christensen, founder and CEO of tech startup Sustainify, which provides sustainability data to investors; And Iris ten TeijeCo-founder of Koia, a platform where anyone should purchase, sell and trade fractional shares of such iconic assets as watches, whiskey and Pokémon cards using non-fungible tokens (NFTs).
Our conversation identified and explored three key themes. What follows are calmly edited excerpts from our discussion, reproduced with Graham’s permission.
1. The shift from a male-centric to a female-centric investment environment
According to the “Globally, the investable assets of high net worth individuals are expected to double in almost every part of the world by 2030.” And we all know this Wealth transfer is prone to be an important demographic trend around finance and investing in history. Critical, The majority of this wealth transfer goes to women.
April Rudin: Women outnumber men and are heavily represented at 51% of the population. Widows and other groups of ladies will turn out to be key contacts for corporations and funds seeking to attract latest assets. Women proceed to dominate control of the family’s personal wealth as their husbands’ life expectancies are shorter and financial advisors have no idea serve and market to this growing segment. Furthermore, women will proceed to keep up dominance in wealth creation through their very own entrepreneurial ventures, other investments, etc. And financial services corporations have to know serve and appeal to women whose wants/needs are different with their measures of success.
Iris ten Teije: A changing money culture will result in more women investing. The culture surrounding money is changing rapidly. With the emergence of recent platforms, it’s becoming an increasing number of normal to debate salaries and investments. This increased level of transparency gives everyone, but especially women, the boldness they need to start out investing, have the courage to ask for a raise, etc.
Eva Grønbjerg Christensen: We are witnessing a shift in power attributable to a shift in money and a shift in wealth. As women’s financial knowledge increases, we may also see a rise in power. Knowledge is power, and as we watch women’s wealth grow, we may also see growth in financial products and solutions for girls. Women may also pave the best way for other minority investors. Technology products provide more opportunities to share and receive knowledge, enable access to financial products, enable a shift in power and open doors.
2. Technological tools ensure a more even distribution of wealth
From that Quantitative Rich Thinking Survey 2022A staggering 64% of 18- to 29-year-old U.S. women are either already investing or plan to start out investing inside the yr. This is greater than every other age group. Of the ladies on this demographic who’re already investors, 96% use online platforms.
Stewart: New women-friendly concepts and investment spaces have emerged. Women – and their daughters – can visit financial education web sites, platforms and communities where they will communicate, profit from others’ knowledge, share information and be inspired. This space will proceed to evolve exponentially.
in Teije: Investments based on values, interest and keenness will increase. Thanks to technology tools, it’s easier than ever to speculate in what you are enthusiastic about or what you care about, be it collectibles, thematic ETFs focused on climate or women-led corporations, or startups, for instance. This positive trend will result in more women getting involved on the planet of investing.
Grønbjerg Christensen: Sustainable investing can be one strategy to narrow the gender wealth gap. We are currently seeing sustainable investing move from area of interest to mainstream – driven by regulations, climate awareness, social and gender issues and plenty of latest investors entering the market. Because a lot of these latest investors are women or Generation Z and care about greater than just profits, we are going to see an increase in investments based on personal values and holistic considering. Companies and investments are measured by their ability to survive various crises, be they environmental, social or financial. Here, various technical instruments will help drive change towards a more equal distribution of wealth.
This has already began from the underside up, with online communities and various technology platforms and tools making it easier for underrepresented investors to share knowledge and experiences and access the market without the normal gatekeepers and financial experts.
Rudin: Social media will proceed to be a “go-to source” for financial literacy information for NextGeners. NextGeners proceed to value the knowledge of their friends and community over that of authority figures equivalent to parents and banks. According to the Viacom Interference Index In 2013, 71% would quite go to the dentist than trust what banks say. And this report was just the turning point. Since then, there was a gradual trend toward investment communities like Reddit and eToro that will let you compare your results with those of others.
in Teije: I imagine that social investing will likely expand beyond discussing trading ideas online in the longer term. New technologies are opening up opportunities not currently available to retail investors, just as early investment clubs allowed people to pool money to purchase stocks. The space is ready to evolve rapidly over the subsequent few years, with investors collectively bidding on every kind of physical and digital items. In the long run, I imagine that even the most costly assets, equivalent to large infrastructure projects, can be at stake – think solar farms and even airports.
There remains to be a variety of work to be done to make this possible, particularly on the regulatory level, but with the precise mixture of centralized and decentralized infrastructure and increasing opportunities for the true world to interact with blockchain technology, social investing is prone to turn out to be much more popular outstanding over time. Increasingly, high-value assets are captured by groups of like-minded individuals, often spread across the globe, brought together by a standard vision, goal or worldview.
3. Women entrepreneurs and leaders are changing the technology industry
Stewart: Women start three-quarters of all latest businesses, as I said in The Future Is Female: COVID-19 Fuels a Surge in Women Entrepreneurs: “Today’s startups are the giant companies of the future.” There have been quite a few over time Obstacles to women-founded businesses—including lack of funding and systemic sexism—and the pipeline issue was a selected obstacle. Not all startups turn out to be unicorns or private corporations valued at greater than $1 billion. But when men start twice as many corporations as women, which was historically the caseEven in 2019/20, all other things being equal, there can be twice as many unicorns founded by men as by women. Therefore, an increase in women-led startups post-pandemic is an early indicator of the longer term.”
Women-led startups will grow as more successful examples of women-led startups growing and thriving turn out to be available and funders construct on previous successes. Two examples are Hello heartwhose CEO is Mayan Gonnen-Cohen, and IRP systemswhose CEO is Moran Price.
More excellent news, a compelling one Deloitte April 2022 report says: “In North America the TMT [technology, media, and telecom] The industry now has one of the highest proportions of women on boards (second only to the consumer industry): 25% of board seats are held by women, up from 17.4% in 2018 – supported by board diversity laws in states with high proportions by women TMT companies like California and Washington.”
Rudin: Historically, the promoting and marketing industries have been male-dominated and about as sexist as you’d expect. The excellent news is that the gender balance in traditional promoting and marketing has turn out to be more equal, however the bad news is that Adtech and MarTech have been the brand new boys’ clubs during the last decade, with all of the bro culture that comes with it. The recent positive trend is that technology on the whole is on the rise increasing proportion of female staff, technical staff and (especially) female managers. The numbers are still too low – only a few quarter of executives are women – but that is a rise of virtually 20% in only three years, from 2019 to 2022.
I predict three things:
- The proportion of female executives within the technology industry will proceed to rise and can reach over 30% by 2025.
- This may also occur in Adtech and MarTech.
- This will make the space less sexist and biased.
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