Online brokers are increasingly targeting female investors with tailor-made products and branding campaigns. The question remains whether this will help bridge the persistent gender investment gap.

Stephanie Wilks-Wiffen from eToro told DW that the catalyst was the 2024 Boring Money report, which showed the gender investment gap widening in the UK, with men making up almost 60% of investors. eToro subsequently launched its 'Loud Investing' campaign to educate and empower women. Similar initiatives have proliferated across the industry over the past year.

Women have long been underrepresented in investing, owning only about one-third of stocks. Barriers include lower earnings, less financial education, and historical exclusion from finance. In the UK, women were barred from the London Stock Exchange trading floor until the mid-1970s.

Experts argue that the industry should focus on women's strengths. Professor Ylva Baeckström of King's College London warned against overemphasizing women's under-confidence, noting that 'it's over-confidence that kills performance.' A study by Warwick Business School found women outperform men by 1.8 percentage points.

Women also have different investment priorities, favoring sustainable and ESG-focused investments. Christine Yu, co-founder of Sophia, noted that these needs are not being adequately served. The World Economic Forum estimates the financial services industry could increase revenue by $700 billion by better serving women.

The gender gap is narrower among younger generations. In Germany, more women than men started investing last year. However, researchers caution that this may not persist. Leah Zimmerer from the University of Mannheim pointed out that the gap widens with age, peaking between 40 and 50. It remains unclear whether Gen Z women will maintain higher investment rates as they age.

Source: www.dw.com