Could a new face of women in wealth management bridge the gap?

In recent years, women have been increasingly taking the lead in managing and creating significant wealth while occupying top positions in major corporations and playing vital roles in various economic sectors. This shift has sparked discussions about whether this new face of women in wealth management could bridge the existing gap in the industry. Dr. Rufaro Mucheka, the Business Development Consultant for Africa at Jersey Finance, shed light on this topic in a recent interview on CNBC Africa. Dr. Mucheka highlighted the positive trend of more women making it to the list of Forbes' top earners over the years. She noted a remarkable increase in the number of women among the top 100 earners, signaling a rise in women's wealth creation. She pointed out three main areas where women have been excelling in wealth management: intergenerational wealth, executive leadership positions, and investing in businesses. This contrasts with traditional gender roles where women were primarily caregivers and men were the primary breadwinners. Dr. Mucheka emphasized that women's career paths are often more complex, with breaks taken for family responsibilities and relocation challenges, impacting their wealth accumulation. Discussing the differences in wealth management behaviors between men and women, Dr. Mucheka highlighted that women tend to prioritize investments that make a positive impact. They focus on areas where they can create meaningful change and ensure that their investments benefit both their businesses and surrounding communities. Women are perceived as more risk-averse compared to men, as they take a more cautious and long-term approach to financial decision-making. In contrast, men often prioritize short-term performance over sustainable, impactful investments. Dr. Mucheka emphasized the importance of empowering women through education and political participation. She noted the significant increase in women's participation in parliament over the past decades, with several African countries ranking high in female political representation. This trend has led to more women entering boardrooms, influencing investment decisions, and advocating for policies that support financial independence and gender equality. Some governments have implemented quotas to boost female representation in various sectors, leading to tangible changes in laws related to women's property and inheritance rights. The evolving landscape of wealth management is gradually shifting towards inclusivity and gender equality, with women playing a pivotal role in driving these changes. As more women become financially independent and actively involved in investment decision-making, the industry is witnessing a transformation in traditional wealth management practices. With a growing focus on sustainable investments and impactful decision-making, the rise of women in wealth management is not just closing the gap but also reshaping the future of the industry.