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Could a new face of women in wealth management bridge the gap?
Women are now increasingly managing and creating incredible amounts of wealth even as they head major corporations and are key economic players in various fields. Could this new face of women in wealth management bridge the existing gap? DR. Rufaro Mucheka, Business Development Consultant for Africa at Jersey Finance joins CNBC Africa for more.
Fri, 27 Aug 2021 14:39:58 GMT
Disclaimer: The following content is generated automatically by a GPT AI and may not be accurate. To verify the details, please watch the video
AI Generated Summary
- Increasing number of women entering the top echelons of wealth creation and management, signaling a positive trend in gender equality and financial empowerment.
- Distinct differences in wealth management behaviors between men and women, with women prioritizing impact-driven investments and long-term financial sustainability.
- Empowering women through education, political participation, and policy changes to enhance financial independence, property rights, and gender equality in wealth management.
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.
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