For many years, women working in the financial markets were unique. The 21st century is a dynamic of change and the proportion of women among all investors is increasing year by year. Who are the typical female investors? Data on this was shared by the XTB Group.
The past three years have been a very popular time in the financial markets. In 2020, we were dealing with low interest rates, increasing digitization and lockdowns. The last one meant that people had more time to find out how the financial markets worked. You can find free knowledge.
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However, 2022 will be a year of significant market volatility due to the tense geopolitical situation. Inflation around the world took its toll on people and motivated large sections of society to protect their accumulated capital. This includes operations in financial markets.
Financial markets are becoming more feminine
According to data from the XTB investment platform, 2022 will see a record-breaking percentage of women among new clients. reached 16%. Until recently, this percentage was much lower, but in recent years it has started to increase. What could be the cause?
The so-called gender gap, or the difference between the percentage of new male and female entrants to the capital markets, is 68%. This means that there are women in the industry, albeit a minority, and the observed upward trend is a positive sign.
I would point to the changing attitudes of women themselves in the modern world as a major reason for the increasing participation of women. Women are professionally active and creative, acting in areas previously thought to be the domain of men.
There is an aspect of gender competition here, or an attempt to prove that women can be as successful in this field as the opposite sex. – Comments Dr. Anna Szczepańska-Przekota, Koszalin University of Technology.
More interesting is the data on the percentage of women among all investors by country. According to XTB data, Romania has the largest share of female investors among financial market participants, at 26%. Her second highest percentage of women is the United Kingdom, so this result may serve as a model for other models.
There, they account for 14% of all investors. Czech Republic, France and Germany have the lowest percentage of women among investors. These are the only markets currently below 10%.
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How women invest
Over the years there have been many stereotypes about the presence of women in financial markets. Women and their investment choices are not significantly different from those seen for men. From 2020 to her 2022, the woman most frequently chose her CFDs on world stock indices. In this case, her two markets dominated: America and Germany.
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Interesting conclusions can also be drawn by looking at women’s choices in the stock market. From 2020 to her 2022, the woman clearly chose to invest in Big Tech. Suffice it to say that during this period, on the XTB platform, the woman was the most active purchaser of shares in her three American companies: Palantir Technologies, Tesla and Apple.
But this doesn’t mean the women didn’t believe in local businesses. Country data show strong local sentiment. CCC in Poland, CEZ in the Czech Republic, TechnipFMC in France and International Consolidated Airlines Group in Spain were the most popular during this period.
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How are women in the market different from men?
According to XTB data, women in financial markets are users with a slightly different profile than men. First of all, the woman is slightly older. Their average age is 37, and 35 for men. The biggest difference, however, is in how the investments are made.
In recent years, among men, more and more investments are made via mobile devices. However, it turns out that women are more traditionalists. Her 59% of transactions initiated by a woman were performed using a desktop application, i.e. a computer.
Admittedly, the disparity in investment device usage is large, but in my opinion it’s not surprising. – says Dr. Szczepańska-Przekota.
Women are naturally more cautious and need more information to make decisions. Women take longer to make investment decisions, but they are based on in-depth analysis and often use different types of consultation.
Trading through a desktop application creates a greater sense of control and security over your finances.Men, on the other hand, are quick to make decisions, impatient, and don’t listen to anyone. That’s why mobile devices are on their side. – Analyze Koszalin Institute of Technology experts.
Women can take over the financial markets
Gone are the days when the stereotype of “family responsibilities” dominated. As a society, we strive to build partnerships where everyone should have space for self-development.
The potential for a dramatic increase in the number of women in financial markets is enormous. This is because women willingly choose economics at university. For example, in Poland there are more women than men. So how can we encourage women to take a more active role in managing their finances?
The right direction is didactic activity in the field of women’s economic self-education. National and international organizations, clubs and associations can help women by providing accessible educational materials and workshops for them. This move could be a stepping stone into the investment world – I suggest Dr. Anna Szczepańska-Przekota.
A key issue in the labor market is the actions taken by employers to help women reconcile their careers with the role of mothers.
Tools in the form of offering women the possibility of part-time work or allowing flexible working hours will allow the creation of conditions for the development of women’s individual managerial skills – experts say I am concluding.
About XTB:
XTB Group is an international provider of trading and investment products, services and technology solutions. XTB Group entities are supervised by the world’s largest regulators such as FCA, CySEC and KNF.
