The number of wealthy women is soaring while the wealth gap between men and women is quickly narrowing. As a result, banks have placed considerable effort in various initiatives to attract more female clients. However, a recent report warns that this ‘champagne and chocolate’ approach will not work as women are looking for more from their private bank than a spa discount and a pink website.

Most high street banks have launched services and programs to attract and support female clientele, while private and investment banks have pursued different strategies. Some are beginning to provide some form of networking event or women’s resource such as a website or a newsletter, while others, such as Citigroup Private Bank in the US have gone as far as launching a service aimed specifically at women. However, many UK banks have yet to make a move in this area and, while many private banks and wealth management divisions say that they recognize the market significance of the wealthy woman, only a few appear to have taken direct action.

This gap in the market has led to a number of new firms attempting to tap into this niche market. Companies such as Independent Woman in Scotland, and Bramdean in the UK have focused their business proposition entirely on servicing the female client.

Some female-focused offerings have been extremely successful, although many private bankers still have reservations about their effectiveness. In the UK, the majority of female-focused offerings have been based around issues assumed to be relevant to women, and designed in a style thought to be appealing to the female eye.

This can be insulting to intelligent, sophisticated women who are looking for more from their private bank than a spa discount and a pink website. It appears as though banks are adding value hinges instead of trying to understand their needs - both day to day and long-term - and providing relationship managers who can relate and speak their language.

Unfortunately, many banks don’t yet have a specific budget to research the segment, so instead are having to focus on tactics rather than long-term goals. This lack of strategic thought is resulting in opportunities being missed, and leaves a potential gap in the market.

Related Research: Targeting Women in Private Banking 2007