Throughout history, women have encountered distinct financial obstacles, including the gender pay gap, decreased earnings during extended maternity leaves, and the significant challenge of retiring with less money than men, despite living longer. These challenges can have long-term impacts on their financial well-being and the ability to achieve their goals.

In February, Sophia conducted its first informal survey of mid- to high-earning women, primarily in Hong Kong and Singapore, to better understand the financial knowledge and behaviours of women, and to identify any areas where there may be gaps in their understanding or access to financial resources.

As well as using the data to inform the creation of new financial programmes aimed at improving women's financial literacy and economic security, the survey can also help women feel more connected and supported in their financial journey. By sharing the survey results, we can demonstrate that these challenges are not unique to any one individual. Many women share similar fears and knowledge gaps when it comes to finances. This can help women feel less isolated and more empowered to seek out resources and support to improve their financial literacy and confidence.

Our key findings were:

• 96 percent of our survey respondents believe their financial knowledge needs improvement. There is a gap in knowledge and almost everyone knows and feels it. Therein lies opportunity to make an impact and change.

• 55 percent of respondents receive their financial information from friends and family. A further 45 percent said that YouTube and Instagram were their source of choice. Only 2 percent used a financial advisor for trusted financial information.

  Financial information is overwhelmingly coming from personal networks and online. For women, the problem with personal networks is that not enough women are talking about money and investments so our personal network pools are limited.

  The other point to note on this is that whilst the rise of social media ‘finfluencers’ can be a good thing as people talk more about money, there is no barrier to entry so largely they are a group of unqualified people speaking from personal experiences. Furthermore, they may be working for sponsorship and therefore being paid to promote certain products.

• 57 percent of our survey respondents have not participated in a bank-sponsored financial education programme because they did not know their banks offered such programmes. A further 20 percent do not trust the banks as a source of financial information and just 7 percent have undertaken a bank's financial education programme. 

• The majority (70 percent) of our respondents trust an independent financial education company (defined as not selling financial products) the most when it comes to providing impartial financial information. 33 percent trust wealth managers; 16 percent trust financial media such as Instagram and YouTube; and just 10 percent trust banks.

• 32 percent of our respondents cite ‘too much jargon’ as the biggest personal factor preventing them from seeking financial education from a financial services company (bank/advisor/wealth manager). 16 percent of respondents said the bank staff or an app are not approachable or user friendly. Interestingly, 15 percent feel embarrassed about their financial situation and 14 percent say that what is on offer doesn’t apply.

• 82 percent of our respondents are most interested in investing and wealth management education programmes. A further 56 percent are interested in retirement planning and 35 percent in budgeting and saving. Finally, 13 percent would find credit management and debt reduction training most valuable.

There is a common misconception that women are not interested in or shy away from financial matters by choice. This belief may be fueled by the fact that women tend to keep more of their wealth in cash. However, is this really a fair assessment when considering that over 80 percent of wealth managers and financial advisors are male? Furthermore, those finance professionals primarily cater to male customers.

Sophia strongly believes that women are not inherently risk-averse or uninterested in the financial space, but rather they have been overlooked in the industry because few professionals resonate with them or represent them.

We know that women possess natural research skills, excel at spreadsheet analysis, and have patient minds well-suited for investing. However, they need someone who speaks their language and understands their unique perspectives and life milestones.

The survey revealed that an overwhelming 96 percent of women expressed a desire to improve their financial education. However, a significant portion of them reported a lack of trust in available sources of information or felt that the offerings did not resonate with them.

The survey findings highlight a gap in the financial services industry, where women express a clear interest in improving their financial knowledge, but are faced with challenges in finding trustworthy and relevant resources. This underscores the need for more inclusive and tailored financial education options that address the unique perspectives and needs of women, and build trust through reliable and relatable content.

The survey results further support Sophia's belief that women are ready to actively engage in financial matters, but require a supportive and inclusive environment that understands and resonates with their preferences and experiences, and empowers them to take control of their financial futures.