Fintech-based solutions help improve women’s financial health
Fintech-based personal finance solutions have opened up a world of opportunity to help change the investment rhetoric and help advance women’s financial health
Research has shown that women are less confident about talking and managing their finances than their male counterparts, but fintech-based solutions can help.
In the thirty years since the fabulous Working Girl movie hit our screens, a lot has changed for gender parity in the workplace and outside. Movements such as #MeToo and #TimesUp have exposed the extent of sexual violence suffered by women, while campaigns such as #MeTooPay have exposed pay gaps that have fueled the fight for equal pay. Yet there is one area where the gender gap remains large and the taboo surrounding it remains unchallenged: women’s financial health and well-being.
Money management, financial ambitions and investment remain a sensitive topic for women. According to a report by Merrill Lynch Bank of America, 61% of women would rather talk about their own death than about money. For many people, especially women, money is filled with emotional meaning. The presence of money can mean opportunity, security, status, acceptance and power. Its absence can mean the opposite. It also has an emotional value: we see money as the way to protect our families and our children, to give them a future. No wonder this topic is so loaded that we almost feel embarrassed to talk about it.
However, the advent of financial technology and innovations in personal finance have created unprecedented opportunities for women to learn about different products, chat with like-minded women, and start investing in financial products that work for them. For example, fintech-based solutions like peer-to-peer mortgage loans have opened up new opportunities to help change the investment narrative and advance women’s financial health, as these solutions address four things women expect. financial services: more trust, more convenience, better communication and greater collaboration.
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Peer-to-peer mortgage lending, the practice of lending money to experienced real estate developers through online services that directly connect lenders and borrowers, allows investors to browse housing projects and invest everything. amount they feel comfortable with. An investor spoke of her own experience of investing in peer-to-peer mortgage loans, noting that what interested her personally in this product was the ease and intuition of investing; the fact that he was very transparent and how comfortable and secure she felt about investing. Of course, this only reflects that investor’s point of view, and every investor should do their own research and due diligence before deciding to dive into any investment product. This particular investor also mentioned that the fact that she was able to invest in affordable housing, a cause close to her heart, was particularly close to her heart.
This is crucial because these fintech-based solutions help tackle the factors traditionally suggested as reasons that prevent women from investing: lack of confidence and expertise, as well as overly technical language that does not meet the needs of women. women. According to a YouGov survey, more than half of women have never owned an investment product, with lack of confidence being the main reason, and while 45% of men would feel confident investing part of their money, the figure for women is only 28%. . Fintech solutions such as peer-to-peer home loans can allow women to see where their money is being invested and what it is helping to create. But there are many other examples of how fintech-based solutions have the potential to be used as tools to empower women, to help close long-standing gender gaps and correct inequalities in gender. the areas of investment, wealth management and financial planning.
Roxana Mohammadian-Molina is Director of Strategy at Mixing network.