The shifting landscape

Despite historical hurdles, women are making significant progress. In the US, a Fidelity study found 67% of women now invest outside of retirement accounts, up from 44% in 2018. Similarly, a BlackRock 2024 survey shows an 11% growth in female investors across Europe since 2022.

What's even more compelling is that when women do invest, they often perform well. According to Revolut, women outperformed their male counterparts in investment profitability by 4% in 2024, making more effective investment choices on the platform. 

Women also demonstrate positive investing traits that support long-term growth. According to DWS, they tend to adopt a strategic, long-term approach, prioritizing financial security and stability over short-term gains. This leads to disciplined decision-making and a preference for diversified investments like ETFs. Women are also more resilient and patient during market volatility and less likely to sell investments at a loss compared to men.

What is in the way?

Despite recent progress, women still face significant challenges in achieving financial equality. The gender income gap is a major factor, with lower earnings, reduced investment participation, and career breaks for caregiving creating a cycle. This limits women’s ability to invest and widens the wealth gap. By retirement age, men in some countries have, on average, 42% more wealth than women.

Confidence also plays a crucial role, with only one-third of women feeling confident in their investing abilities. However, much of this gap stems from underestimating their knowledge. In studies, women were more likely to answer "I don’t know," but when that option was removed, their correct answers increased by 14%, showing hesitation, not a lack of knowledge, as the main barrier. This lack of confidence is amplified by media portrayals of women in investing as less knowledgeable or secondary, reinforcing the idea that investing is not for women and further fueling the gender investment gap.

To add to that, financial services, products, and courses are often not tailored to women’s specific needs, with marketing and language typically directed at a male audience. Studies show that 67% of women feel misunderstood or unheard by the financial services sector, which may also contribute to the issue. 

What can financial companies do to help?

To address these challenges, actionable steps are needed to make investing more inclusive and accessible. “It’s crucial that we demystify the idea that investing is only for the wealthy or financially experienced,” says Martins Sulte, CEO and co-founder of Mintos. “Investing doesn’t require large sums of money. Everyone can start with small, manageable amounts, particularly in straightforward assets like ETFs, allowing people to learn and build financial knowledge over time.”

He continues, “Increasing confidence is another key factor. The industry has to ensure that financial tools feel inclusive and welcoming for everyone. We need to prioritize designing user-friendly apps and platforms that cater to diverse investors, ensuring that all feel comfortable navigating these tools."

"Automation can play a key role here as well,” Martins adds. “By allowing people to invest in a way that is simple, consistent, and not overwhelming, we reduce the mental load. Automated investment tools that set up recurring investments in small amounts are incredibly effective, making the process feel more manageable.”

“With these adjustments,” Martins concludes, “we can encourage more people to take that first step in their investing journey, knowing that it’s within their reach.”