Discover how financial advisers can empower women in South Africa by addressing financial inequalities and building trust. File photo.
Financial independence is not only a means to achieving personal goals but also a critical tool in breaking cycles of dependence that leave many women vulnerable to exploitation and abuse. Financial advisers have a unique opportunity to advance women’s empowerment by addressing financial inequalities and providing practical tools for independence.
With the growing demand for financial planning, financial advisers in South Africa now face the unique challenge of attracting and retaining female customers. Thato Mahapa, provincial general manager at Old Mutual Personal Finance, warns that despite the clear benefits of financial planning, many women hesitate to seek advice due to entrenched misconceptions and trust issues.
By addressing these concerns and tailoring advice to meet women’s specific needs, financial advisers can empower women and enhance their financial well-being. “These barriers often stem from advice that is misaligned with women’s experiences and disconnected from their realities, leading to scepticism and the belief that financial planning is a luxury reserved for the wealthy. The truth is that financial planning is an essential tool for everyone, regardless of income level,” she says.
Recent research by the International Financial Planning Standards Board (FPSB), including South African respondents, highlights the value of financial planning in improving quality of life and financial satisfaction. The 2023 FPSB Consumer Research shows that customers working with Certified Financial Planner® professionals, regardless of income level, report significantly higher satisfaction and confidence in their financial situation than those managing finances alone.
Yet, Mahapa says, many women remain reluctant to engage with financial advisers. She says that this is, in her experience, due to a lack of trust.
Building trust is one of the most critical steps in attracting and retaining female customers. The FPSB study found that 95% of customers trust their financial planner to act in their best interests, with this figure rising to 98% among those who work with a CFP professional. This level of trust is crucial, particularly for women who may already feel vulnerable when discussing their financial situation.
Cultural and socioeconomic factors significantly shape women’s financial behaviours and attitudes, often in ways distinct from men. For instance, women who grew up in financially constrained environments may see money as something to be carefully conserved rather than a tool for growth and empowerment. This mindset is often reinforced by societal expectations that place a greater burden on women to be the caretakers and financial stewards of their families.
“Cultural and socioeconomic pressures that shape women’s financial behaviours also play a role in perpetuating cycles of vulnerability, including gender-based violence,” says Mahapa. “By addressing these dynamics, financial advisers can support women in building the confidence to overcome barriers.”
“Advisers must recognise and understand these unique pressures, to see where she’s coming from, and to connect with her on a deeper level—acknowledging not just her financial goals, but also her fears, aspirations, and the cultural narratives that have shaped her relationship with money.”
“Building trust with female customers requires more than just demonstrating financial expertise,” explains Mahapa. “It’s about understanding their unique challenges and showing genuine empathy. Many women, especially those from disadvantaged backgrounds, have had to navigate financial systems that were not designed with their needs in mind. Recognising and addressing this inherent bias is the first step in creating a supportive and trusting relationship.”
Studies have shown that economic dependence is a key factor that traps South African women in abusive relationships. Through personalised, empathetic financial planning, advisers can help women break free from cycles of dependence, building a foundation for safety and empowerment.
Another common barrier is the fear of judgment or shame. In Mahapa’s experience, many women hesitate to seek financial advice because they fear being judged for their financial situation. This fear is often compounded by societal expectations and the perception that financial acumen is tied to self-worth.
“Many women feel embarrassed about their financial situation, especially if they believe they should be doing better,” she says. “As financial advisers, we need to create a safe space where women can discuss their finances without fear of judgment. This means listening carefully, offering reassurance, and providing practical advice that empowers them to take control of their financial future.”
Mahapa emphasises the importance of clear communication and transparency. “Financial planning can seem daunting, especially if customers don’t know what to expect. By clearly explaining the process, costs, and potential benefits, we can help demystify financial planning and make it more accessible to women.”
She underlines the importance of advisers “marrying” the technical aspects of financial planning with women's real-life challenges. She argues that financial planning for women should go beyond just numbers and strategies; it needs to consider the unique social, cultural, and economic realities that influence their financial decisions.
“To start connecting with women clients, go and spend time in their communities. Do the things they love to do, or spend time understanding their context and connect with them,” adds Mahapa.
“Effective financial planning for women requires a deep understanding of both the technical elements and the real-world challenges they encounter,” Mahapa says. “It’s not enough to provide sound financial advice; we must also consider the day-to-day realities women face, from balancing multiple financial priorities to dealing with systemic biases in financial systems. By integrating these realities into the planning process, we can create more relevant and effective financial strategies that resonate with our female customers and help them achieve their goals.”
During this period of reflection and action, we call on financial advisers to take an active role in breaking barriers for women. By fostering trust and understanding, they can empower women to take control of their financial futures, strengthening their resilience against societal and economic vulnerabilities.
PERSONAL FINANCE