RT White-Paper6 2016-3 PDF
RT White-Paper6 2016-3 PDF
RT White-Paper6 2016-3 PDF
W H I T E PA P E R
Barbara Stewart
MARCH, 2016
About Barbara
Barbara Stewart, CFA; is a Partner and Portfolio Manager at Cumberland Private Wealth Management,
where she works with high net worth investors, both individuals and families. At the same time,
Barbara is also a researcher and writer on issues around women and financial literacy, and published
the sixth installment of her Rich Thinking series on International Womens Day in March, 2016.
Barbara is a frequent keynote speaker at global events relating to women, money and financial literacy,
participating in events across three continents: Istanbul, Toronto, Helsinki, Stockholm, Reykjavik,
Luxembourg, Paris, Singapore; Copenhagen, Bucharest, Madrid, Vienna and Frankfurt. She speaks at
both larger public conferences and at private corporate functions. Barbara is a frequent interview guest
on TV, radio and print, both financial and general interest, as well as a former columnist both in print
and online for Postmedia newspapers in Canada and the Mrs. R website.
Sections
Contents
ii Introduction
Contents
1
2
3
4
5
6
Follow movement:
behaviour drives financial outcomes
The business of advice goes to extremes
iv Commentary
v Conclusion
vi Methodology and Acknowledgements
vii References
Introduction How smart women are shaping the future of the financial industry
Welcome to the sixth white paper in the Rich Thinking series I promise you are in for
an exciting read!
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2.
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For this years research, I interviewed 60 female and male global leaders to uncover
six themes about how smart women are shaping the future of the financial industry:
ii
The most important conclusion from my studies is that more women = more money!
Research has proven that diversity on senior management teams and boards makes
companies more profitable leading to higher share prices. Inspiring women to invest
will not only lead to better liquidity, but reaching out to the increasingly influential
and financially powerful female audience will equal more money across all industries.
Introduction
Lets start with a quick review of the key findings from my previous years research on
women and money: 1) actions speak louder than words; 2) women learn through stories;
3) women invest in causes and concerns that matter to them; 4) smart women get started
investing; and 5) women are risk aware, not risk averse.
In fact, as expert on gender and crime, Dr. Candace Kruttschnitt, Professor of Sociology
at the University of Toronto told me, There is more variation within each gender than
between genders. And perhaps even more importantly, We may show different traits
at different times.
On risk tolerance and gender:
To understand risk tolerance, we need to look beyond the traditional asset mix. My
research has shown that women invest sizeable amounts of their investable assets outside
of their portfolios because they want to invest in causes and concerns that matter to them,
and think that they cant do so through the usual stocks and bonds. The big opportunity
for the financial industry is to somehow connect the dots and demonstrate to women that
a) they understand these value preferences and then b) show them how they can allocate
at least some of their meaningful investments via traditional equity markets.
Given that the financial industry of today largely evolved in a time when male
behaviours and traits were dominant, incorporating more behaviours and traits seen
as female is both a challenge and an opportunity for financial service firms.
On diversity:
You will see this word used in many of the quotes contained in this white paper. What
does diversity mean in the context of how smart women are shaping the future of the
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iii
NO. I can see why people might think that: there are a lot of badly designed surveys
that perpetuate messages along the lines of women dont take risks or women dont
like to invest. The surveys that lead them to those conclusions only measure risk
tolerance by asking a single question: do you have any investments in traditional
equities? The assumption is that the only reliable measure of risk tolerance (or even
financial sophistication) is whether someone owns exchange traded equities instead of
analysis of the overall portfolio of cash, bonds, real estate, private equity and aspirational
business ventures.
Introduction
The diversity that we each have as part of our background and experience lends different
perspectives and experiences and it is these differences that lead to more robust outcomes
in business.
iv
Jason Voss, Content Director for the CFA Institute in New York put it this way, Were
talking about laws of nature here. This shouldnt be at all controversial. When we look
at an ecosystem (such as the plant and animal life in wetlands, or alpine, or desert) we
consistently find that more diversity leads to a BETTER ecosystem. More diversity
creates a biological environment which is more responsive, adaptive, and handles shocks
or changes better. Those are great things in a habitat like the desert they are also great
things in our workplaces!
Introduction
financial industry? Some people almost look on the term in a negative way, and it has
become politicised. The dictionary definition is that diversity means being composed of
different elements. In a white paper on how women are changing the financial industry,
it obviously is referring to gender diversity, but we might want to think about some
other ways of looking at the word.
Emilia Bunea
Bucharest, Romania
My first exposure to financial education was during the time of communism. My great
grandmother gave me my first savings booklet when I was 8 or 9. Another important lesson
was living through our change in regime in 2007 and a period of hyperinflation (200%.)
I suddenly understood the idea that real value is different from nominal value.
1.1
In the future, FinTech will disrupt the existing models in our finance world. We will need
players with strong financial knowledge to pair with the technology experts. Start-ups are
becoming the norm and financial skills will be in great demand.
Finance has been beaten up a lot in recent years our industry feels like the bad guys!
But finance flows through the veins of most jobs and most businesses. When I am hiring
for middle management jobs in my firm, we implicitly require financial knowledge. I will
never accept an idea from our team that isnt backed up by a business case. And I dont
expect people to ask for help from the finance department. You need to have a solid grasp
of compounding and the basic structures of profitability.
My more serious interest in finance was sparked by reading the book Liars Poker just
after the fall of communism. It was a very exciting time for me! I discovered that there are
various levels of financial knowledge and each level will give you certain benefits. I was
inspired to get my CFA Charter because it clearly offered a lot of advantages.
Sharon Craggs
Singapore
Financial knowledge is a life skill for every person. It is particularly important for women
because financial independence (which is an outcome of financial knowledge) nurtures
mutual respect in a relationship. Lack of financial independence has resulted in much
suffering and limited options for women. There is a saying: optionality is positive.
Acquiring financial independence allows us to create more options for ourselves, flourish
and choose the life we want.
In terms of new frontiers in the financial industry, the marrying of finance with technology
tools has the potential to radically disrupt the business model of established players. There is
already a visible trend of fewer MBAs opting for investment banking jobs and instead being
steered into the tech industry/Silicon Valley.
My advice is to acquire financial knowledge for the same reasons you would any other
kind of knowledge: to learn and grow and equip yourself. So that you can manage yourself,
your finances and pursue your dream career whatever is of value to you.
Toronto, Canada
1.2
In most start-up businesses, there is usually only a single person on the management team
who has more than a basic level of financial knowledge. And that person has a very
different perspective from those in marketing, sales or other areas. We focus on the fact that
we are in business to be making money. So, do we have more cash coming in or going out?
Money makes the world go round for both individuals and businesses you may not need
to be a financial expert but you do need to understand the basics about budgeting and
managing money.
Even when I was quite young I was financially inclined. I thought I was an oddball in
grade nine because I already knew I was going into business. At that point in my life, I
didnt ever think about the differences between men and women, most of the time I was just
thinking Screw it, Im going to go and get what I want! To me, getting ahead meant
getting what I wanted in the business world sooner, and then being able to have the
flexibility to do more of what I wanted with my life. I strongly encourage everyone to take
at least one finance course because it will touch everything you do!
Florentina Almajanu
Bucharest, Romania
I started my career as an engineer but I decided to make the switch to the finance field
twenty years ago because I was working daily with financial concepts. I strongly believe that
financial studies are useful in all areas not just in insurance. It is critical to have the
ability to analyze as much as possible when making any kind of decisions in any industry.
For example, if I need to renew my mortgage, I dont simply ask two or three banks for their
best offer on a mortgage rate. Having financial knowledge allows me to think about this in
a different way. I put forward a lot of questions to my banker (e.g. what is your commission
embedded in this calculation?), then I go away and consider all of the costs before making
my final choice.
I feel now at age 50 that it is my time to give back to others, especially young people. I enjoy
sharing my knowledge and advising others around me. I am involved with the CFA Society
Romania because I consider the charterholders I have met to be very professional and ethical.
It is important for our society to have such people as role models for good behaviour. I advise
women to obtain a professional financial designation.
Dafna Lorincz
Gabrielle Mad
Montreal, Canada
I have been working in digital media since 2012, and everything has been going well
in fact, I was named one of the 30 under 30 leaders of the future in Quebec by
Infopresse! And I did it all with minimal financial knowledge! But as a result of my
success so far, I will soon manage a small team and lead a whole project in the business
I work for. I recently came to the conclusion that I dont know much about finance; and
I think I will want to acquire financial knowledge in the years to come. Being smart
about digital has taken me this far, but I need financial knowledge to go further.
There are not enough women in the fields of technology or investment banking, and I wish
this would change. Its up to us (women) to change it. Starting with our children, community
and we should spread it around us as much as possible. It is up to us to change how we are
perceived. People think we are too critical, maybe even mean. In technology and investment
banking, women appear very strongsometimes even tough. I believe it seems that way
because we look into the smallest details. I think it is in our nature women always plan
ahead and try to have everything covered. Some say we dont take risks because we ask so
many questions whereas men are more inclined to just dive in. But women take calculated
risks. Is that being too cautious? Not for me. I hate having regrets Id rather take my time
and think things through before I make up my mind. I am confident in my decisions and
I work hard not to regret my decisions and I dont!
1.3
I decided to become an industrial engineer and then went on to take an MBA. I always
wanted to be an entrepreneur and I felt it was important to have a basic finance education
to have a good start. Then as I progressed, I realized that I needed to know as much as
possible. I still dont feel like I know enough there are a lot of details and a lot of complexity
in the worlds of investing and finance.
Jane Barratt
I studied accounting and finance as part of my undergraduate business degree, but I only
acquired real financial knowledge the hard way: both through mistakes at work and at
home, and by reading until I understood key concepts. I am 100% sure that this knowledge
helped me get ahead in my career in advertising. So much of our work performance is
subjective, but the numbers are not. Understanding big picture numbers (such as economic
data, competitive intelligence and share price fluctuations) helped enormously with
contextualizing issues within the workplace (falling margins, need for layoffs, or budget
restrictions) especially during the challenging years.
1.4
With the benefit of hindsight, I now see finance as a core skill that ANY career person
should have in their toolkit. From entrepreneur to marketer or therapist to artist:
understanding how money flows through your own wallet and in the world at large is
critical to long term security and success. Having said that, with the advances in digital
currencies and identities there are huge opportunities for people who can understand the
current landscape well enough to disrupt it for future generations.
Even more instructive was the work I did with Fortune 500 companies and their brands.
I used what I saw to build my own investment portfolio, and came full circle to then taking
security exams and becoming an investment advisor.
Fern Glowinsky
Toronto, Canada
I am fortunate to have parents who encouraged and empowered me from a very young
age to pursue a career path of my choice. There were never any limitations placed on me,
gender based or otherwise. I was drawn to mathematics and numbers early on, no
matter how complex the problem, there was always a right or wrong answer. Over time,
I developed an interest in economics and how markets work. In doing my JD/MBA,
I continued to evolve my business knowledge and my financial acumen, including the
ability to really understand financial statements, as I recognized that was necessary to be
successful in the business world. In my role today I have a broad scope of responsibility,
driving transformational change and that is extremely gratifying. Of course I have had
challenges along the way, yet being driven and having a positive outlook and the desire
to continue learning and growing has benefitted me greatly, both personally and
professionally.
The financial industry, just like every other industry (and some will say that every industry
is the financial industry!) needs to hold on to its entrepreneurial existence. No matter how
established a business is, it should never stop exploring, re-inventing, and keeping up with
technology. And in such an ever-changing financial climate, women have a clear advantage.
Naturally born multi-taskers, women inspire peers and businesses in their ability to juggle,
learn new skills and make the most of their time.
The most inspiring example I could think of is Sheryl Sandberg. Her book and movement,
Lean In, are bringing forward women from all four corners of the world. Sandberg's
experience as a business leader and an entrepreneur combined with the daily need to juggle
between work and family created the movement which now inspires millions of women to
create, learn and lead.
Looking at these shifts, every finance graduate should keep her options open: consider FinTech
as your next cool job, and invest some time and creativity in learning to code this will help
you understand the industry better. On a more personal note, my advice to students is simple:
if you are talented, the sky is the limit. Be smart and open-minded and you can do anything.
School is the mind- and door-opener, but never forget to be creative and think about whats
interesting for you. Today's fast-changing financial markets are hungry for multi-skilled,
creative minds.
The finance industry is already developing in the FinTech direction, and will continue doing
so for the immediate future. A recent example for this trend is Israel's IBI, one of the country's
largest independent investment houses, which just announced it had raised more than NIS
200 million (US$51 million) for a consumer credit fund based on a peer-to-peer (P2P)
platform technology. This investment is just one example of how traditional financial
institutions realize the need to shift towards FinTech.
1.5
S. Siobhan McCarthy
Vancouver, Canada
2.1
Smart women are shaping the future of the film industry by being transparent. Within my
generation we are banding together there are a lot more women trying to champion each
other and share information and we are helping the next generation become more
educated and informed. When it comes to financing films, there is the union rate and the
going rate and there is always some wiggle room around that. You need to do your due
diligence to find out what the real budget should be what is the going rate? What has
been funded before? Who can help you? My job is to find money and resources to make my
content. This requires what I call the three Bs: begging, bartering, and borrowing.
To make an independent film, it takes a team of independent contractors to get the job
done. My network is my net worth.
I acquired my financial knowledge through the school of hard knocks. I now tell my son
not to buy into any Disney notions about how relationships work: the number one priority
for anyone should be financial independence. Most of the women in my circle in the film
industry that are independent producers dont usually have the ability to rely on home
equity loans or the like. If I need to find gap financing or cash flow, I need to get creative.
I have had to train my (female) banker to really understand how my industry works and
I meet with her quarterly to update her with my business plans.
Therese Wettergren
Stockholm, Sweden
Although my formal area of study was computer science, I recently took a course in
financial acumen. I wanted to be able to look at a companys financial statement and
know what it means in the context of my job as a tech business evangelist (sales). To give
proper advice and direction in my role as advisor, I need to fully understand a company
as a whole: my job is to take their business to the next level. It is for my own sake that
I decided to increase my financial acumen, so that I can talk directly to the C-level
executives. Im still young and I might not be the person they expect to see represent
Microsoft. I need to have financial knowledge. I need to be the best!
Every business is now a digital business. Thirty years ago you had to study forever to learn
how to use large mainframe computers. Now you dont need to understand very much at
all about the machine you are using the business side is way more important you have
to understand what to do with the technology. You can have the most brilliant software
but you need to know how to make money from it. The big tech firms see that financial
knowledge is a key part of understanding how to make customers happy.
Candace Kruttschnitt
Toronto, Canada
I can tell you that crime is certainly a financial industry. And a lot of people think Oh
yeah, crime men do it. But speaking from my experience doing research on inmates for
the last 20 years, women use a lot more smarts when committing a crime. They know very
well how to strategically pick their targets and minimize risk. Did you know that women
are actually quite good at the illegal drug market?
Im pretty sure that the broader financial industry could use more strategic thinkers.
Dr. Kruttschnitt drew on Unpacking the Gender System: A Theoretical Perspective on Gender Beliefs and Social Relations,
by Cecilia L. Ridgeway and Shelley J. Correll, published in Gender and Society, Vol. 18, No. 4 (Aug., 2004), pp. 510-531
2.2
The salience of gender in any given context can be linked to stereotypes about the ability of
one gender or the other to perform in that context. If we were to wave a magic wand and
remove the stereotypical thinking in the world of finance, we may find that women offer
a real comparative advantage with skillsets that include risk management and strategic
perspective.
Andreea Folea
Copenhagen, Denmark
I started learning finance because I was passionate about the financial landscape and its
institutions, while having a keen interest in mathematics and programming. Finance
seemed like the perfect combination of analytics, intuitive thinking, and creativity and
I definitely think I have made the right choice. During my studies, I was working as an
analyst for a power trading company and I had the opportunity to gain awareness about
the energy markets. After graduation, I started my career in an oil trading company,
working as an Application Manager in charge of CTRM (Commodity Training and
Risk Management) systems. I got this job because I had the financial knowledge needed to
understand the complexity of the trading business and I had in depth expertise in the risk
landscape (VaR, P&L calculations, etc.) That, together with my capacity to understand
the technical specifications of systems made me a very strong candidate. Nowadays,
financial knowledge is a versatile skill that can be applied to a number of different fields,
like IT, business, law, you name it!
Louise de Grandpr
Toronto, Canada
The internet has changed our industry in ways that you might not expect. Although
millennials do more research online than older generations, they also place a high value on
the advice from our travel consultants. It is a bit of an oxymoron because you would think
that younger people are so digital but they are interested in asking a real person if a trip
makes sense and if they can trust what they have read online. They also seem to have a
different perception of travel it is more about the overall experience rather than just
checking places off their list.
2.3
The internet has raised the bar for our industry: we need to be better at our jobs; we need
to actually add value to the customer experience. Everyone is more educated now by the
time they get to us. And more of our female customers are the ones making the decisions.
Ive been in the travel business for over 25 years and I run the company the same way
I ran my budget when I was 16 years old. We dont spend what we dont need to spend.
Financial discipline is critical to personal and business success.
Tom Hart
Minneapolis, USA
Being a lawyer isnt just about knowing the law, it is also a business. We put a lot of stress
on legal knowledge, but financial knowledge is important too. One important decision for
any young lawyer, whether male or female, is the choice of an area of the law in which to
specialize. Both litigation and transactional lawyers need a combination of hard work,
good judgment and constant advocacy.
Litigation, however, is by definition an adversarial process. One needs to stake out a
position and defend it vigorously. Ultimately, one needs to win to be seen as a success.
On the transactional side, the goal is a little different: get the deal done, on a fair and
equitable basis. I sometimes think of a commercial negotiation as similar to a family
dispute, where the ultimate goals are both to resolve the problem and find a solution
that protects the family as a whole. There is, of course, a huge range of negotiating styles
among successful lawyers, but my own experience tells me that women tend to be a bit less
concerned with the notion of winning, but focus, instead, a bit more on getting to yes.
Vienna, Austria
Stockholm, Sweden
I cant see any other education being more important than finance whatever you want
to do! It gives you the language that is the backbone of any industry and any society.
In addition, finance has a dual role you can either use it to get a helicopter view of how
companies work and cross-function, and/or you can use it to drill down deeper into the
details. In my industry (media), finance is becoming ever more important. Using our
venture arm as an example, we need to have people scouting for the next start-ups and this
means they have to understand how we work with the companies that we invest in. It is
crucial that we have financial expertise on every leadership team the job is a lot about
analysing the meaning of the data. Robots are great at collecting, sorting and presenting
data in a draft report, but thenwhat actions do you take?
2.4
Just looking at my business incubators small ecosystem of start-ups, I see that they
definitely need people with financial acumen on their team. Whether they are working
on an app to help society better manage diabetes, or a 3D printer company to disrupt the
supply chain, every business needs a financial person. It is a series of critical roles: to be
able to read financial statements, understand what it takes to make a profit, know how
to judge the quality of a business and how to put together a business plan. It is never just
about finance, you can combine your knowledge with whatever you feel as a person is a
good thing to work on. If you want to move the world in a new direction, finance will
help you move whatever you want to move.
INiTS is ranked 3rd best academic incubator in Europe and 11th best worldwide.
Ilan Birnfeld
Regina, Canada
I have never had any formal financial education I have kind of picked it up through life
experience. By profession, I am a full-stack engineer (I write code and build web apps) but
I have always been involved in music in some way. Recently Ive been focusing on it a lot
more it is such a nice creative adventure. And Ive been attempting to find ways to
support myself as an artist so that it can become sustainable work. I want to continue to
make art and share my art with people.
There's a disproportionate amount of men to women participating in the music community.
This is sad because being part of something is a huge part of making music. This was
initially a little bit overwhelming for me, but I have discovered that you can develop a sense
of confidence and comfort in a community via social media so I chose to put my art on
digital platforms rather than traditional channels.
When I released my album Amateur I was pretty much winging it: I recorded it, released it
and put together a marketing plan all within a week. My distribution was done exclusively
using my knowledge of technology I researched music blogs, sent out hundreds and
hundreds of emails, ran social media campaigns, tweeted, and asked for helpI really
pushed it! I was totally driven and it paid off. I received recognition as the #1 bestseller
album on BandCamp.
Hopefully my story will inspire other female artists to share their work through the digital
marketing realm. It is a much faster way to get validation. Most bands that I've seen the
numbers for average $200-300 in their launch week in digital sales and I made $1,500 in
my launch week. Best of all? I recorded it, mixed it and released it myself. The thing was
all mine.
2.5
Eden Rohatensky
In my opinion, all financial jobs will be partially cool in the future, since most of them
will include tech aspects. I can even tell you that being an accountant a decade from now
will require a high-tech like set of skills. My advice is to include some tech/IT courses in
your education and to be familiar with tech trends. A smart woman I know that is
shaping the future of the financial industry is Rakefet Russak-Aminoach, the CEO of
Bank Leumi (the second largest bank in Israel.) She is considered to be one of the most
innovative bank CEOs in the world and she is leading a new concept of a digital bank
that is trying to be innovative on a global scale.
customers.
Per Eriksson
Stockholm, Sweden
3.1
For example, I have entered meetings with my mind set on certain decisions, when suddenly
someone will ask but why? We begin discussing and everyone brings different perspectives to
the issue. We learn from each other and learn to see things from a new angle which leads to
smarter decision making.
This topic of how smart women are shaping the future is a very important one. I feel strongly
that we will have a better society and a better world if we lose the debate about either/or
and move towards a balance of men and women in all organizations.
Paul Lee
London, England
One of the things I get asked a lot is how does technology change peoples behaviour?
I answer it doesnt!
There has been a definite trend of messaging versus verbal and I think this might be stereotyped as a male thing. In my experience this is indicative of people being quite shy. And one
way of overcoming shyness is email. Not having to talk. If you feel awkward in face-to-face
conversations, you can speak in standard font it is a leveler. What I see happening, is that
people are moving away from real-time conversations and moving towards responding when
they want to with real-time excuses for answers. I am talking about deliberate ambiguity
using photos or images. It might feel like real communication but it is actually quite poor.
I think it is a fundamental human need to be social. The mainstream individual
(or customer) has a yearning for a sense of belonging. Most of us like empathizing, and
we prefer to do business with someone you can talk to. Over the next generation, the most
successful people will be those with the most empathy and those with the best people skills.
3.2
I see a lot of bold, influential women recalibrating corporate priorities for instance towards
sustainability. An example from my personal experience would be a female executive at a
large public company who is initiating a sustainability index for Germanys largest
companies to deemphasize harmful corporate practices throughout the market. I have also
noticed female CFOs be particularly willing to put the interests of the corporation ahead
of executive pay interest. These women are not only important actors for the economy as a
whole, but crucial role models for future female leadership to thrive and build upon their
achievements. The need for these inspiring women is undoubtedly particularly great in the
financial sector.
Future financial jobs will be affected by disruption just as any other jobs will be. Especially
for women this means that a lot of the strategies that we have spent the last few generations
very consciously adopting will soon be hindering rather than helping our careers. Up until
this point, women, especially in the finance sector, have focused on adapting to the status
quo. Now we are suddenly faced with a business world where questioning and disrupting
the status quo is more highly valued than it used to be. Women have the opportunity now to
shape this new world and the new image of leadership. It is important that women
beginning their careers understand this new dynamic so that they can widen the paths that
the women before them have walked and make their own mark on this new reality.
Frankfurt, Germany
Colleen Moorehead
Toronto, Canada
Kristi Ross
Chicago, USA
Thomas Beattie
Vancouver, Canada
There are a finite number of business concepts in finance so they are frequently duplicated.
It is very hard to create great and unique experiences and that is what will separate success
and failure. Since women represent over half of the population and are increasingly major
consumers of financial services, it is essential that they be involved in the design, packaging
and usability of FinTech (financial technology: using software to provide financial services)
products.
As natural connectors women have substantial networks. Generally speaking, they consider
the implications of actions more carefully. Because social proof is a major contributor to
brand success, building communities is essential and we believe women will be influential
users of our unique collaborative stock trading platform.
Women are excellent communicators and their input and messages are integral to the future
success of the financial industry.
3.3
I always wished that I had started investing when I was much younger. But I didnt have the
encouragement, the technology, or the easy access to do so. Financial education is empowering
especially for women. So we want to spread the information for free to the masses and
provide content and visual technology as inspiration. This way we can help people that want
to manage their own money. Even if it is a small amount, it is the depth of knowledge they
gain just by doing. We want to pave the way for younger traders and make it easier to start
investing at any age.
Debra McLaughlin
If you think of consumers as a set of individuals with needs and interests, it can be shocking
how easy it becomes. Put this at the forefront of your strategy. This is about getting people
engaged and caring about what you have to offer to them.
Kyle McNamara
Executive Vice President & Co-Head Information Technology, Business Systems, Scotiabank
Toronto, Canada
As a bank, we all have a responsibility to help foster a gender inclusive culture and do our
part towards the removal of barriers. At Scotiabank we support and accommodate our
employees throughout their careers because we understand the value of hiring and retaining
the best people, whose skills and innovative thinking will contribute to our success.
Inclusion makes us stronger.
My most recent project was maximizing the return to CBC on their investment in the
Olympics. We needed to establish a better measurement and show that beyond just viewers
we had achieved engagement. Our research showed that 17% of people had no interest
whatsoever in the Olympics in fact their plan was to just try and survive it and watch as
little as possible. So we did more research and asked people what engaged them. They told us
it was stories about the people, history, venue and actual sports that make up the Olympic
Games. We took that knowledge and created content that addressed these interests.
At the end of the Games, the 17% of Canadians who resented the games had declined to 9%.
We connected consumer interests to the creative process and converted non viewers to viewers.
The Sochi Olympics were the most watched games in Canadian history surpassing even
Vancouver.
3.4
I had a degree in Industrial Psychology and so I knew how businesses worked from a consumer
and employee level. From there I went on to an MBA in Finance. I think leadership used to be
about understanding the dynamics of the business. But today you need to have that
understanding and you also need to know how to manifest the soft skills and get the best out
of people. Women at the top have more awareness around communication there is the need
to grasp not just what consumers will buy but also how they will react.
Toronto, Canada
We can go out of our way to encourage higher quality, more effective communication in the
workplace. Both men and women have similar goals when it comes to communicating but
they have different strategies. Men are more attuned to hierarchical structures and they
tend to focus on winners and losers. Women look horizontally not vertically and they tend
to be more inclusive of the opinions of others. There are consequences to the two different
strategies and this runs headlong into the culture of businesses. To date the entire sociology
of the business world has been male-dominated and the language of business has been the
language of men. The way forward is to encourage women to participate in conversations
and get comfortable with the idea of tooting their own horns. Let them know that it is okay
to talk about their own contributions! And we need to help men to build communities and
acknowledge the power of teams.
Wouldnt it be useful if Harvard and Rotman taught these communication skills in business
school? There are classes on Organizational Behaviour this strikes me as a natural place
to have these conversations. We will see big shifts in the success of women in business if we
get women to communicate more like men and men to communicate more like women.
We will all win.
I would like to ask a different question: what could the financial industry be doing to
ensure that women are more included? I dont know that women have been doing anything
wrong all along their contributions and mindset offer a unique perspective. And having
been a portfolio manager and in a position to hire analysts, I know that diversity of any
kind in your human resources portfolio is just as important as diversity of securities in your
investment portfolio. I have been arguing this for a long time.
3.5
Jason A. Voss
A lot of digital is still seen as being a painful transition, rather than being an opportunity
for companies and finance leaders to change the structure of business. In fact, in a moreand-more data-driven business world, there are probably more finance people that are
qualified to do marketing than there are qualified marketing people to lead digital
transformation! In the same way that math is the language of all science, shouldn't
finance be the language of all business?
Are smart women transforming all industries? Yes I think it is universal. For example,
we know that diversity on Boards leads to better performance. I have thought about why
I particularly admire a female Board member that I have worked with. She has capacity
and brilliance of course but her communication is even-keeled and non-threatening.
I like how she asks questions not for the sake of asking questions and not to set a trap
it is very much an exchange of ideas and understanding. Generally speaking, this seems
to be a female communication style, and I hope we will see more of this now, from men
and women.
My industry (traditional media), like others undergoing radical change, is still very much
focused on what we used to do even though we now do less and less of it, or at least how
we do it continues to change dramatically. In the old days, we could plan our worlds with
a long view of the status quo; we used to be able to write 20-30 year capital plans in the
newspaper business because that was the lifetime of a printing press. Infrastructure was
hard to replicate and provided the primary means of competitive advantage. Nonetheless,
there have been both advantageous and disadvantageous forces of change hitting us
aggressively for the last 20 years. While we have had to get used to dealing with constant
change, I worry about other industries not being ready at all for their forthcoming
disruption(s). But I see this as a major strategic opportunity, particularly for the finance
industry. Adaption to whatever is next will require a complete shift in thinking.
Toronto, Canada
3.6
Ali Rahnema
Follow movement:
behaviour drives financial outcomes
perspective.
Dilip Soman
Toronto, Canada
Lets talk about traditional finance. I like to refer to the term Econ first made popular
by Richard Thaler in the book Nudge. The Econ is a mythical creature that lives in
economics textbooks they are 100% rational, forward looking planners who are
unemotional and they are influenced by money and money alone. In my view, women come
closer to being Econs because of deep biological reasons when we all lived in caves, women
were the only ones who needed to plan anything. Men got to live just one day
at a time.
4.1
Since women are great planners by nature, they understand their own behavior better and the
behavior of the people around them. They can design context. These are the things that will
change the world of finance. Women are much better at understanding the psychology of
decision-making and have better empathy.
I am an engineer by training and my first job was in sales. We worked hard to improve the
engineering performance of our machines thinking that our customers would value that,
but no one cared. It was more about the experience and message that you gave. From there
I decided to study behavioral sciences because I realized that the best products are designed
for actual humans rather than for what we think humans are.
Author of: The Last Mile: Creating Social and Economic Value from Behavioral Insight
Mimmi K. Jendeby
Vice President, Senior Research Strategist - Center for Applied Research, StateStreet
Gothenburg, Sweden
We need a new type of investment industry. The levels of trust for this industry are very
low. To solve complex problems in the future, we have to start working actively with
implementing productive values that enable true learning. Its not about men versus
women; it is about diversity of minds. We can see from our research that women bring
a differentiated cognitive set of problem-solving capabilities that will be useful in the
transformation of our industry. Moving forward, the focus will be on truly caring about
your customer. If we embrace the wisdom of learning, the investment industry will flourish
in a different way and become sustainably successful for the long-term.
Istanbul, Turkey
By simply adding more women, you are bringing very different experiences, viewpoints
and relationships to diversify and enhance your decision making process. We have
experienced the benefits of having Turkeys first female PE partner (now there are two in
Turkey) and having the next generation of women partners as investment professionals.
The best part is that the benefits do not require special handling: just let the women settle
in and prove themselves. Give them room, space to operate, and stay out of their way.
As we move forward in the space time continuum, and experience the benefits of
technological advances, it is becoming obvious that there are only three resources that need
to be managed well for competitive advantage: people, money and time.
And money is a pass through commodity in this continuum, which may be lost or grown.
Time must be spent no matter what and is not recoverable or recyclable. People are shaped
and reshaped during the process.
If you break down each industry you end up in the same basic construct. And the finding
that money is the only resource that can be grown, recycled and reused for even better
results. In fact, we are all in the same business.
Women manage time well heck, they must. Since time is the only non-recoverable
resource in this process, having more women in your organization or firm, will again
result in better management of the resources. Thats probably why having a female board
member is the easiest way to identify outperformers in the stock market.
This view comes from our own experience and observations as a firm in the VC and PE
(private equity) business specifically. By being more than 85-90% male-dominated, this
sector has developed predictable game plans and ways to identify opportunities and
manage risks. Furthermore, deals have been managed through informal relationships and
circles, which are even more closed to women than the Investment Committee.
4.2
Memet Yazici
Ertunc Tumen
Istanbul, Turkey
First, as technology is shaping the new world, asset management companies will be required
to establish more direct, more emphatic and a more interactive form of relationship with
investors. As the digital revolution closes the gap between clients and asset managers, firms
will be turning to female finance professionals to lead the transformation to the next
generation of asset management.
Second, I believe that the lack of trust in financial service providers has something to do
with the male dominated culture in our industry. Womens risk savvy and financial securitycentered approach may help in rebuilding the lost trust.
4.3
And the final one is more of a duty; it is hard to claim that the world is a fair place in terms
of gender equality. Given the fact that the financial sector is the place where decisions are
made on where the money will be flowing into, having more women in the financial sector
should help to make the world a better place in terms of providing equal financial
opportunities to women.
As a senior professional working in the Turkish finance industry I see several exciting
opportunities for women who plan to work as finance professionals. Moreover, I think that
it is a young womens duty to society to be more involved in the financial sectors future.
Stockholm, Sweden
Financial knowledge is vital for all future jobs independent of what you are doing. As a
result of the massive shift towards a more diverse corporate culture, all companies will need
a mixture of characters and skill sets not only men, women and people of different origins.
There are two major initiatives that will support and accelerate equality in the workplace.
The first is a focus on getting female role models known across the larger female community.
The second is about convincing Boards, management, and the various government
organizations to act according to their stated values. If they say that on a voluntary basis
publicly listed companies should have a certain percentage of female representation then
they should live by the same standards within their own organizations.
Of course there will be new types of jobs as a result of technology but the jobs we have today
will not completely disappear. There will be a transformation the jobs we have today will
be more equally shared and as a result, we will have more women interested in pursuing
higher finance education such as the CFA designation or a Masters in Finance.
Henriette Kolb
Head Gender Secretariat, International Finance Corporation (part of World Bank Group)
Berkeley, USA
Terrance Odean
4.4
Women in emerging economies have increasingly more purchasing power and assets.
Their risk-mitigation needs are growing. By 2030, for example, the insurance industry is
expected to earn up to $1.7 trillion from women alone half of it in just 10 emerging
economies. Thats what we found in a ground-breaking study SheforShield, which we
conducted with AXA and Accenture. At IFC, we believe that women are an important
force for development as consumers, employees, leaders, and entrepreneurs.
Stella Dawson
Major corporations that choose to be leaders in areas like human rights, womens
advancement, will generally be more attractive investments for women. We need more
publicly traded companies to be better at issues such as human trafficking or labor rights
and to embrace full disclosure of their social impact in their reporting.
Rebecca Sykes
Toronto, Canada
A womans best attributes in the workplace are intelligence, efficiency and resourcefulness.
I have noticed during my time in the financial industry that women are really great at
getting the job done and dont take no for an answer. Almost all of the women I work with
have numerous balls in the air at any one time, and I actually think this works in their
favour. Through necessity, they are wonderful at prioritizing, great at optimizing their time
and really targeted in their approach to completing tasks there is no wheel spinning with
this bunch.
An overarching observation is that our industry is slimming down and there is a real focus
on output maximization employers are approaching hiring as if it were an investment and
asking questions like, will this hire give me a return on my investment (i.e. will this person
generate more than their cost to the company?) The requirements of new hires matched with
a 21st century business womans skills, leaves women very well positioned to thrive.
The future for women in business is exciting. There are so many opportunities for women
these days. It is going to be very interesting to take stock in 25 years time I think the
landscape will be significantly different.
4.5
The financial industry needs a huge redesign in terms of how they think about their
offerings; they need to incorporate financial planning from a womans perspective. For
example, women want to address their concerns over their life cycle, which is different from
that of men. Think about extreme old age we generally live longer than men, and are
more likely to be alone. How will I manage and finance my home health care? There are
exciting opportunities here that the World Bank, for instance, is exploring for an insurance
product, one that suspends premium payments during maternity leave. We need more
innovative thinking from a womans perspective.
I would love to do good but I also need to make a good return on my investments. What
if you offered me a choice between two opportunities with equivalent return potential but
one was more ethical than the other? Now Im interested.
Heaton Dyer
Your fundamental point that smart women are shaping the future of the financial
industry this thesis holds up well. Everything seems to be moving so quickly but it is
and it isnt. There are many aspects of the media space where consumer behaviour is moving
quickly but the business models arent keeping up. This is the nature of how the space has
changed and how it will continue to change.
We have business models that are primarily built based on traditional sources of revenue
and this has influenced our approach as to how we deal with business. To me it often seems
it has never been easier for content creation in the media except within legacy media
organizations. This is because our own legacy knowledge makes us far more conservative
than our younger competitors. They can and do act with a fearlessness we won't, giving new
companies access to different tools and lower costs of doing business.
These skills are critical to sustainability in the industry. The person who 20 years ago had a
great creative idea didnt have to think about much else. Today you have to understand how
to translate your great creative idea into business models that are appropriate for todays
media environment.
As it happens, my favorite three entrepreneurs are all women two of whom went back to
get MBAs after longtime careers in the media industry. I love the quote: "live life in
perpetual beta! 2
Full credit to the fact this quote has its origins in a 2012 short documentary from an American entrepreneur and film maker Melissa
Pierce, her film was called "life in perpetual beta".
4.6
The currency for success used to be a simple measurement audience ratings. Today the
currency has never been more complex from a financial point of view we struggle to find
unified forms of measurement across different platforms, screens and devices. We are heavily
set in our ways so when it comes to people who are succeeding, they are people who actually
grasp the concept of dynamic competitiveness, the financial environment and they have the
ability to look for new business models.
Toronto, Canada
These are great examples because they show that when women get involved in technology,
they doing so creatively, not passively. In the last five years, I think female consumers are
more comfortable sharing ideas online, participating in market places, and coming up
with business plans on their own, and I expect well see more examples of successful women
making waves in technology fields.
We need women to actively pursue careers in technology because there is such rapid growth
in the advanced IT industries and we cant afford to leave aside half the talent. In positive
news, computer science at Stanford is now the #1 major for women. Another big trend is
that women now spend more overall time on the internet than men according to some
estimates. In particular, women are often quite active on social media, forming a large
customer base for many emerging online platforms. Collectively, women's input via social
media is actually helping to shape the growth strategy of companies. A great example is a
company like Etsy: they offer custom-created arts and crafts and 80% of their customer
base is women, and 50% of their staff are women. Another is Pinterest estimated to have
more than 85% women as its users, and which is actually its own social media platform.
Or look at the Teachers Pay Teachers website, where women are both the largest consumers
and creators. This is a platform where teachers share materials and sell their own ideas.
Alexandria, USA
4.7
Greg Jennings
Ashvin Chhabra
With privatization, there comes a shift in the burden from the state or companies to the
individual this will affect the entire world of finance. The future is about know thyself.
The role of the sophisticated advisor will be less about finance and much more about having
the skills to assess complicated problems that people face and being able to translate them in
a cohesive way to a system of investing that makes sense for each individual.
There are certain skill sets that apply across every field. Do you have the right skill set to be
a high-level investment advisor? It isnt so much about finance. It is about having the ability
to relate to people, understand numbers, write well and design appropriate portfolios.
Women have been early adopters of my framework of connecting investing decisions with
goals and aspirations. Indeed women are particularly well-suited for the role of the
sophisticated advisor of the future.
Richard Lee
Toronto, Canada
We are seeing an increase in robo-advisors for now, but I wonder how long the pure online
model will last. We know millennials like to do research and routine purchases like
clothes and music online but when it comes to important matters like planning for
retirement they will turn to a real person.
In addition, patterns of work have shifted dramatically, with people moving between jobs
more frequently. Personal retirement planning is going to be more critical than ever
even though it seems a long way off for most millennials right now.
Robo-advice is only as good as the inputs and I cant see online tools replacing personal
relationships.
It is time to a) get clients and advisors on the same page, b) be willing to look at the deeper
meaning of what needs to be accomplished through investing, and c) make sensible decisions
on that basis.
5.1
Rather than focusing on markets we need to humanize financial advice. We need to explain
what investors can and cannot get from markets. Markets are anchored in disagreement so
your investment strategy must be based on differentiating between what you can and cannot
control.
The future of the investment industry will be about leveraging experience with effective tools
and technology developing a scalable platform that people trust and are willing to pay for.
Judy Goldring
Eva Trouin
Stockholm, Sweden
Nordnet is a tech company that offers financial services; we are not a financial company
that happens to have a website. Companies that provide financial services need to offer
their customers an experience. Robots and digitalization cant feel; so our emphasis is on
enhancing every single touchpoint with our customers. We call it VoG (Value over Google)
if you can Google something you will get the same result as everyone else and you are not
adding value to your customers experience. If you call us, we know that every minute of
your time is valuable so we want to make sure that we give you something extra!
The people we aim to hire are leaders not functional leaders, but leaders from another
perspective. They are first impression managers or customer engagement managers or
VoG leaders. We want to attract men and women who embody the right attitude and we
can train for skills. The customer wants to be in the drivers seat.
My life philosophy is be curious. If you are worried about asking questions in a public
forum, you can get creative and find a way to ask someone later. Putting yourself out there
can feel uncomfortable at first but like anything else you can develop this skill. I think the
way of the future will be more about how people work we know that women need to be
more adaptable to manage all parts of their lives. In the financial services industry, the
areas I see as a focus will be: 1) education (particularly millennials teaching the rest of us
how to get current!) as well as different forums for general investors to learn about finance;
2) mining big data with a real understanding of what to do with it the complexity will
continue and if you can figure out how to structure something financially you will make a
lot of money; and 3) there is room for what I call the unconventional advisor technology
is changing how we do everything in life, including investing.
5.2
Although my Dad was a financial guru, he didnt overtly teach us about money at
homebut I do I think he was a quiet, stoic mentor. From a young age I absorbed the
idea that there is a link between making money and actually working. My siblings and
I always had jobs whether it was snow shoveling or a paper route. I was willing to work
hard so that I could spend, but I also figured out that it was important to only spend what
you make. In university, I lived on a budget and I never put groceries on credit unless
I knew I could pay it off. The notion of money making money was also engrained in
me from an early age, so at 26, I put my first two paycheques directly into my RRSP
(registered retirement savings plan.)
Toronto, Canada
Augustin Huret
Maryland, USA
Selected for the Investment News inaugural list of 20 Women to Watch in the
financial advisory industry
The need for women advisors in the financial planning profession has never been greater
than it is today. Over the next two decades, as the demand for financial planning is
expected to increase significantly, there will be a huge exodus of predominantly male,
baby-boomer advisors, making way for a younger, more diverse body of professionals.
Firms within the financial planning profession are now waking up to the need for more
female leadership as a way to attract the diverse clientele they wish to serve, as well as the
key to creating a more productive and friendlier workplace.
For a young woman majoring in finance today, financial planning offers an attractive
and well-paid alternative to the usual tracks of investment banking or corporate finance.
It allows women to combine their financial training with their communication and
relationship skills to make a real difference in the lives of their clients. As a result, career
satisfaction is very high among those women who become certified as financial planners.
There is also the opportunity for entrepreneurial women to create their own practices to
focus on the financial issues that are of most interest to them, and to work with the types
of clients they most enjoy.
I was honored to be chosen for the list of 20 Women to Watch these women are showing
how, by remaining true to themselves and their own strengths, they have been able to
make an appreciable and lasting mark as women in the male-dominated advisory
profession. Most important of all, most of these women are known to one another
I know 11 of the 20 honorees personally and we enjoy the friendship and support of one
another, having recognized that we are all stronger as a result of our relationships.
Eleanor Blayney
5.3
In my view we need to see more women in the world of corporate finance. On the (too
rare) occasions that we work with a female CFO or equivalent they are not only successful
but they are very interesting because they have a talent for communication that men dont
have. This is a key differentiator. Men and women will see the same situation through
different lenses and it is better to blend perspectives. This provides an improved sense of
the corporate and financial risk of an overall portfolio. The skills required in corporate
finance are around developing contacts, building networks and being generally great with
people many women have this skillset.
Alexandria, USA
Paris, France
I was fortunately drawn into the world of metals trading at an early age and it was this
hands-on practical experience that made me interested in instead of afraid of finance.
Having financial knowledge really helped build my confidence and I was able to secure a
job, a mortgage, and a lifestyle. Im not afraid of dealing with anything to do with money.
5.4
It is important to have a personal understanding of how all of this applies to you and how
you can use this to achieve your goals. Successful investing will always come down to making
money and meeting your needs whether as an individual or as a business. There will be a
huge role for Generation Y to help the older demographic navigate changes in technology.
I am also hopeful that more women will come in to the financial industry and help to create
an improved environment, when the current uncertainty eases.
The whole financial world is in upheaval today. Anything that can be replicated is up for
grabs. But the enormous focus on the impact of big data and the internet on our lives will
settle down at some point.
Charlotte B. Beyer
Hamoon Ekhtiari
Director of Strategy & PMO for the Executive Vice President, Telus
Toronto, Canada
Ozlem Denizmen
Istanbul, Turkey
From early on in my life I knew that I wanted to be a social entrepreneur. I picked women
and money as my focus because women give back to society by investing in education,
nutrition and health. And men are extremely important in this equation too, because if
women are involved in economic matters this reduces the stress that is put on men.
I am passionate about the philosophical and psychological reasons for women to become
financially literate. I tell girls and women not to look for somebody else to take care of them.
Take care of your own money for you, for your family and for society.
Ultimately the heart wins when it comes to how we make decisions. I think the role of
women in finance is to help us to think deeper, feel more and build better organizations.
A big trend for the future is using finance as a powerful tool for good. Rather than the old
keeping up with the Jones, you need to ask yourself how you are defining success and who is
that success for? The field of Social Finance is gaining momentum. PwC recently appointed
a Chief Purpose Officer. A woman was appointed to this role and the role itself is an
example of what is possible. In 2016 there is the idea that purpose matters.
6.1
A significant number of jobs are being automated even industries that you thought were
well-protected. There are plenty of people who can do specialized work but to make an
impact in the future you will need to have judgement, insight and financial knowledge to
bridge the gap. For example, in the world of big data, having the ability to handle numbers
goes a long way. Not only for reporting but for investment management and for using
financial information to generate business insights. But this analytical work cant be done in
silos, we need to collaborate. The people who will succeed will be the integrators: those that
understand multiple specialties, how they impact each other and then are able to foster
communication between the various stakeholders.
I came from a world deep in numbers (CA/CPA) and my path has evolved from there.
This background has consistently given me an analytical ability beyond that of my peers.
No matter which industry you are in, as soon as you hit management you need to have
knowledge of finance. The broader your analytical toolset, the better the opportunity to
set yourself apart.
Sarah Saska
Toronto, Canada
Selma Prodanovic
Vienna, Austria
Having some core financial knowledge has been critical to my career as it has allowed me
to become bolder with my approach to finance. It is important to me that the way I earn
money and build my career is also in line with my values. For me, money and meaning
cannot be separated. Gender-lens investing incorporates gender as a dimension in finance;
it allows me to bridge my financial understanding, as well as my value system.
6.2
For me, being financially literate means independence. I don't feel rushed to get married or
to be in a partnership due to financial need. I will do those things because I choose to, but
not out of financial obligation. Being financially literate also means that I can travel and
experience life in the ways that I want to now, and over the next twenty years; I don't need
to wait until retirement for those types of experiences.
I have discovered that although academic financial education has deep value, it's also
important to acquire practical financial knowledge, especially for women. I was fortunate
enough to have learned about the stock market from close friends who work in investment
banking. They've taught me to play the market and expand my portfolio. This has given me
a distinct type of knowledge and it has opened up my way of thinking. I now look at more
intricate real estate deals, and I shop for five year investment returns. My girlfriends are all
highly educated professionals, but I am the only one trading stocks; I want them to learn to
invest so they can create long-term security, and also so that they feel financially empowered.
Julie Bristow
Toronto, Canada
Award: 2011 Crystal Award for Creative Excellence (Women In Film and Television)
I am a late bloomer, a reverse entrepreneur. I had a summer job with investment banking
firm Gordon Capital Corporation: I was really intrigued but am thankful that one of the
men I worked with suggested that I might be better-suited to be a writer. Then for years
I had a corporate position as a senior executive at the Canadian Broadcasting Corporation.
Vicki Saunders
Founder, SheEO
Toronto, Canada
6.3
I think it is particularly hard for women to get access to capital. In fact Id like to have a
secondary business one day that supports women who want to do startup ventures. I like the
idea of funding female media entrepreneurs. Money is so critical to success yet asking for
it is so difficult.
When I decided to go into business for myself, I was fortunate enough to get a significant
project with CBC as a starting client, but I suddenly needed to raise capital. And even
though I had managed a $25-60 million portfolio while at the CBC, no one wanted to
give me money!
Assaf Weisz
Toronto, Canada
In 2014 Assaf won the FPK (Future Possibilities for Kids) Possibilities Thinker Award
There is a generational change happening and the new narrative revolves around how
we now view money as an expression of values. We are moving to an era where we must
leverage 100% of our assets, our resources and our time to fulfill this broad theory of
change and we must design services around it.
6.4
Because women and millennials dont see their wealth and values as being distinct and
separate, there has to be a level of emotional intelligence working with these clients in the
future. As a result, one of the breakthroughs that will accelerate this transition will be
impact measurement reporting to clients not just on financial outcomes, but also on the
real world impact of their investments. When we interview candidates for jobs in impact
investing, we look for a background in financial services and management consulting but
also for a high level of people skills.
There will be a huge transfer of wealth to millennials (born between 1980 and 1999)
in the next two decades and this will require a shift in both advice and services, and that
shift needs to unfold in a very personalized way. A recent report by US Trust found twothirds of millennials see their investments as an extension of their personal values.
Corrie Shanahan
The future is all about entrepreneurship because women are more likely to set up their
own businesses they will either operate businesses within larger organizations or set up
their own shop and offer specialty expertise. This new way of working is very empowering
and fulfilling for women. I started my own firm at the beginning of 2015 and I love what
I do now in a way that I didnt know existed when I worked inside a corporation. It is so
much fun and so rewarding being your own boss and running your own business! On the
personal level, there is no limit on what you can accomplish. And on the more practical
level, there is no limit on what you can earn.
I think that one of my most important roles as a father is to help my (now) 12 year-old
daughter acquire the best skills for her mature life, and allow her to fulfill her full
potential. Since she was little, I have exposed her to technology and science, but not just as
a technology user (as almost everybody does), but rather by explaining to her how things
really work. For example, when we Google Being an Engineer I tell her what happens
behind the scenes as she types her query, how data travels from her computer to Googles
data centre in California, where it is being processed by super-fast computers, and is then
sent back from the other side of the world to her iPad. There is so much magic around
everything technological that we touch in our everyday lives, but most people just ignore it
and take it for granted. My wife, who is a chemist, also teaches our daughter about science,
and they even do experiments at home! As a family we like to talk about science and
technology, and find it so much more interesting than talking about singers and TV shows.
As we make science and technology part of our everyday life, it shouldnt come as a surprise
that Sapir becomes more and more comfortable with it, and even more curious. When she
asks about something we do not know, we look it up together on Wikipedia or Google,
even during dinner, and talk about it a lot. My inspiration for this type of parenthood
came from the movie Contact, that is based on a story by Carl Sagan. It really moved me
to see how the daughter (played by Jodie Foster) of a scientist dedicated her life to complete
the scientific work of her father.
From the time she was three years old, I have taught my daughter Sapir about the sneaky
nature of the relationship between time and money. What is interest? How can it work for
you, and how can it easily work against you? She asked for something a bit expensive, and
instead of saying no, I offered a deal: take the money and you can spend it right now; or
you can save it and get more later. She chose the second option, and she still tells this story
with pride. This is about getting her interested that it is fun to learn about money or
anything else.
6.5
Odi Dahan
Commentary
Will that approach work some of the time? Almost certainly yes, but it is interesting that so
few are trying the distributed innovation strategy. But let us look at a market that is entirely
different from finance, to make sure that both approaches are being considered.
About a decade ago, the smartphone market was much smaller (both in units and dollars) than
it is today, but it was growing fast and already worth billions of dollars. At that time, almost all
smartphones were bought by men: it was widely believed that women just werent interested
in these devices. In fact smartphones were largely marketed by citing how many GHz the
processor ran at, or whether it supported HSPA+. Many were worn in a holster at the belt.
There were some cluster-type attempts to create a smartphone for women from some device
manufacturers: dedicated groups were formed, and they introduced a product targeted at the
needs of women. It wont surprise anyone to hear that this mainly involved creating a pink case,
or perhaps some sparkles. Here is a real example from 2011: Released early in May, the hot-pink
Nokia N8 comes with an ELLE fashion magazine app and the option to install a Little Pink
Diva Theme for adding some colour into your menus and a great Pink Neon Clock.
Well, thats one approach.
Meanwhile, another smartphone company (with a male CEO, CFO, and with a male chief
designer) made a different kind of smartphone. Processor speed was not a selling point,
iv
Commentary
management firms, financial literacy advocacy groups, CFA Societies) have realized that
instead elegance of design, ease of use, ability to share, and the ability to fit into a pocket
(or purse?) were big features. As of 2015, that brand of smartphone is now the most popular
phone in Canada, with 34% market share. It isnt pink, has no sparkles, and was NEVER
intentionally crafted as a phone for women.
Did you know that iPhone owners are 64% women and only 36% men? Not only that, but
while less than a quarter of those over 45 have an Apple phone, half of 18-24 year olds do?
In other words a phone that was not created by a team targeting a special product aimed
at the female market: ended up appealing to women 2:1 and, is overwhelmingly popular with
desirable demographics such as millennials and high income earners. Not to mention, the
Apple smartphone is responsible for 94% of all smartphone profits worldwide, and heavily
contributes to making Apple the most highly valued company in 2015, and in history.
painting one branch pink, but instead tried think different across the entire organization?
Conclusion
After this years research, what do we know?
Well, we now know that finance is the language of all business. And we already knew that
more women = more money.
So putting it all together, I predict that the financial industry will begin to encourage and
embrace the feminine style of communication; including real-life stories, nuance, and feeling.
That may not appeal to 100% of women, but it is likely to be welcomed by the majority.
Interestingly, it is also likely to be more useful in reaching men especially those who are
turned off by traditional forms of financial marketing. Further, new communication styles
may be more effective in connecting with non-Western cultures, and those under 35 (of both
genders) who already tend to think and speak in gender-neutral ways.
Thanks to the influence of smart women, we are rapidly moving towards a more interesting,
more inclusive and more profitable financial industry. An industry that now has a much
broader scope with infinite possibilities.
Makes you wonder what would happen to a financial service firm that didnt settle for
60% of those making more than C$150,000 per year own this device.
Research findings are based on selected quotes from the (on average) hour long
interviews. Quotes were prepared by the author and permission to use the quote was
granted by the interviewees.
Acknowledgements
Six years of Rich Thinking! What a privilege it is to spend time with some of the smartest
people around the globe. I cant even begin to explain the profound impact that these
discussions have had on the way I look at and live my own life. And the best part? Having
the opportunity to share this collective intelligence and make a real-world impact.
Thank you, thank you, thank you to:
All of the men and women that I have interviewed - for your trust, for your time, for your
enthusiasm and for your contribution to this work. And for all of your generous
introductions.
Everyone who has supported this research by inviting me to speak at various industry
and corporate events.
All of my friendly media contacts around the world for encouraging me to just be me.
My partners at Cumberland Private Wealth Management for believing in my idea.
My designer Tiit Telmet, Telmet Design Associates for creating such a beautiful document.
My photographer Yuri Dojc, www.yuridojc.com, for capturing my spirit.
My love Duncan Stewart for radiating positive energy and inspiring me every single day.
The broad question of How do you see that smart women are shaping the future of
the financial industry? is clearly open-ended and it solicited diversity in thoughts,
ideas and predictions.
vi
Throughout 2015, the author conducted 60 interviews with male and female global
leaders. The selection criteria were not scientific or random, but based more on
serendipity via chains of introductions. Interviewees varied by age, cultural
background, profession and geographic location, and all were considered to be experts
in their fields.
Methodology
References
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Odean, Terrance - "Volume, Volatility, Price, and Profit When All Traders Are Above Average,"
Journal of Finance, Vol. LIII, No. 6, December 1998, 1887-1934.
Odean, Terrance and Barber, Brad - "Boys will be Boys: Gender, Overconfidence, and Common
Stock Investment", Quarterly Journal of Economics, February 2001, Vol. 116, No. 1, 261-292.
Ridgeway, Cecilia and Correll, Shelley J. Unpacking the Gender System: A Theoretical Perspective
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Shandilya, Nidhi V. and Duncan, Suzanne Addressing Gender Folklore, StateStreet Center
for Applied Research, 2015.
Soman, Dilop - The Last Mile: Creating Social and Economic Value from Behavioral Insight,
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SelectBooks, Inc., 2010.
Chhabra, Ashvin B. The Aspirational Investor: Taming the Markets to Achieve Your Lifes Goals,
Harper Collins, 2015.
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References