In a world with few universal truths, one remains unchallenged: Men and women are irretrievably different.
That is especially true when it comes to their financial lives. Most financial institutions would agree that their female customers have different needs than their male counterparts. The only question has been how to address those differences.
The answer, according to some banks and credit unions, is viva la difference. Organizations including Key Bank, Meriwest Credit Union and California Coast Credit Union have developed what they consider female-friendly programs with the goal of educating, enlightening and empowering women and their money.
Among the most financially powerful women around are those over the age of 50, according to demographers, generational experts and the like. Those in the Baby Boom generation tend to have the most disposable income – and the biggest monetary headaches to go along with it.
“Women age 50 plus constitute a market force to be reckoned with,” said Marti Barletta, founder and CEO of consulting think tank The TrendSight Group and author of “PrimeTime Women: How to Win the Hearts, Minds and Business of Boomer Big Spenders.”
“These women are in their prime -- this is the healthiest, wealthiest, most influential generation of women in history,” Barletta said. “These women should be the primary marketing target for a host of industries, including travel, autos, real estate, financial services, technology and home improvement.”
Consider these statistics:
- Women spend more than 12 years out of the workforce compared to less than 11 months for men, which affects their pensions and other benefits, according to BusinessWeek.
- The average age of widowhood is 56 years old, making it extremely likely that a woman will need to manage her finances alone, Bank Investment Marketing said.
- Nearly 75 percent of women are single when they pass away, the Philadelphia Inquirer reported.
These data points are one of the main reasons California Coast Credit Union has targeted women in its financial literacy workshops, said Kimberly Bianco, the credit union’s Public & Media Relations Manager.
California Coast usually holds about 10 of these workshops annually, Bianco said. The first in its recent “Brown Bag” series was called “A Woman’s Journey to Financial Independence.” About 45 women attended the no-cost event at the credit union’s headquarters (along with two men, Bianco noted.)
A local professional from the Hartford Investors Group led the discussion, which touched on topics such as the unique financial challenges women face, preparing yourself for financial independence, stretching your money while trying to eliminate debt and preparing for retirement.
“It was very well received,” Bianco said, and there are plans to hold similar seminars in the future thanks to its success.
At Meriwest Credit Union, the challenge the management team had was to develop female-friendly programs without becoming too gender specific, said Gregory B. Meyer, community relations manager for the San Jose-based credit union.
Meriwest prefers to remain neutral to gender when it comes to its overall services, advertising and the like, Meyer said. But it has developed relationships with area agencies and organizations that focus on women and key issues.
For example, Meriwest reached out to a nearby group called the Women’s Initiative for Self Employment or WISE. Meriwest presents its Credit Myths workshop to WISE members in both English and Spanish. The credit union also serves as the “go to” organization for WISE clients who need specific personal credit counseling, Meyer said.
“As a result of this work, we have seen an increase in memberships from clients of this organization,” Meyer said. “The women in the WISE program are entrepreneurs in training and will eventually need a business checking account, credit cards, and business lines of credit. We are uniquely positioned to support their members.”
Additionally, Meriwest is the financial educator for the Georgia Travis Center, which supports homeless women and their families.
“On a monthly basis, we go to the center and meet with their new intakes to discuss their personal financial issues and suggest solutions for them. We open memberships for women who need to have an account in order to receive their regular public assistance payment,” Meyer said.
At KeyBank, the financial institution’s long-term focus is on women entrepreneurs, explained Marylee A. Gotch, vice president/Public Affairs Manager for the Cleveland-based bank.
It developed Key4Women, a program dedicated to helping female business owners reach success, nearly 10 years ago, Gotch said. It is a free program for women who bank with Key, and membership is quick and easy because it is done online.
The program offers women greater access to capital with the Key pledging to lend at least $3 billion to qualified women-owned firms by 2012, Gotch said. (Between January 2005 and April 2009, KeyBank lent more than $3 billion to women business owners).
The program also has customized service. There are Key4Women Champions in every bank district who focus and support women-owned businesses. Each district holds regular networking events for its area business owners as well.
Finally, the program focuses on ongoing education, giving women a variety of online resources and educational events aimed at small businesses topics, Gotch said.
