TISA Holds Inclusive Investing Marketing Roundtable with Industry Leaders
Yesterday,The Investing and Saving Alliance (TISA), in association with Schroders, hosted a roundtable to discuss how the marketing of ISA products could be improved to make investing more inclusive.
Building on the work already being conducted by TISA, the roundtable brought together senior industry marketing professionals and those responsible for Corporate Social Responsibility (CSR), to discuss best practices in developing marketing that better takes account of potential female investors; the barriers to reaching wider audiences effectively; and changes needed within the industry to promote greater equity, diversity, and inclusion. Disparities in gender and wealth are an oft-talked about issue but nevertheless continue to persist. TISA is adding its voice to call for change in this important area.
Speakers included:
- Carol Knight and Faith Reynolds from TISA
- Gillian Hepburn from Schroders
- Jessie Davidson from Oxera
- Holly Mackay from Boring Money
Last year, TISA’s research with Oxera revealed that over 70% of people with cash savings of over £5,000 do not even consider investing in Stocks and Shares (S&S) ISAs. This includes over a quarter of those people who have savings horizons of over 5 years. The work also found that women, people who live outside of London, and those from lower socio-demographic segments are less likely to invest (this is even after controlling for income).
Jessie Davidson, Analyst at Oxera, said: ‘Our research shows that 70% of consumers without a Stocks and Shares ISA had never considered investing in one, that most consumers vastly overestimate the probability of losing money in a Stocks and Shares ISA and that peer effects play a significant role in investment decisions. Women, who are 8% less likely than men to invest, are both more likely to overestimate the probability of losing money in a Stocks and Shares ISA than men, and less likely to think that ‘people like them’ invest.’
To remedy this issue, with the help of industry, TISA and Schroders have begun work to develop an unbranded marketing video targeting millennial and Gen-Y women who live outside of London. The aim of the video is to demonstrate more inclusive marketing. It is part of a programme of work showing how a shift in language, marketing and communication techniques can help to increase consideration of S&S ISAs among groups often missing out on products available to them.
More information on the work TISA is doing in this area can be found here: https://www.tisa.uk.com/inclusiveinvesting/
Carol Knight, CEO of TISA, said: “The Gender and socio-economic divide in finance is well known. However, the research we conducted with Oxera makes clear that if savers, especially women and those outside of London, are to avoid having their savings eroded by inflation, then more need, at the very least, to consider opening Stocks and Shares ISAs.”
Gillian Hepburn, Head of UK Intermediary Solutions, added: “Inclusivity and equality for women is multi-faceted but investing is often overlooked. Living longer, taking breaks to care for family or moving to part-time work impact pension benefits, and coupled with navigating a gender pay gap means that women need to make their money work harder for them.
“Progress continues on many fronts, and as an asset manager which fully supports inclusivity in the workplace, we believe that this should also apply to investors. Schroders are therefore delighted to support TISA to encourage more women to invest, increase their returns and create a savings and investment market accessible to everyone.”
Holly Mackay, Founder and CEO at Boring Money, said: “We’ve been talking about this for too long, with very little progress being made. The Gender Investment Gap in the UK is the same size as the GDP of Switzerland: it’s shockingly large.
A lack of trust and confidence are key contributors and we need to re-think products and communications to help encourage more people who don’t think that investing is for them. Ultimately, this persistent problem needs more focus and money than it’s currently getting, if we are to unlock the savings of the disengaged.”
Faith Reynolds, Adviser to the Board at TISA, also commented: “This roundtable and the work TISA has already done is the start of a journey to raise awareness of the issues among TISA members. But more needs to be done both on the inside within firms to create a workforce that’s fit for the future and externally, as businesses shape their communications to engage with wider audiences. Making sure that people outside of London see S&S ISA investing as an option for ‘people like them’ is vital for levelling up and improving the outcomes of savers in the UK.”