Incoming: The feminisation of the economy

The growth of Sephora, the emergence of thousands of successful fashion labels, the skyrocketing fame of reality television series stars like those on Love Island and those in the Bravo sphere, and the takeover of true crime docuseries and podcasts. As we look at the consumer market today, all these booming products are driven by a common theme that makes it historically unprecedented—the female dollar. Some estimates predict that by 2030, women will control over half of global wealth. Women’s wealth growth is outpacing the growth of the market itself. Female-focused enjoyment is the new safe investment. We can attribute it to financial and social independence, yes, however, there is also a silent contributor that many couldn’t see coming. The great wealth transfer is set to upend the financial landscape completely, argued to be the most significant generational wealth transfer in human history*. It means that as the Boomer generation passes, their wealth is set to be inherited by millennials, many of whom are women, working, and are more educated than their predecessors. In the UK alone, the CEBR predicts that women will oversee 60% of the nation’s wealth by the end of this year. This means that the face of wealth management shifts from a male client focus on how to make more money point blank, to a female client-driven focus of ‘what is the purpose of putting my money here?’. This is because women often have longer-term priorities in financial planning, such as preserving wealth and a particular interest in philanthropy. Take a seat, finance bro, time for the finance ladies! Does this mean a long-awaited end to the Patagonia vest? Not necessarily, as of the C-suite level (top-level execs, e.g., CEO, COO, etc.) in financial services, women represent less than 20% of professionals. However, this is expected to experience steady growth. Therefore, the role of women in finance, or at least an understanding of the female perspective, is becoming increasingly invaluable. Focusing on the needs of women will be essential for businesses to position themselves positively for the future. From a political perspective, the idea that our rights and freedoms are being eroded needs only to wait until this transfer continues to take effect. With the growth of female-driven financial power, female political power will subsequently grow. The female lobby can only become more powerful. A vision of a rainbow is on the horizon of this currently volatile and polarising political landscape. And what does this mean for toxic masculinity in the future? Notoriously, the finance industry is a hub for male ego-building, and rumour has it that they invented the concept of an inappropriate workplace environment. The rise of the female dollar and its influence can only bring a feminisation of the economy, and thus the financial services industry. Where money is spent, how these assets are invested, and the impact on female empowerment, as well as the influence on the way the industry operates, as professionals vie for clients who will mostly be women. Only time will tell the extent to which toxic masculinity will deteriorate, but I can’t promise Chad from hedge funds will be safe.