With more women in the region not only entering the workforce but also achieving senior positions, the sky’s the limit when it comes to a woman’s earning potential. Which is why some banks now offer ladies-only banking solutions that cater exclusively to women’s needs.
Rather than the traditional ladies’ options ,such as separate queues or even areas that respect women’s privacy, ladies’ banking has gone a step further. Now banks are creating specific products and services specifically for women.
But why the growing interest in women’s retail banking? Well, according to figures from the United Nations, in two-thirds of Middle Eastern countries there are more women than men in university. How many of those utilize their higher education and actually enter the workforce is another matter.
Financial independence
In Lebanon, 54 percent of university students are women, but they only make up 26 percent of the workforce. In Qatar, the figures are more alarming: women make up 63 percent of the student population, yet only 12 percent of the labour force.
However, with such high female student populations, the number of women in the labor market should increase. And there is a motivation for it to do so. According to a 2012 survey from Bayt.com, 57 percent of the region’s working women cited financial independence as the key driver to start work.
With an estimated US $385 million assets controlled by women in the Middle East, it makes sense for banks to cater products to women.
In the UAE, there are a handful of accounts for women that come with special personal finance rates or shopping discounts. However, with such a large expatriate population, this service is generally found in Islamic banks. Often women will only notice they have been treated differently by the color of their debit card – which might be pink – rather than a bank’s standard colors.
‘More than men in skirts’
In Saudi Arabia, however, the concept is much more popular. The sovereign nation offers a variety of ladies’ accounts and, while these tailored products don’t necessarily come with added extras, it generally means that women can go into a ladies-only branch, be served by an all-female staff and have access to a female relationship manager.
Saudi women can also opt for credit cards created just for them. Several Saudi banks offer credit cards as a standalone product and they do come with rewards such as shopping discounts, free access to airport lounges and instant SMS notification for every transaction. However, they often come with minimum salary requirements and annual fees – something plenty of conventional accounts, that don’t come with a ‘ladies’ tag, do not demand.
Assuming that women simply want to shop or dine out more may not be enough if the banks really want to capitalize on this growing segment. With women’s wealth increasing all the time, they need to be treated as more than men in skirts, with thought-out concepts that truly address their investment and their lifestyle needs.
At the moment, it seems that ladies’ retail banking is more about attracting a new client base than offering the best deal on the market. So, if you are unsure about committing to the concept, then compare all bank account options to ensure you are happy with what is on offer.
Instead, women need to make it clear to the banking industry what they really want. Yes, women like shopping discounts and, perhaps, to have a debit card that’s pink. And, yes, some of them may also like to bank in a branch staffed by women. But they also like to invest wisely and talk to a relationship manager who can really help them maximize their wealth. It’s certainly something to think about.