Women are creating and inheriting a growing share of global wealth but are still underrepresented at senior leadership level in the financial services sector, according to a report from Citi Private Bank.

It noted that women were leading a “wealth transformation” through the foundation of ‘exciting’ businesses, their work as corporate executives, and as investors with fresh perspectives.

Furthermore, there was an “unprecedented” wealth transfer underway between Baby Boomers and younger generations, which could amount to $100trn over the next decade.

As a result, women were likely to control a greater share of wealth than ever, bringing about a more equitable and prosperous society, the report stated.

However, Citi said that as men have until recently always controlled the lion’s share of wealth, the financial services industry had previously focused its attention on them, and women’s needs had not been fully addressed by product and service offerings.

Furthermore, women had traditionally been underrepresented at senior leadership level within the sector, and while progress in closing the gap had been made, this still remained the case.

Citi also highlighted that, despite their growing importance as wealth creators and owners, women were “not always confident” when it came to the pillars of financial wellness.

The bank defined these pillars for ultra-high net worth individuals (UHNWI) as: Financial literacy, comprehensive wealth planning, long-term investing, and strategic borrowing.

“Studies frequently attest to this deficit of confidence, particularly regarding financial literacy,” the report noted.

“We know from our daily conversations with women clients and prospects that these findings are applicable to the ultra-high net worth community as they are to the wider population.

“As with people of other genders, women’s ability to generate wealth is often distinct from their ability to manage personal finances effectively. Entrepreneurs and professionals typically put in long hours to grow their businesses or careers.

“As such, they may have little time and energy for learning about and tending their personal finances, especially given other commitments such as family and social activities.”

However, the report also recognised that there were additional, deep-seated factors why women may lack confidence in financial matters, such as the wage gap and not having the same degree of access to financial services.

“At Citi Private Bank, we recognise that women often have a distinctive set of priorities when it comes to their finances,” it continued.

“Key elements include more interest in sustainability and even greater emphasis on planning for and nurturing the next generation of wealth owners. The same is true of their overall approach.”

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