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IPFS News Link • Business/ Commerce

Ignoring Women Costs Financial Industry $700 Billion a Year? Mish Calls "Bull$hit"

• by Mike Shedlock

Please consider an article by Emily Cadman, on Bloomberg, Ignoring Women Costs the Financial Industry $700 Billion a Year.

The male-dominated finance industry is missing out on more than $700 billion a year in revenue by failing to listen to or tailor products for women, according to management consultancy Oliver Wyman.

"Women are arguably the single largest under-served group of customers in financial services," Jessica Clempner, the report's lead author, said in a statement Tuesday. "Firms are leaving money on the table by not listening to and understanding their women customers."

No Link to Study

The article did not post a link to the study. Bloomberg seldom does. This makes it hard to see what the report really said or how.

Only Two Costs Cited

There are the only two cost examples mentioned in the article.

If insurers sold life policies to women at the same rate as to men, they could generate $500 million in new premiums, Oliver Wyman estimated.

Women also tend to hold more of their assets in cash rather than stocks and bonds, costing wealth and asset managers a potential $25 billion in fees.

The Math

Assuming those numbers are accurate, they total $25.5 billion a year.

Where the hell is the other $674.5 billion?