Nearly half of South African households (42,1%) are headed by women, according to Statistics SA’s 2022 census. In these households, women are often both primary caregivers and breadwinners. They wield significant influence in household purchasing decisions and are pivotal in passing down knowledge on how to handle finances to future generations. Despite this role, studies show they often lean towards saving rather than investing, particularly when lacking confidence and resources for long-term investing.
Standard Bank’s data underscores this trend, showing that only 32% of its Online Share Trading customer base are women. Furthermore, the data shows that many women open their first trading account with Standard Bank after the age of 40, while male clients first opened their accounts before turning 40.
However, this picture is starting to change as institutions like Standard Bank are developing tools and platforms to help women learn more about investing and develop their confidence.
“What’s encouraging when we look at more recent data is that the average age of our first-time Online Share Trading account holders is getting younger due to female youth becoming more confident in investing,” says Standard Bank’s Global Markets Head of Retail Investments, Nivedna Maharaj.
She also points out that female representation is even better when looking at Standard Bank’s currency trading platform, Shyft, where 38% of accounts are held by female clients.
Maharaj, says that while in the past, many expressed self-doubt when it comes to investing, today’s women are becoming increasingly knowledgeable about investing and consider investing an essential part of building wealth or saving towards retirement.
“As more women’s disposable income increases, we are starting to see the trading gap narrow too. More women are finding the confidence to invest in the stock market,” she adds.
Maharaj attributes this increase to improved access to information and believes that showcasing the investment and trading successes of other women will inspire even more females to engage with financial assets.
In line with this belief, Standard Bank introduced the INVEST IN HER series in 2024 to showcase women excelling in share trading and investments. This initiative provides role models for aspiring female investors and fosters a supportive community, demonstrating that investing is accessible to everyone, regardless of gender.
To celebrate Women’s Month, the series will host its inaugural in-person event, featuring renowned Stock Market Analyst, Moxima Gama. This event aims to unite women from diverse backgrounds, creating a vibrant space for connection and empowerment.
“It is a big mission of ours to bring more women into this space because women will stretch each rand of their returns much further. Research shows women tend to prioritize others’ basic needs, making their participation in trading potentially more beneficial for society,” says Maharaj.
To encourage more female participation, Standard Bank has developed online share trading platforms that make it easy for new investors to get started. Standard Bank’s AutoShare Invest, accessible through the Banking App, gives investors simple access to local markets. Investors looking for international exposure can access global investment markets through Shyft and leverage educational content through its blog. Shyft is available as an independent mobile App or can be accessed through the Standard Bank Banking App.
But before accessing these platforms, Maharaj says it is crucial that investors set clear, SMART goals. These are ‘Specific, Measurable, Achievable, Relevant, and Time-bound’ objectives for each investment, such as saving for a house or retirement. Once the goal is clear, they can then execute on their investment strategy using an online trading platform that aligns with those goals.
Seasoned traders can access more than 250 JSE listed Shares and Exchange Traded Funds (ETFs) futures contracts, contract for difference (CFD), warrants and forex investments through Online Share Trading or Webtrader.
“These initiatives reflect our broader commitment to dismantling barriers and creating inclusive trading opportunities for women, whether they are new to investing or seasoned investors,” says Maharaj.
She adds that Standard Bank’s insights underscore the need to increase women’s engagement in trading and investment activities through access to platforms tailored for various investor levels and supportive initiatives. Despite the current underrepresentation in active trading accounts, Maharaj is encouraged by the growing interest and willingness among women to learn and participate in trading.