The purpose of this term paper is to show why women are an attractive target group for the German financial services industry, and if banks should introduce Lady Banking as a new marketing concept for this target group. Up to now, the majority of the financial service providers have focused on many different target groups, for instance, senior citizens, young people and entrepreneurs. Only few banks, however, like the Stadtsparkasse Augsburg and the Sparkasse Heidelberg, have introduced Lady Banking as well. First, I will describe the social development in Germany in the last decades. Next, the economic significance of the target group women will be emphasized. Subsequently, some differences between women and men concerning their financial behaviour will be presented, and after that, the consequences of the target group women for banks will be shown. Finally, a conclusion will give an overview of the present situation and the future prospects of Lady Banking in the financial services industry.
In recent years, a social development has taken place in Germany. Until 1953, the husband decided about his wife’s assets, and he had the right to forbid his wife to take up an employment until 1958. Due to the women’s movement, women have become more self-confident and independent. Modern women have got a far better access to education than they had a few years ago. In 1960, only 35.8 per cent of the candidates for the school-leaving exam were female. This share rose to 52.6 per cent by 2004. In that year, more women than men studied at university for the first time. The number of female employees has grown to 41.7 per cent due to Germany’s reunification and the extension of part-time-jobs. Moreover, the traditional family structure gave way to diverse modern forms, affecting women’s lifestyles significantly: patchwork families, single parents, dual-earner families, the birth rate decline and the increase in the divorce rate did not leave women untouched. While women used to get married at a young age, raising the children while the husband was the breadwinner, modern society allows for more flexible lifestyles that are easily subject to change. To summarise, the social development of the last decades has had a major effect on a woman’s way of life.
The female gender plays a significant role for the whole of Germany’s economy. Women make 80 per cent of all consumer buying decisions and just over 70 per cent of them manage the budget of the household. They buy 60 per cent of all cars and own 40 per cent of all shares. Nevertheless, women’s salaries are on average 20 per cent below those of men. Not only due to part-time jobs, but also when working in the same positions. Therefore they save on average 160 euro per month and thus 80 euro less than men for their old-age pension scheme. These are the main reasons why they get on average only half the pension that men get. Furthermore, women have a higher life expectancy than men. They live on average 82 years, and men become only 77 years old. Considering the medical progress, these numbers are expected to rise by nine years. To sum up, the majority of the purchasing decision-makers will live longer with less income, which will seriously affect Germany’s economy.
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- Quote paper
- Birgit Herrmann (Author), 2011, Lady Banking. Women as Target Group for Financial Services, Munich, GRIN Verlag, https://www.grin.com/document/179761