Wo­men In­vest

At Arion we have been engaged in a major social initiative called Women Invest for more than two years now. The main objectives have always been clear: to increase the number of women who participate in investing, enhance women's financial literacy through engaging educational content, and support women in achieving financial independence.

A significant wealth gap between men and women

The idea for the initiative was born around three years ago when we began analyzing our data on gender distribution in the financial market. The findings revealed a significant disparity in wealth accumulation between men and women. This did not come as a surprise to us, particularly in light of the persistent gender pay gap, with the situation in Iceland being comparable to what we see in our neighbouring countries.

While Icelanders rank among the leaders in gender equality, when it comes to the financial position of men and women, we are in virtually the same position as our peer nations. And we simply thought: if we are a leading force in advancing gender equality, surely we can also become a role model when it comes to financial equality between women and men.

The financial independence of women matters

Women, no less than men, need to invest and build their wealth in order to achieve financial independence. Financial independence gives people greater freedom to make important decisions about their lives and careers and to shape their future. When more people have the opportunity to accumulate assets and participate in investing, the result is a more diverse, resilient, and equitable society.

However, investing is not solely about returns, financial goals, and independence. It also involves participation in business, innovation, and the companies that will shape society and the economy in the future. When more people take part, a broader range of perspectives is represented and society becomes stronger.

More than 10,000 women have attended the initiative’s educational events

For that reason, it is particularly pleasing that the Women Invest initiative, which was always intended as a long-term effort, has gone from strength to strength during its first two years and is already yielding tangible results. More than 10,000 women across Iceland have attended Arion’s educational events on investing, running a business, and personal finance.

Nearly every event has been at full capacity, and the reception has exceeded our most optimistic expectations.

A 50% increase in the number of women investing in our funds

We are seeing that this increased education and discussion have translated into changes in women's financial behaviour. More women now have a regular savings plan, invest, and take an active role in discussions about personal finance and wealth creation.

Our data at Arion show that the number of women investing in Stefnir funds increased by 56% during the first two years of the initiative. The number of women using regular savings plans in the company's funds increased by 67%, while women's total holdings in the funds grew by 27%.

These figures demonstrate that an increasing number of women are taking their first steps into investing and are developing investment portfolios.

Plenty of work still to be done

The project is, however, far from complete.

When we launched the initiative, we highlighted the fact that women hold only around 30-40% of financial assets, compared with 60-70% held by men. The exact proportions vary depending on whether one looks at supplementary pension savings, securities, or investment funds. This was evident from data gathered by the Bank and its subsidiaries, as well as from the stock exchange.

We also pointed out that unequal wealth accumulation appears to begin at a very early age. The same gender-based distribution could be observed among children under the age of two. Looking solely at children under two years old and the securities holdings and deposits registered in their names with the Bank, girls accounted for approximately 40% of the total amount, while boys accounted for around 60%.

Despite a growing awareness of the issue within society and increased investment by women in Stefnir’s funds, these figures regarding the distribution of wealth have not fundamentally changed. This applies equally to both adults and children.

There is therefore still plenty of work to be done, and the Women Invest initiative is far from finished. At Arion, we intend to continue promoting greater financial literacy, offering engaging and informative educational programmes, and increasing the opportunities available to women to learn about investing.

Give equal encouragement to our daughters and sons to save money

It is also time for each of us to be mindful of the messages we send our children about finances and wealth creation, and to ensure that, from an early age, they receive the same encouragement to make informed decisions about their personal finances. Let us encourage daughters and sons alike to save, invest, and build their financial security.

The first two years of the Women Invest initiative demonstrate that change is possible. They show that the interest is there and that targeted education can have a genuine impact. We still have a long way to go, but we have set out on the journey.