Saving motives, gender, and the use of financial advisory services

The purpose of this paper is to understand if and how saving motives can predict bank customers’ use of financial advisory services. In addition, it analyzes possible gender differences regarding this relationship.

The study uses a large and unique sample of Swedish bank customers, combining objective bank register data with subjective data from a questionnaire. A probit regression is used. Since decisions regarding the use of financial advisory services can be influenced by, e.g., age, wealth, gender and marital status, the author analyzes results at both the overall level and the group level.

All three saving motives are found to be predictors, i.e., motives to save for wealth, retirement, and a rainy day (with opposite sign). Only the motive to save for retirement is significant for both women and men. Wealth differences seem more important than gender differences, except for the rainy day motive where gender differences are observed also among the wealthy.

The study is important since there is a need for financial advisors to understand their customers’ context, including motives to save. Saving motives involving longer time horizons and more uncertainty are likely to predict the use of financial advisory services.

This paper is original because it deepens the understanding of the relationship between saving motives and customers’ use of financial advisory services, focusing also on the aspect of gender differences, while controlling for demographics and socioeconomics, and customers’ interest and confidence in financial matters, risk tolerance, and financial literacy.