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New research shows that 23 million* people would consider ditching their bank if it has a high gender pay gap.
Women are more likely than men to say they’d consider switching banks, with over half of women (51 per cent) saying a large gender pay gap would make them likely to switch compared to over a third (37 per cent) of men. These are the findings of independent research carried out for SavvvWoman.co.uk, a leading finance website aimed at women.
With some banks reporting median gender pay gaps of over 40%, and insurers reporting gender pay gaps of up to 34%, it seems to be an issue that could drive away customers. The deadline by which companies that employ 250 people or more have to publish their gender pay gap is April 4th.
The research carried out on over 2,000 UK adults for SavvyWoman by Opinium Research finds:
Over four in ten (44 per cent) adults who have a bank account are likely to switch their bank.
Four in ten (46 per cent) adults who use an insurer are likely to switch their insurance company.
Over one third (45 per cent) of adults who use a credit card are likely to switch their credit card provider.
Four in ten (46 per cent) adults who use an investment company are likely to switch their provider.
The research also finds that women are more likely to switch providers across all categories, compared to men:
Over half of women (51 per cent) who have a bank account are likely to switch their bank, compared to 37 per cent of men.
Over half (52 per cent) of women who use an insurer are likely to switch their insurance company, compared to 39 per cent of men.
Over half (51 per cent) of women who use a credit card are likely to switch their credit card provider, compared to 38 per cent of men.
55 per cent of women who use an investment company are likely to switch their provider, compared to 39 per cent of men.
Millennials are also much more likely to switch providers based on a company having a large gender pay gap. The research finds:
57 per cent of 18 to 34 year olds who have a bank account are likely to switch their bank, compared to 36 per cent of adults aged 55 or over.
58 per cent of 18 to 34 year olds who use an insurer are likely to switch their insurance company, compared to 41 per cent of adults aged 55 or over.
57 per cent of 18 to 34 year olds who use a credit card are likely switch their credit card provider, compared to 37 per cent of adults aged 55 or over.
58 per cent of 18 to 34 year olds who use an investment company are likely to switch their provider, compared to 38 per cent of adults aged 55 or over.
Sarah Pennells, founder of SavvyWoman, says: “Some banks have got a gender pay gap of over 40% – even up to 60% depending on how you measure it. It’s only now that banks, insurers and investment companies are being forced to go public on this that we can see just how male-dominated they are at the top.
The gender pay gap doesn’t seem to have been a priority for these companies until now. And while many financial firms have produced slick reports showing how they’re tackling the issue, I think they’ll get the message loud and clear if their customers switch to providers with a smaller gender pay gap.”
Sarah continues: We know that millions of people stick with their banks and insurers when they’re not happy with them. Perhaps a large gender pay gap could tip the balance? Some companies have a much bigger gender pay gap than others, so don’t assume they’re all as bad as each other, and some seem to be taking the issue more seriously in terms of what they’re going to do about it.”
Since April 2017, companies and charities employing 250 or more people have to publish statutory calculations every year to show how large the pay gap is between their male and female employees. Companies should also provide an explanation of why their gender pay gap exists and what they plan to do to close it. If a company has a large gender pay gap, it’s generally a reflection of the fact there are still more men in senior and/or well-paying roles.
