By Ayesha Ofori, a former wealth advisor at Goldman Sachs, is taking significant steps to address the gender investment gap in the United Kingdom, which currently stands at a staggering £567 billion ($759 billion).
On Wednesday, she unveiled Propelle, an innovative app-based investment platform designed specifically to empower women to invest and build their wealth.
With men holding over £1 trillion in investments compared to just £450 billion for women, Ofori aims to close this gap and help women take charge of their financial futures.
Propelle is set to revolutionize how women approach investing by offering access to a diverse range of investment options, including funds from reputable institutions like HSBC, Vanguard, and BlackRock.
£1.2 million in funding so far
To kick off her startup, Ofori has already secured £1.2 million in funding, which includes approximately $100,000 from Google.
Other notable investors in Propelle include Stefan Bollinger, Chief Executive of Julius Baer, and Lucy Demery, a Managing Director at Barclays.
While at Goldman Sachs, Ofori earned the trust of clients with over £500 million of their money, achieving the milestone of being promoted to executive director.
“Things were going amazingly well. I hit that half-a-billion threshold—the threshold they tell you to aim for. I passed that,” she told CNBC in an interview.
Despite her success, Ofori chose to leave the financial giant, stating that making rich men wealthier had become monotonous and diminished her sense of purpose.
Challenges women face in building wealth
The gender investment gap is only one aspect of a broader issue, as Ofori highlights the real challenges women face in building wealth.
Even though women tend to live longer than men on average, they are investing significantly less.
Additionally, digital platforms often fail to structure investments in a manner that is appealing or accessible to women.
According to Boring Money, a UK-based financial research firm, the gender investment gap grew by another £54 billion in the 12 months leading up to January 2024.
Moreover, the gender pay gap and the gender pension gap present alarming statistics in Great Britain.
A report from the British Union Prospect reveals that the gender pay gap stood at 14.9%, while the gender pension gap was even more pronounced at 37.9% in 2022.
Propelle has also found that there are 3.3 million fewer women holding investments in the UK compared to men, as many women mistakenly equate leaving money in an Individual Savings Account (ISA) with actual investing.
These troubling statistics were pivotal in motivating Ayesha Ofori to leave her prestigious role at Goldman Sachs and dedicate herself to empowering women toward financial independence.
In her words, “I want to help women become financially free,” she stated on CNBC Make It, underscoring her commitment to bridging the gender investment gap and transforming the financial landscape for women in the UK.
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