Researchers in Germany have uncovered a systematic bias in the way a large credit institution advises its clients. By analysing 27,000 advisory meetings between bank staff and customers, the study found that female clients were consistently directed toward higher‑cost investment funds and ended up paying significantly more in fees than their male counterparts.

Key findings

On a typical €10,000 investment, women paid on average €1,455 more in advisory fees over a ten‑year period. The disparity was linked to advisors’ assumptions about gender: when advisors were told a client’s gender, they judged women to be less financially sophisticated, less price‑sensitive and less able to negotiate, and consequently offered more expensive products. When gender information was omitted, the knowledge assessments given to men and women were similar.

Male advisors were more likely than female advisors to charge women higher fees. The study also highlighted that foreign customers were less likely to receive rebates, suggesting possible discrimination based on nationality.

Context and impact

The findings arrive against a backdrop of growing reliance on private savings for retirement across the European Union. In 2023, women in the EU earned on average 12 % less than men, and projections from 2019 indicated that women’s future pensions would be 29 % lower than those of men. Union representatives and consumer groups warned that shifting retirement responsibility onto individuals could disproportionately affect women.

One interviewee, Louise Nordström, recounted being persuaded to invest in a product she did not understand and only withdrew after a partner warned her. She summed up her experience: "If you hear words you don't understand, don't do it".

Responses

Banking industry groups argued that fee levels reflect market competition and that advisors match products to client risk profiles. They suggested that improving financial education would enable consumers to negotiate better terms.

Consumer advocacy groups countered that education alone cannot eradicate structural bias. They urged the European Commission to adopt stricter gender‑neutral advisory rules and to require plain‑language fee disclosures.

Germany’s financial regulator BaFin announced it would review advisory‑service methodology and assess whether existing consumer‑protection rules adequately address gender‑based pricing.

Policy implications

The researchers concluded that gender discrimination in finance can be measured and that policy action is needed to protect women’s long‑term financial security across Europe. Their findings support calls for tighter regulation of advisory services and greater transparency of fees.