Wall Street veteran Sallie Krawcheck is making closing the investment gap her mission with digital investment startup Ellevest. And while the pay gap may be in the spotlight right now, Krawcheck warns that the gender investing gap can have an even bigger impact for women over their lifetimes.
"It's important because it's important for our economy and society," says Krawcheck of getting women to invest at the same level as men. "When women are financially stronger, it's not just good for them, it's good for their families, it puts money into the economy, the market — it's good for everyone."
Wall Street has failed to serve women investors, Krawcheck says, noting that many financial institutions have been unsuccessful in their attempts to draw in women.
"They've seen it as a marketing problem. 'Gee, we just need to market better to these women,'" says Krawcheck.
"What we did at Ellevest, different from anyone, is we changed the underlying product," she says. "Our product, our investing algorithm, which has a patent pending on it, takes into account that women live longer, their salaries unfortunately peak sooner.
"And then there are a bunch of other subtle things. Women aren't driven by or thrilled by outperforming the market. They're much more excited about, 'Can I meet my goal?'"