How to improve female representation in finance

A considerable number of women are deterred from entering the industry because of the perceived alpha-male culture

By Hakan Enver 

It is time to properly address and act on the lack of female professionals working in technology and financial services, ensuring these industries have more women filling leadership roles in the future.

It is well publicised that there are not many female professionals in finance and technology, and not many women entrepreneurs in these fields. Banks are struggling to find and retain women, having to compete harder than ever to attract appropriate candidates. Companies have been taking strides, but there is still a lot to be done in terms of promoting female representation at senior levels and closing the gender pay gap across the financial services industry.

There is a positive correlation between a diverse executive team and its financial performance. But why, if a diverse and balanced gender ratio adds clear value to any organisation, are women so drastically underrepresented in these areas?

In technology, women occupy less than 20% of jobs. Despite the fact that 47% of the UK workforce is female, when it comes to fintech, the overwhelming majority of staff is male. Less than 5% of executive roles at Europe’s top 50 fintechs are held by women; there is only one female chief executive. At current rates, female representation at executive level is not expected to hit 30% until 2048.

The difference in average salaries between men and women in financial services is vast. HSBC, the bank, reports a mean gender pay gap of 59%. Many institutions have highlighted that equal pay is not the issue. It is primarily down to the lack of women in senior roles.

The fact of the matter is that a considerable number of women are deterred from entering the industry because of the perceived alpha-male culture. Companies must focus on adjusting their culture if they want to attract women. At the moment, in many cases, the culture is a deterrent.

This male-dominant culture is most apparent during bonus season. Men tend to have more confidence when it comes to discussing bonuses, while women are often more reserved. One way to overcome this is by ensuring an individual’s bonus is assessed in a formulaic manner, against clear and concise objectives.

Another negative aspect of office culture in this industry is the belief that working beyond contracted hours is part and parcel of being successful. Mothers frequently seek opportunities that offer flexible working, but the lack of decent arrangements in financial services is likely to put them off entering the sector in the first place.

There are ways this can be changed. There have been calls for senior male professionals to adopt flexible working practices – something that is rare in the industry – in an attempt to change the culture and show that flexible working does not lead to lower productivity.

Women must be encouraged and empowered to apply for leadership positions. To help with this more women should consider entering the industry in the first place. The government and industry must work with schools and educational organisations to promote relevant subjects to young women, and raise awareness of available career paths. This transparency from an early stage is key if we are going to change the mindset of women.

Some companies are taking steps. PwC aims to get organisations to work together to increase the number of women in UK tech roles with its Tech She Can programme. The accounting firm has also announced it will not accept male-only shortlists, in an attempt to close its gender pay gap. Rise Up from Money20/20, which organises global events for the financial sector, is another programme that is trying to empower the next generation of female leaders in financial services.

But all companies need to recognise the benefits of a gender-balanced workforce – it will help them to be happier, more profitable and, overall, more successful. They need to foster women’s careers early on if they want to access talent that would otherwise go untapped. Women must be given equal opportunities and confidence. After all, they are going to make up a significant part of the next generation of our leaders.