Let's #BreakTheBias FinanceIndustry -Update your data and address antiquated inequities

There are moments when I take a deep, critical look at certain aspects of the financial services market and I have to pause and ask myself - “what year is this data from?” Sure, I’m only partially joking but there are certainly some data points that really make me scratch my head. This isn’t to say we’re living in the mid 20th century, and we have certainly come a long way from the days when a woman couldn’t get a credit card without a co-signer (1974!), but if we’re to live in a truly gender equal society, there is still much work to be done.

One of the most eye-popping stats I’ve come across pertains to the gender retirement gap. On average, women retire with 30-40% less money in their retirement savings than men. In Europe, a place we consider a bastion for liberalism and equality, this number is above 30%. In other, less democratic societies, the number jumps to as high as 49%. What makes this number so troubling to me is that the wage gap is only 10-20% in developed countries. Well, I shouldn’t say “only” because any number above 0% is too high.?

Since women are retiring with less than their male counterparts, they are more likely to end up in poverty in their later years. This trouble is compounded by the fact that women live longer than men and are often forced to retire earlier than men. This devastating formula translates to millions of women who earn less money overall, relying on that money to cover a longer time period once their careers are over.?

Now all of this would be bad enough if expenses across the genders were equal. Spoiler alert - they’re not. In the US, household expenses over the past 50 years have steadily dropped. However, there are two expenses that have bucked the trend and continually risen - childcare and healthcare. And you guessed it, these two household expenses are disproportionately paid for by women and very often a credit card is out of reach.

This brings me to the next problem but also to the place where fintech can play an outsized role: It’s significantly harder for women to build credit.

All of this is to say that women were never the intended customers in the financial services industry. The system was designed by men to be used by men. It’s no wonder why the bias is overwhelming.?

So, how can we use fintech to solve these problems?

On this front there’s some good news and reason for optimism. A new generation of startups is launching with the goal of leveling the playing field. New financial tools are popping up which go out of their way to address the needs of female consumers. Women hold 40% of global wealth and are accumulating wealth faster than men. What business wouldn’t want a piece of that pie?

But as I said earlier, this isn’t just about building products and services that work for women. Any financial services product meant to service the needs of women would see an immediate, possibly huge benefit to their business model. The reality is that not adapting services to fit the needs of women is just plain bad business. A company that continues to shut out women is a company that’s signed its demise. In this arena, excuse the overused cliche, but the future is female. Companies that meet these needs and tap into this underserved market will thrive and win out in the end.?

So, on this International Women’s Day, I thought it would be a good time to look at all the data, scratch our collective heads and conclude that it’s about time we address all of these antiquated inequities. That means it’s time to update our financial services sector from the last century to a better, current model and in doing so, we can finally #breakthebias.?

Happy International Women’s Day everyone!