Working Towards More Gender Balance in UK Financial Services

UK financial services, like many industries including consulting, has much more to do when it comes to gender balance. Despite the significant effort in many firms in recent years it remains a clear challenge, one that requires organisations to not only recognise the importance of the issue but to be genuinely committed to women at every career stage.

There’s no magic wand, but there are practical steps firms can take to accelerate the change already underway. That’s why I’m pleased to be involved in the work we’re doing at Oliver Wyman to support financial services firms in increasing the representation of women in their businesses. It also links with our own work internally to achieve this goal.

Our aim overall is to help clients create effective businesses that have a positive social role, and for us to do the same. As part of that I thought it would be helpful to share an update on a few of the things that we are doing in this space.

Women in Financial Services Report

Our work includes the release today of our flagship publication, the global Women in Financial Services Report 2020. Entitled A Panoramic Approach, it explores how firms can move forward on gender balance. Following the second edition in 2016, we have expanded beyond women in the workforce to look at all female stakeholders including customers, supervisors, shareholders, and society.

We believe firms can see significant benefits when they adopt a more inclusive approach, ranging from increased revenues to supporting equality in society. We’re looking forward to sharing the report and working with clients to put its recommendations into practice.

Oliver Wyman Forum

The Oliver Wyman Forum, headed by Managing Partner John Romeo, brings senior leaders together on key cross-sector issues. Our most recent event in the UK was focused on a joint report with the International Finance Corporation (IFC) and Rock Creek, titled Moving Toward Gender Balance in Private Equity and Venture Capital.

The event generated a great discussion among a roundtable of industry guests, stimulated by notable report headlines: 

• Report data, shared by Shruti Chandrasekhar, Head and Senior Investment Officer, SME Ventures Private Equity, IFC, highlighted that funds run by gender-balanced fund managers deliver returns that are 20% higher
• Similarly, for funds with gender-balanced investee firms, there is a 25% increase in valuations 

The report also includes recommendations for action on gender balance: to establish tone at the top with explicit targets; introduce more inclusive hiring practices; not to force choice between family and career; and to close the sponsorship gap. The message is clear – firms need to make fundamental changes to working practices, with management adopting these.  

Open discussion was moderated by Heather Kipnis, Lead Women’s Entrepreneurship, Gender Business Group, IFC. One point the group agreed on was that raised by Oliver Wyman Partner Julia Hobart on addressing the ‘missing middle’, referring to the women who leave mid-career. The reasons are complex but it’s partly because their work environment doesn't enable them to adequately balance work and personal life, including family. This resonates: while greater numbers of women at entry level is positive, retaining talent is key.

WeAreTechWomen Conference

Another aspect of gender balance that we discuss in the Women in Financial Services Report is the impact of digitisation, with technology and related solutions traditionally skewed towards men. This is echoed in a recent report from Tech Nation that in the tech sector only 17 percent of employees are women. It’s an important consideration for UK financial services firms as they work to maintain their competitive position through technological and digital transformation.

Oliver Wyman is a long-time supporter of women in technology, including working with WeAreTechWomen since the launch of its annual conference four years ago. This year’s WeAreTechWomen Conference takes place on 22nd November, with a focus on the responsible use of big data. Speakers will include Oliver Wyman Partner Deborah O’Neill, UK Head of Digital, who will deliver a keynote address on what needs to be done by governments, corporates, and the public.

Meanwhile Kaijia Gu, Oliver Wyman Partner, will take part in a panel to discuss “How to accelerate your career” alongside other senior tech leaders. This speaks to the earlier point on retention of talent. With technology central to businesses including those in financial services, firms need to back women in building their careers.

It also enables us to circle round to the central theme for gender balance. Fundamentally, by ensuring stronger support for women throughout the workforce, businesses will be more strongly positioned overall.