Bringing change to fintech through diversity and innovation

Well, if only it were that simple. According to recent studies, despite the many opportunities women have had in the last five decades, which have created major changes, both in society and business, we do not have quite the same established place at the table as our male counterparts.

Things are not as different as we think they are

In fact, a new report from The Reykjavik Index found that as many as 1 in 10 respondents felt uncomfortable having a female CEO.

Similarly, Trachet – a female-led business consultancy – commissioned a landmark study of the UK corporate market, which found that 28% of women in the UK believe investors will not consider them a viable investment opportunity simply because of their gender.

Women account for 1 in 3 entrepreneurs in the UK, yet data shows that only 16% of all equity capital is raised by female business owners. Furthermore, the Reykjavik Index for Leadership (which surveys all G7 nations) found that in today’s climate, trust in women in positions of power has actually decreased.

Trachet’s data suggested that a staggering 52% of Britons share the feeling that women need to work twice as hard or be twice as qualified as men to achieve the same goals in business – a problem that is exacerbated when it comes to women-owned companies.

Female leaders in the fintech area

As far as pan-industry results go, it is not a nice picture. So how do prominent women working in the fintech industry see their positions and futures shaping up?

Maria Campbell, COO at Griffin, has pioneered inclusive, people-led strategies for tech unicorns like Snyk, GoCardless and Monzo. Her career sweet spot is helping startups establish the right cultural and operational environment to scale successfully. Recently, she was recognized as one of the top 25 female financial technology leaders in Europe by The Financial Technology Report and as one of London’s “20 Most Impressive and Successful Banking CEOs by Best Startups (2022)”.

She says: “Fintech is at the intersection of two industries that have both historically been dominated by white middle-class men. There is still a long way to go, but we have seen some progress over the past year; interestingly, I think this is due to changes in investor sentiment. Changes in the macroeconomic environment have caused hyperscale technology companies to retreat – especially those with products that are considered “nice-to-haves” or that have focused on growth rather than sustainability. They no longer receive attention from investors, which leads to large layoffs. In contrast, fintech has remained more robust, as it solves real-world problems and remains relevant.”

Campbell says this has resulted in fintech companies having a larger talent pool to hire from – one that consists of more people from demographics that are typically underrepresented in tech companies. “More diversity in the candidate pool has been shown to result in increased diversity in companies, which we are slowly seeing happen.”

New trends are driving a more diverse fintech workforce

Meanwhile, a greater authenticity when it comes to different practices has also brewed in the room. Rather like the “greenwashing” phenomenon of late, some companies have hired more women just to tick boxes, rather than actually adopting better diversity practices.

Ben Aier, VP of Product at Yapily, leads a diverse team exploring new ideas and building new products at the fintech company. She has worked her way up from software developer to CEO at investment bank JP Morgan, where she led Global M&A technology strategy and execution, before joining Yapily just over 12 months ago.

“The growing recognition that diversity is not just a buzzword or checkbox exercise – and that having more female fintech leaders can increase a company’s ROI and culture – has made diversity the top agenda for the industry,” says Aier.

“There is increasing accountability for companies that are not currently taking the necessary steps to build a richly diverse workforce.”

Aier says it’s not enough to bemoan the fact that only 19% of tech workers are women and that companies aren’t getting enough female applicants for vacancies as excuses for this lack of diversity. Instead, companies must ask questions Why fewer women want to work for them and take the necessary steps to build better hiring practices, promote transparent cultures and fight harder for female talent.

“This year, the focus must be on building this talent up: nurturing them, advocating for them and guiding them. But this responsibility cannot only fall to our women leaders, although I believe we must be part of the solution. I have didn’t always have mentors who looked like me or had the same background as me, but they still had a huge impact on my career. Good mentors are the ones who listen and stand up.”

Flexible work and the post covid era

Other trends that have driven greater diversity in the workplaces of the fintech and insurtech industries are hybrid work patterns and flexible work practices, which were implemented as a result of the pandemic and have left their mark on today’s work environments.

Romi Savova is the dynamic founder and CEO of PensionBee, the UK’s leading online pension provider. She launched the business in 2014 in a bid to simplify retirement savings in the UK, after her own harrowing transfer experience. Before launching her own startup, Savova held key positions at Goldman Sachs and Morgan Stanley, while also holding an MBA from the prestigious Harvard Business School.

Savova says: “Many employers have retained the flexible working policies that were first implemented during the COVID-19 pandemic, and this has really helped to challenge the perception that in certain roles it was not possible to work from home or work flexible hours.”

Savova explains that with a quarter of women stating that they previously had to take a career break due to inflexibility at work, the use of telecommuting has helped facilitate greater participation for those who may not have previously been able to commit to work. full-time, such as women with caring responsibilities and disabled workers.

However, the change has not gone far enough. Savova would like to see a lot more done to encourage more women to join the fintech industry – including better access to affordable childcare and equal pay opportunities which remain an issue, even in the UK, she says.

“With women only representing around 30% of the fintech workforce, more needs to be done to open up roles for those from diverse backgrounds to ensure a wider range of transferable skills and experiences in our sector.

“Offering flexible, inclusive work and offering equal pay for equal work is fundamental to hiring more women to work in fintech. One of the biggest obstacles for working women is access to affordable childcare, and we know this is one of the main reasons why women take a career gap after having children. As women are more likely to cut back on paid work hours to take on a greater share of unpaid care or housework, they subsequently earn less than their male counterparts and find it more difficult to re-enter the workforce at the same level.”

Diversity starts with better education

But all the benefits in the world aren’t going to drive change if fewer women than men seek opportunities in the fintech industry. The fact is that fewer women enter this type of career because, from an early age, they see jobs in the financial sector as primarily better suited for men.

Krista Grigg’s, head of financial services and insurance at Fujitsu, says more needs to be done from the ground up to promote the idea of ​​careers in STEM to girls in schools. She says businesses can play an active role in helping with that.

“Harmful stereotypes continue to persist in certain parts of the industry and it is important to work to create a fair culture. This will require more female role models and male allies to change the culture.

“As we move into 2023, it’s important to ’embrace justice’ and support each other by lifting each other up and celebrating our achievements.”

Griggs explains that industrial cultures persist – and this is unhelpful. “In the past, the finance and insurance industry often saw women in management positions as ‘first’ or ‘only’. To remove this ‘other’ connotation, industries need to change the narrative by raising the profile of women in senior positions and positioning them as leaders on a par with their male counterparts.”

“For younger people seeking meaning in their careers, it is particularly important to highlight the significant initiatives of women leaders in the technology sector,” she continues.

“Women in leadership positions can promote the social benefits technology brings to society and motivate the next generation of female technologists. At Fujitsu, we organize ‘Our Girls’ Days to promote STEM activities for children aged 7 to 11 and introduce them to women in STEM.”