FinTech should lead the way for equality
But despite the great leaps forward, there is a significant difference between the number of men and women who are welcomed into the industry. As a young woman who had left school after A levels, it was challenging to progress in a very ‘traditional banking environment’. I was lucky to be accepted into an accelerated leadership development program for the first couple of years, but then it was up to me and it took a lot of hard work to get to where I am today. It’s incredibly important to talk about the challenges that still face women so that we can push for equality and representation, create even more opportunities for talented women across all levels, and ultimately serve our customers better.
Currently, the top five gender pay gaps by sector are all in financial services, with the average industry pay gap at 26.6%. That is well above the 12.1% recorded across the wider UK market[1]. This must be prioritized by decision-makers in order to balance the opportunities and make room for new talents and perspectives to enter the market – something that is greatly needed under real economic uncertainty.
I recently read Christine Lagarde’s experience of being surrounded by men throughout her career, including in her current role as head of the European Central Bank. Although I can relate to how she feels, I am grateful to have had Ana Botin as a role model for me during my time at Santander. She was admired by many in the organization and I learned many positive lessons from my time there.
Unfortunately, my experience of having strong women in leadership positions is still rare. In 2021, the proportion of women in leadership roles in financial organizations was 24% with estimates that this would grow to 28% by 2030[2]. This should not be acceptable and shows that we must do more to ensure that we move from conversations about increased equality to material action.
The UK government has recognized that change is needed and has been running the HM Treasury Women in Finance Charter since March 2016 to improve the gender balance in senior management. The charter now has over 400 signatories with 950,000 employees across the sector. 97% of these signatories have also said that their agenda to improve representation has improved since the inception of the Charter.
Unfortunately, my experience of having strong women in leadership positions is still rare. In 2021, the proportion of women in leadership roles in financial organizations was 24% with estimates that this would grow to 28% by 2030.
In their five-year report, Charter documented that there has been an increase from 14% to 22% on average for women on executive committees since 2016. And female board members have also risen from 23% to 31%[3]. Although there is still work to be done, these are encouraging figures and show what can be done when government and industry take action. We must continue to track data, hire, promote and train women to drive future improvements and provide positive environments that allow both women and men to thrive in their careers.
FinTech is a disruptive force across the finance and banking industry as it continues to challenge the status quo by incorporating new problem-solving technology, ultimately making life easier for those who interact with it. Often, as is the case with challenger banks, disruption takes the form of going against the traditional banking model and facilitating adaptation. I have found this refreshing since joining Kroo, because building a bank from scratch allows you to start with a blank canvas and remove the traditional processes and bureaucracy associated with legacy banking.
Due to its disruptive nature, the FinTech industry has an opportunity to lead the way in empowering women and other minority groups ignored by the sector. It is well positioned to bring equality to the financial sector by providing opportunities to develop a stronger team that better represents and serves its client base.
However, old banking values are infiltrating this new and exciting space, as only 1.5% of global FinTech firms are founded entirely by women and receive only 1% of total FinTech funding. Additionally, only 5.6% of global FinTech CEOs are women, and less than 4% hold the title[4].
Overcoming barriers and creating real change
Highlighting and raising awareness of the stigma that persists against women in financial services and leaders in other corporate environments plays a critical role in driving change. All organizations should keep this in mind if they want to contribute to solving the problem of gender inequality in the future.
At Kroo, I am proud to say that we are very focused on creating initiatives to help more women progress into leadership roles. I mentor several women in our team, having experienced the benefits of this for my career progression. We also work with organizations to contribute to the advancement of women in technology and product roles. We are very focused on initiatives such as the gender pay gap, which for new banks is better than some of the more traditional organisations, but still has improvements to make.
We all know that change will not happen overnight and it will take time and effort to address inequality across the financial sector. Yet today’s wave of challenger banks and a generation that wants to do banking differently has a golden opportunity to produce change. In my role at Kroo, I am committed to championing diversity and ensuring equal opportunities in my team and for women in the sector. Equal representation of women in the financial sector may still not be a reality, but together we can make it happen.
[1] PwC, Gender Pay Gap reporting in the Financial Services sector in 2020/2021 [2] Deloitte, Leadership, Representation and Gender Equity in Financial Services [3] HM Treasury Women in Finance Charter: Five Year Review [4] Findexable, Fintech Diversity Radar
