In recent years, the fintech sector has emerged as a highly promising area for both innovation and growth characterized by technological advancements that have disrupted traditional finance. Although traditionally male-dominated, the industry has recently witnessed a surge of women who are leaving their mark and reshaping the financial landscape. These women are breaking down gender barriers and driving fintech innovation through the introduction of new technologies as well as business models making significant contributions to the field.
A key factor contributing to the impact of women is the growing awareness and support for gender diversity in the workplace. In response to the uneven representation of men and women, fintech corporations are taking measures such as funding instructional courses, sponsoring mentorship endeavours and establishing policies for diversity and inclusion. Such actions have facilitated women obtaining increased exposure and prospects to exhibit their abilities and proficiencies within the field.
According to a recent report by the Boston Consulting Group, gender diversity has a positive impact on financial performance with companies in the top quartile for gender diversity achieving a 15% higher return on equity.
The fintech sector is experiencing a shift as women gain more insight into its opportunities and challenges. With their newfound understanding, they are becoming instrumental in driving innovation and playing a key role in the industry’s growth. The Financial Times reported that a leading reason for the increased participation of women in fintech is their inclination to be early adopters of new technology. Women are more likely than men to utilise fintech applications for investing, managing money and budgeting.
An example of a woman who has made significant contributions to fintech is Sallie Krawcheck, the CEO and Co-Founder of Ellevest, an online platform for female investors. She has established herself as a prominent advocate for gender diversity in finance. Her contributions to fintech have been significant as her platform aims to bridge the gender wealth gap by offering customised investment opportunities for women. Krawcheck has revolutionised finance for women with her unique leadership and forward-thinking strategies. Additionally, she has paved the way for numerous other women to succeed and prosper in the industry.
Anne Boden, the CEO and founder of Starling Bank, a mobile banking platform based in the UK, is another excellent example. She is renowned for her revolutionary efforts in fintech, and her company has played a pivotal role in the digital banking revolution. Boden’s emphasis on enhancing customer experience, promoting transparency, and driving innovation has placed Starling Bank at the forefront of progressive challenger banks. Boden has become a role model for women seeking to pursue careers in fintech owing to her exceptional leadership qualities.
There is no doubt that gender parity is happening more than ever in the fintech sector.
However, despite the advances women have made in various fields, they continue to face significant hurdles. One of the primary obstacles they encounter is securing adequate funding, as female-led startups routinely encounter difficulty in securing the same level of investment as their male peers. Statistics compiled by PitchBook showed that female founders received a meagre 2.3% of all venture capital investment in 2020, making access to funding one of the greatest challenges they face. This lack of equitable financing aggravates the gender imbalance in the industry, leading to negative outcomes like under-representation of diverse viewpoints, limited product development and failure to cater to the unique needs of female customers.
A bigger hurdle is the pervasive gender bias and discrimination experienced by women in the workplace. The negative effects of unequal pay, underrepresentation in leadership positions, and unconscious bias are not limited to the individual women affected but have far-reaching consequences throughout the industry.
To facilitate the growth and evolution of the fintech industry, it is imperative that the sector prioritizes diversity and inclusivity. To achieve this, programs that promote gender diversity such as mentorship and training programs should be established and implemented. In addition, it is crucial to prioritize the pursuit and endorsement of women-owned startups. It is equally important to establish and maintain a workplace that fosters impartiality and freedom from gender prejudice and discrimination. Ongoing efforts to empower and inspire women in fintech and other industries are necessary to drive progress, uncover new opportunities and create a fairer and more inclusive world.