Women have always had to fight for positions of power and authority – especially when money is involved. Did you know, for example, that it was only in 1975 that women were allowed to open their own bank accounts without the express permission of their fathers or husbands? In the run-up to our prestigious Round Table for C-Suite Women in Insurance and Finance in September, we look at the unique challenges that women in the financial sector face and how these barriers can be overcome.
The adage, ‘if you can’t see it, you can’t be it’ still holds true for many women who are considering entering the financial sector. With relatively few women in senior positions, the lack of role models can impact younger women in two ways: firstly the lack of visibility can obscure a definitive career path, and secondly, the scarcity of women executives can affect more junior women’s confidence and belief in themselves, leading them to doubt their own abilities and achievements in a male-dominated environment.
When finance pioneer Hilda Harding became the UK’s first female bank manager in 1958 her appointment caused outrage. However, it’s encouraging to know that the latest data (2023) shows that there are more woman in banking than ever before, with an average of 52.47% among the top 10 banks in the UK, demonstrating that things are improving, but there is still a long way to go.
Gender stereotypes erroneously suggest that women are less suited for complex fields like finance, implying a lack of capability in decision-making, risk management, and strategic thinking. However, the reality contradicts these outdated views. The appointment of Rachel Reeves, as the new Chancellor of the Exchequer exemplifies the competence and leadership women bring to high-level financial roles. Despite these advancements, such biases persist within the industry and society, erecting unnecessary barriers to women’s promotion and aspirations.
These entrenched biases not only discourage women from entering the finance sector, often perceived as an exclusive 'old boys’ club', but also hinder their career progression within it. This is not only a loss for the women but also for the organisations themselves. Studies have consistently shown that companies with women in leadership positions financially outperform those without by 21%, highlighting the substantial benefits of diversity in leadership.
Despite strides toward equality, women continue to shoulder a greater burden of domestic responsibilities—from household chores and shopping to the early morning school runs and caregiving for elderly relatives. This disproportionate share of domestic labour not only impacts women's mental and physical health but can also impede their career progression.
In many traditionally male-dominated workplaces, tasks typically associated with women are often undervalued, and women may find themselves having to exceed the performance of their male colleagues just to prove their worth. This pressure can lead women to prioritize their professional obligations over their personal well-being, further exacerbating the challenges they face in achieving a sustainable work-life balance. Recognising and addressing these inequities is crucial not only for the well-being of women but for the overall health of the workplace and society.
Diversity & Inclusion (D&I) initiatives stem from the Equality Act 2010, which makes it illegal to discriminate against protected characteristics such as age, gender, disability, race, religion or sexual orientation. Many organisations now have targeted pathways for inclusion that encourage minority groups to apply for roles, and enable them to progress within them.
Without such initiatives, as we’ve already seen, women, particularly women of colour or those who have a disability, are at a disadvantage in a traditionally male-dominated environment. With them, not only are employees happier and more productive, but innovation is enhanced and profitability increased.
There’s little doubt that more efforts need to be made to increase women’s representation within the senior echelons of the finance sector. Possible solutions include:
We’ll be discussing these issues and many more in our exclusive September round table event which will bring together C-suite women to discover what more needs to be done to help women progress in their careers and empower rising talent. Contact Us.