4 charts, Member Exclusive

4 charts on gender equity this International Women’s day

  • Gender diversity in financial services has made major progress, however women lag far behind when it comes to representation in leadership.
  • Here are four charts that explore the current state of women in leadership across financial institutions and fintechs.
close

Email a Friend

4 charts on gender equity this International Women’s day

This International Women’s Day Tearsheet takes a look at where the industry stands when it comes to women in leadership in financial services.

Over the past two decades, the financial services industry has made slow but steady gains in advancing the path towards gender equity and inclusion in the workplace. As more companies have realized the significance of gender diversity in increasing workplace productivity, they have made conscious efforts to attract and retain female talent over time.

In addition to efficiency benefits, customers, investors and governmental bodies alike have added pressure on firms to demonstrate greater commitments towards diversity, inclusion and equity.

Growth in leadership over time

Source: Deloitte

Women make up more than 50 percent of the workforce in the financial services industry in the U.S but they embody just under 22 percent of leadership roles. Based on historical data, growth projections indicate that the rate of women in leadership could reach up to 31 percent by 2030.

Although this forecast demonstrates some improvement, the proportion of women in leadership would be still below parity.

Additional predictions indicate that it will take until 2085 for women to reach men when it comes to occupying key leadership positions.

Growth by leadership role

Source: Deloitte

The percentage of women in senior leadership or in non C-titled leadership roles has not kept up with the pace of women in the C-suite. The gap has widened since 2010 and has reached 7.6 percentage points in 2019.

According to Deloitte, if growth across both categories continues at the same rate since 2010, by 2030 C-suite leaders could reach up to 34.1 percent compared to 24.8 percent of women in senior leadership positions. Analysis reveals that firms need to make appropriate investments to compensate and improve outcomes for women in senior leadership positions.

CEO recruitment opportunities

Source: Deloitte

According to a report in its Within Reach series which examines  patterns of gender equity in financial services, Deloitte reported that out of the 107 of the largest U.S public financial institutions it surveyed, all but 6 of the 111 residing CEOs were men.

Analysis of the career paths of the 92 CEOs who had been promoted to their positions revealed that women tend to have higher leadership positions in roles that are relatively unlikely to be promoted to the level of CEO. It also indicated that a majority of CEOs had previously occupied leadership positions in one of three fields: namely, in line of business, finance or operations.

SPONSORED

Among these three arenas where CEOs are typically groomed in advance of their promotions, women are largely underrepresented. The report demonstrates that financial services firms looking to improve their quota of women CEOs will ultimately need to invest in recruiting female talent in leadership positions that fall under the umbrella of these three fields.

Women founded and co-founded fintech startups versus men-led startups

Source: Deloitte

When it comes to the fintech industry, slow yet promising improvements have been observed in terms of increases in the number of women-led startups over the years.

Since the beginning of this decade, global startups founded and co-founded by women have risen at a slightly faster rate as compared to startups founded by only men. They reached 369 in 2019, growing eight-fold while men-founded startups grew by seven-fold.

Fintechs with women founders and co-founders account for 12.2 percent of total startups. This is an improvement from 10.9 percent a decade earlier.

Startups with women only founding teams comprised an abysmal 3.1 percent of the total pool in 2019, a slight improvement from 2.4 percent in 2010.

0 comments on “4 charts on gender equity this International Women’s day”

10-Q, Member Exclusive

Can MoneyLion gain ground in the long term on the strength of its underlying businesses?

  • MoneyLion's Q4 2022 results show a profitable December -- however, the firm saw net losses for the quarter and year.
  • Opportun reported its fourth quarter 2022 results on Monday. In the revenue line, the company reported $261.9 million, missing estimates by $1.1 million.
Sara Khairi | March 20, 2023
10-Q, Member Exclusive

Is Dave a ‘fintech survivor’ after all?

  • Dave's Q4 2022 results show that this might just be the end of a rocky road for the neobank -- meanwhile, it is bracing for 2023 head-on.
  • Apple's shares regained momentum last week following Goldman Sachs analysts' optimistic outlook -- based on the firm's new product innovation and margin expansion driven by services.
Sara Khairi | March 13, 2023
Member Exclusive

Tearsheet Pro Live #1: ChatGPT, fact and fiction: What FIs should know about the future

  • In this first Tearsheet Pro Live session, editor Zack Miller interviews a Stanford professor and a machine learning scientist about generative AI.
  • Dev Patnaik and Moses Guttmann share their perspectives on the future impact of technology like ChatGPT on financial services.
Zachary Miller | March 09, 2023
10-Q, Member Exclusive

Less focus on Bitcoin and more Cash App inflows — a sound strategy for Block?

  • A week ago, Block reported its Q4'22 results with earnings missing expectations but surpassing gross profit from a year ago.
  • The surge in the stock is owing to the firm’s strong gross profit growth, which was up 40% in Q4 2022 compared to the prior year.
Sara Khairi | March 07, 2023
10-Q, Member Exclusive

Coinbase beats revenue expectations, but will its struggles end anytime soon?

  • Last week, Coinbase reported its Q4'22 results – while the exchange has been experiencing a period of financial hardships, it continues to pivot to subscriptions and generate income through charging fees on transactions.
  • The subscription and service revenues grew 34% to $283 million, accounting for almost 50% of overall revenue for the quarter -- keeping the company afloat.
Sara Khairi | March 02, 2023
More Articles