On International Womens Day 2024, FinTech Global spoke to several key industry players in the FinTech space to understand some of the most pressing challenges for women in the industry.
Diversity and inclusion are running strong in the FinTech sector in 2024. Whilst increasing racial and gender diversity is permeating the market as the sector becomes more and more diverse, there is still some way to go for women.
Data from Gartner in 2023 found that investing in diversity and inclusion can be an incredible net positive for FinTech firms, with the data finding that getting diversity, equity and inclusion right can give a business 30% better performance overall. That being said, what are some of they key challenges for women in the FinTech space?
Melanie Hayes, COO of KYND, said that while she’s proud to reflect on the strides women have made in the FinTech space, there’s still much ground to cover. “International Women’s Day isn’t just a celebration; it’s a reminder of the ongoing battle for gender equality, especially in sectors like ours where the imbalance remains pronounced.
“At KYND, we are keenly aware of the significant challenges that persist for women in tech sectors, particularly cyber, and the crucial role we play in addressing these hurdles. While progress has been made, there’s still much work to be done to achieve gender balance and inclusivity within the industry.”
Hayes explained that one of the biggest hurdles women face is the underrepresentation in leadership positions. Despite many women easily possessing the same skills and expertise as their male counterparts, they often face barriers that can impede their progression into executive roles. She said that addressing this disparity demands concerted efforts to implement transparent promotion policies, mentorship programs, and leadership training initiatives.
“Moreover, the lack of visibility and recognition for women in FinTech perpetuates the gender gap,” said the KYND COO. “Combatting this requires elevating the profiles of female professionals through platforms, awards, and media representation. By amplifying their voices and celebrating their achievements, we can inspire future generations of women to pursue careers in cyber.
“Additionally, work-life balance remains a pressing concern for women in the industry, exacerbated by societal expectations and caregiving responsibilities. Flexible work arrangements, childcare support, and fostering a culture of inclusivity are essential in creating an environment where women can thrive professionally without sacrificing personal well-being.”
In KYND’s space of cybersecurity, one of the most common perceptions of the industry is that it is male-orientated – something that can deter girls from pursuing tech from an early age. In the view of Hayes, this perception needs to be addressed at the school level through targeted initiatives that promote it as a viable and welcoming career option for all genders.
“Indeed, the industry offers a wealth of opportunities beyond traditional software engineering roles, yet this diversity is often overlooked. To attract more women to the industry, it’s imperative to showcase the multifaceted nature of the sector that is not just geared towards men. Highlighting the industry’s exciting prospects, its potential for creativity and problem-solving, and its role in driving positive change can broaden girls’ perceptions of what a career in cyber entails,” Hayes concluded.
Diversity drives innovation
The percentage of women in the FinTech space still remains relatively low when considering the parity between men and women. According to the EY European Financial Services Boardroom Monitor, women hold 39% of financial services board director positions – but this stands at just 11% across FinTechs.
Stacey Jahpta, head of growth at Sybrin, underlined that while representation is low, a report by IMF Digital in 2022 found that fims with a higher share of women executives tend to earn higher revenue and receive more funding – underscoring the economic benefits of gender diversity in leadership positions.
“Diversity drives innovation and it’s the clash of differing viewpoints that sparks the kind of groundbreaking ideas capable of changing the world. Without it, we risk stagnation, recycling the same old concepts without ever truly breaking new ground,” said Japhta.
She continued, “To all the women out there feeling defeated – whether that’s being treated differently, having your voice overlooked, or not receiving fair pay – I wish you find a community that reignites your hope for change.
“Initiatives like Martha Mghendi-Fisher’s European Women Payments Network (EWPN) and African Women in Fintech & Payments (AWFP) are great examples of these types of groups. Her initiatives aim to champion diversity, not just in terms of gender but also in bringing together individuals from various cultural and professional backgrounds. It’s an encouraging group of women that support each other and share advice, and that’s something we all deserve. It’s time to widen the circle, to invite more voices to the table, and truly listen,” Japhta emphasised.
Championing diversity
Annalisa Camarillo – chief marketing officer of Quantifind – explained that in the ever-evolving world of FinTech, women are charting bold paths forward – however, they face hurdles that demand our collective attention.
She said, “Despite strides towards gender balance, the journey to equality remains challenging. Some of the biggest challenges for women in FinTech include gender bias and stereotypes, limited access to funding and investment opportunities, underrepresentation in leadership roles, and a lack of supportive networks and mentorship.
“These challenges can be addressed by promoting diversity and inclusion initiatives,implementing transparent hiring and promotion practices, providing access to funding and resources specifically tailored to women entrepreneurs, offering mentorship programs, and fostering a supportive work culture that values gender equality and work-life balance.”
Camarillo gave examples of women who are breaking the mold in FinTech and driving positive change in the industry. One such example was Anne Boden, the founder and CEO of Starling Bank, who the Quantifind CMO cited as being instrumental in revolutionizing the banking sector with innovative digital banking solutions.
Another example given was Adena Friedman, the president and CEO of Nasdaq, who Camarillo stated has played a pivotal role in advancing tech-driven solutions and promoting diversity within the financial services industry.
“These trailblazing women serve as role models and advocates for gender equality, challenging the current paradigm and paving the way for more opportunities and representation for women in FinTech. Their leadership and accomplishments highlightthe transformative impact that empowered women can have on reshapingthe landscape of the FinTech sector,” Camarillo said. She added, “At Quantifind, equality, mentorship, and supportive work culture areinherent in the company values. We lead internal and external women in risk collectives to provide a safe, growth-focused forum for women. More organizations have to walk the talk to see a significant change in the FinTech space. Together, let’s celebrate the pioneers andcommit to creating a future where every woman has the opportunity to thrive and leave an indelible mark on the industry.”
Still some way to go
Zaliia Gindullina, head of business development at WealthTech company Kidbrooke, empahsised her belief that the FinTech industry has not done enough to overcome the challenges for women in the sector.
She commented, “Many diversity and inclusion programmes in the financial industry still have a predominantly marketing angle – many awards do not highlight the successful policies the industry implements but are given for untransparent reasons. The childcare penalty remains unaddressed, and women dominate the speaker slots only in female-specific events that men do not attend.
“I believe the industry should stop exploiting the diversity agenda for marketing reasons and try to address the issues head-on.”
To deal with these disparities, Gindullina suggests three key pathways to greater equality. First, she suggests helping young mothers return to work after childbirth and create an encouraging environment for fathers to take their parental leaves.
Secondly, Gindullina calls for organisations to develop events where men get to listen to female experts speaking. “That would require encouraging women to share their expertise and not labelling the events as “female-specific” so half of the audience doesn’t come,” she said.
Following on from this, firms should talk about the policies that work. “It is a notorious myth that diversity and inclusion simply require shoving different people into one room to work.
“It is a challenging endeavour and one needs to appreciate it – it involves discussion of various, sometimes conflicting viewpoints on the matters, it implies a departure from comfortable ways the organisation has operated before and consideration of matters that weren’t necessarily considered important previously. Diversity works when nobody feels like an outsider – and there is still a long way to go for women not to feel that way in Fintech,” said Gindullina.
Cognitive diversity
Linda Middleditch – chief product officer at Regnology – offered her view that most companies have a proactive approach to ensure diversity in gender or ethnicity in their hiring and promotions process. To ensure this is possible, Middleditch said there also needs to be a focus on ensuring all groups are represented to ensure a wide candidate pool at every level.
Middleditch highlighted she was a ‘passionate advocate’ for STEM initiatives introducing coding to girls early on in school, and supported in other ways educationally for careers in tech.
In addition, the Regnology CPO said she would like to see more return-to-work schemes that encourage women to take a break to raise children to return so that invaluable experience and unique skill sets are not lost.
She explained, “I have often pointed out that negotiating with a toddler to get him to put his socks and shoes on to go out is incredibly tough. Patience and negotiation are transferable skills. I have often found it very useful when dealing with high-pressure, difficult scenarios on the trading floor, especially when dealing with traders who have been known to throw a tantrum or two.”
Middleditch asked though, however, does this really result in a diversity of thinking of just a diversity of looks?
“Cognitive diversity moves away from the traditional diversity movement and focuses more on a diversity of thinking, in my opinion, this is where you get the most success. Cognitive diversity strengthens our ability to deliver pioneering solutions that address the challenges our clients face today.
“My background in both financial services and technology has helped me think about the importance of cognitive diversity in other ways, too.
“I see cognitive diversity – as well as other forms of diversity – as an important quality that enables us to create and innovate, which ultimately benefits our clients. When you have a team of people who are thinking differently, you get better results because they’re coming at it from different angles. My job as a leader is to make sure everybody sees the value in what everyone else is doing – this is incredibly rewarding if you get it right,” said Middleditch.
Ongoing challenges
In the opinion of Maygan Voros, senior product manager at ACA, FinTech is one of the most challenging industries for the female population. “It combines the two most heavily male-dominated industries into one unique market, and because of that, it inherently brings in biases when hiring new employees, promoting individuals and investing in ideas.
Voros noted that this bias can be unintentional, however individuals tend to hire employees that they can connect with or relate to, and it makes it hard for females to make space for themselves when many of the leadership and applicants are male. In addition, women still make up a minority in all STEM-based jobs – 30% of the FinTech industry involves women but only over 10% of the leadership. “Adding in the pay gap that still exists between men and women the Fintech world is not the most appealing for women to enter,” she said.
How can such an issue be fixed? “This can be changed through firms putting a greater focus on hiring females. Promoting environments that are inclusive of benefits and lifestyles that women favour. If more women are in leadership roles it can help encourage the next generation to bridge the gap in traditionally male-based industries,”.
Voros concluded by stating that if FinTechs can invest in helping leadership recognise their biases in a way that doesn’t make them forced to hire females but encourages the idea that a diverse workforce can help boost thework environment and business decision making process, this can go a long way in starting to shift the gender imbalance in the sector.
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