Women and Finance were always treated and considered two distinctly non-related terminologies in the past. In the recent few decades, a very meagre number of women have entered the man-dominant financial world. We can see women offering their services in almost every field of life, whether technical, technological, medical, or any other.
However, the number of such productive women is still minimal. Even in the wake of advancements in the 21st century, being a female in the finance world is troublesome against men. Let’s dig a little deeper into the facts and reasons behind the lesser role of women in Finance.
Basic Facts Behind Lesser Role of Women in Finance
Whenever it comes to pursuing their lifelong career, women never get even closer to choosing Finance as their career. They believe finance-oriented careers are actually male-dominant and can not be easily breakthrough by women. Below are some general reasons for the lesser role of women in Finance.
Women Field Fewer MBA Students
Carried away by the stereotype that Finance is for men, the number of females in business schools is deficient. Although women have been empowered for the last few days, their participation is increasing in almost every sector of life; however, their number of MBA enrolments has reached a stalemate.
A study by The Forté Foundation, a non-profit consortium of top business schools, shows that the number of female students in the business discipline has increased in the past few years by over 60%; it is, although, constantly declining with every passing year. It fell by 7% and 9.1% in 2018 and 2019, respectively.
Lack of Mentors and Role Models
Most of the women who want to pursue their careers in Finance consider the lack of mentorship and role models as significant causes of their malnourishment in the world of Finance. According to research, if there are proper monitoring programs for women, their representation in managerial positions can increase by about 9% to 24%.
Additionally, female mentors can help females grow in the finance industry by assisting them in learning interpersonal skills, emotional intelligence, and making corrections. Effective communication skills can also play like a ladder to help females become businesswomen and C-suite position holders in the corporate sector.
Balance Work and Family Life
There is a common belief that women find it harder to balance full-time employment and family life compared to male employees. They offer full-time services in the office yet have to take care of their homely responsibilities. This imbalance in work and family life has always been a significant setback for women to step into the corporate sector.
Feeling That the Field Is Too Competitive
Most women are always doubtful about their capabilities in the field of Finance and accounting. They find Finance highly competitive and hence turn away from choosing it as a career. This type of mindset often makes them underestimate their capabilities. That’s one reason women avoid accepting executive positions such as CFO or CEO in the workplace.
How Many Women Are There in Finance?
According to research, women are more hard-working than men. That is one of the facts that women have outnumbered men as workers in the finance industry in the past few years. Their number, however, decreases with every rank up in the hierarchy.
According to research conducted by McKinsey in early 2021, the number of women in Finance comprised 52% of the workforce at the lower pay scale. But the representation decreased with increasing position. In the C-suite, white women accounted for only 23% of executives and women of color another 4%.
Women in Investment Banking
“It’s not really relevant whether you are a man or a woman in investment banking. You are one of the team from the beginning”, said Lorraine Connell, UK investment banking at Barclays.
It does not matter if you are a man or a woman; you will face almost similar challenges in the field of Finance. Women stereotypically consider investments in banking or stepping into Finance male stuff, meaning that one should have man-like qualities to be an entrepreneur, which is not true at all.
Some women are heading up the ladder to reach the positions of being top industrialists or financial influencers. Numerous women have changed the preconception of women in investment banking. They should be followed and considered as mentors and role models by women who want to pursue corporate roles in their careers.
To name a few of such women, we have Anu Aiygenar, Catherine Bessant, Joyce Chang, Dawn Fitzpatrick, Susan Huang, Kim Posnett, Katia Bouazza, Miranda Zhao, Heather Mitchell, and Mellet Brown. Most of whom are chief directors, CEOs, and CFOs.
100 women in Finance
We have and are witnessing the worldwide struggle to empower women in every field of life. Women are believed to be holding an unavoidable share in the world’s human resources. Therefore, empowering them is equivalent to empowering the world. One such organization that is constituted explicitly for the cause is 100 Women in Finance.
The Mission
100 Women in Finance is an international organization is primarily to promote gender equality, diversify the world of Finance in terms of gender, raise visibility, and encourage women to be independent and successful versions of themselves. 100 Women in Finance aims to enable women to succeed in choosing a path of success for themselves.
Vision 30/40
100 Women in Finance operates on a simple principle called the 30/40 vision. It means that 30% of the senior investment roles and executive committee positions in the finance sector should be occupied by women by 2040.
The Final Word
Based on the information provided in this article, it is evident that women have some genuine reasons to play at a low rate in the battle of Finance. However, there is room for improvement for every woman to get out of her comfort zone and lighten the palace of Finance with her charismatic glow. Proven by many women for many years, all the reasons that deter their flight to success can be tackled and taken care of.
