Women in Spain’s Fintech Industry: A Call for Change

Spain’s fintech industry was envisioned as a beacon of innovation and inclusion, yet a glaring gender disparity persists. Despite the potential for growth and diversity, women remain strikingly underrepresented in this dynamic sector.

The Stark Statistics

According to the OECD report "Bridging the Finance Gap for Women Entrepreneurs", only 1 in 10 entrepreneurs in the fintech sector is a woman. This figure represents a decline from 14% in 2018, highlighting a troubling trend in an industry that was supposed to champion inclusivity. The OECD warns that this regression undermines Spain’s broader economic goals, emphasizing that eliminating gender gaps is crucial for enhancing competitiveness.

Legislative Efforts and Challenges

In 2022, Spain introduced two flagship laws—the Start-up Law and the Create and Grow Law—aimed at boosting entrepreneurship and attracting foreign investment. These laws were designed to simplify business creation and provide tax benefits. However, the OECD points out that political and geopolitical uncertainty has hindered the effective implementation of these initiatives. The dissolution of the High Commissioner for the “Spain Entrepreneurial Nation” in early 2023 has left national policy without a clear direction, stalling progress.

Female Leadership: A Slow Climb

The VI FinTech Women Network Report (2023) by AEFI reveals that while there has been some improvement in management representation, women’s entrepreneurship in fintech remains limited. Key findings from the report include:

• Only 1 in 10 entrepreneurs in the fintech sector is a woman.
• 61% of women report needing to exert more effort than their male counterparts to achieve their current professional positions.
• 45% of women feel they have had fewer opportunities than men in their work environments.

This regression is largely attributed to the COVID-19 pandemic, which disproportionately affected women, leading many to abandon their careers to care for family members.

Barriers to Leadership in Fintech

The OECD and AEFI identify several structural obstacles that hinder women from accessing leadership roles in fintech:

1. Fear of Failure: Women often exhibit a higher aversion to failure compared to men, which can deter them from pursuing entrepreneurial ventures.

2. Limited Access to Investment: Female founders frequently report facing inequality in funding opportunities compared to their male counterparts. Studies indicate that male investors are less likely to support female-led projects.

3. Lack of Networking Opportunities: Many women cite a scarcity of safe spaces to connect with investors and industry leaders, which can stifle their growth.

4. Absence of Role Models: The fintech ecosystem lacks visible female role models, making it challenging for aspiring women entrepreneurs to envision their success.

5. Bureaucratic Delays: Lengthy regulatory processes can discourage small founders, particularly women who may already face additional challenges.

Recommendations for Change

The OECD report concludes that Spain must create an environment conducive to the emergence of a competitive landscape for digital financial services while reducing bureaucratic and regulatory obstacles. Key recommendations include:

• Proportional Licensing Requirements: Applying a principle of proportionality to licensing requirements, recognizing the differences between B2B and B2C firms.

• Public-Private Investment Mechanism: Establishing a mechanism for women entrepreneurs akin to the UK’s Future Fund initiative to enhance funding opportunities.

• Visibility and Mentorship: Promoting visibility and mentorship for women in fintech to foster a supportive network.

The OECD emphasizes that regulatory agility is essential for the sustainable development of this dynamic sector.

As Spain repositions its digital economy post-2025, the progress on women’s inclusion will be pivotal in determining whether its fintech revolution can truly deliver benefits for all.