Progress and Challenges for Women in UK FinTech: A Call for Gender Parity

While strides have been made in advancing women’s roles within the UK fintech sector, significant challenges remain. The latest report by EY and Innovate Finance, titled Changing the Face of UK FinTech: From Glass Ceiling to Open Doors: Championing Equality and Career Progression for Women in FinTech, underscores the ongoing barriers that hinder gender parity.

Insights from the Research

The research involved interviews with 120 nominees from the Innovate Finance Women in FinTech Powerlist. It revealed that many top female leaders still face obstacles in their career progression. A notable 27% of respondents cited a lack of industry recognition for their contributions, while 25% pointed to non-transparent promotion processes as significant hurdles.

These findings highlight a critical need for systemic change within the fintech landscape. The report emphasizes that while some progress has been made, the journey toward equality is far from complete.

The Gender Pay Gap: A Persistent Issue

The gender pay gap remains a pressing concern across various sectors in the UK. According to the Office for National Statistics, the overall gender pay gap stands at 14.9%. However, this disparity is even more pronounced in the tech (27%) and financial services (26%) sectors. In fintech specifically, EY’s analysis estimates the gender pay gap to be around 22%.

Key factors contributing to this gap include a lack of transparency regarding pay and low female representation in higher-paying roles. The report suggests that fintech firms, regardless of size, should adopt consistent salary bands to ensure equitable hiring practices.

Recommendations for Improvement

To address the gender pay gap and enhance diversity, the report outlines several actionable recommendations:

1. Transparent Pay Culture: Firms should foster a culture of transparency around pay and openly report on the gender pay gap.

2. Equity Awareness: Women should be adequately informed about the value of equity stakes, stock options, and other compensation options available to them.

3. Upskilling Opportunities: Expanding upskilling programs for women, particularly those re-entering the workforce, is essential.

4. Diversity in Recruitment: Engaging recruiters who prioritize diversity can help create a more inclusive workforce.

5. Leadership Accountability: Leadership teams must be held accountable for achieving gender equality goals.

6. Diverse Advisory Networks: Establishing a more diverse network of advisors, especially for female founders and senior executives, can provide crucial support.

7. Leadership Development: Offering leadership development programs for promising young female workers can help cultivate the next generation of leaders.

The Current Landscape of Female Representation

Despite the progress made, women currently hold only about 10% of fintech board seats. The EY European Financial Services Boardroom Monitor indicates that the gender split among board directors in UK financial services is 39% female and 61% male. In contrast, Findexable’s 2021 Diversity for Growth Report shows that women occupy just 11% of all fintech board seats and less than 20% of executive roles.

This stark underrepresentation at the leadership level underscores the need for immediate action to foster a more inclusive environment.

Leading Voices in the Industry

Anita Kimber, partner and fintech policy leader at EY, emphasizes the importance of addressing pay inequality. She notes that while there are remarkable women in senior positions, the journey toward equality is ongoing. Kimber advocates for more extensive and transparent reporting as a critical step toward resolving these issues.

Similarly, Chris Woolard, head of UK fintech at EY, stresses that the low representation of women, particularly at the board level, is unsustainable for an industry poised for growth. He calls for accelerated change and a commitment to fostering diverse thinking within the sector.

Janine Hirt, CEO at Innovate Finance, echoes these sentiments, urging the industry to tackle the gender pay gap and promote gender parity. She believes that progressive regulation is essential for driving tangible change and building a sustainable fintech sector.

Industry Perspectives

Industry leaders are increasingly vocal about the need for change. Sheila Flavell CBE, COO of FDM Group, highlights the fintech sector’s significant contribution to the UK economy and emphasizes that addressing the gender pay gap should be a top priority for business leaders.

Joanna Kori, head of people for Encompass Corporation, advocates for an open and accessible fintech industry. She stresses the importance of executive support in implementing progressive workplace policies, such as flexible working initiatives, which can empower women to achieve their professional goals while maintaining a healthy work-life balance.

The Path Forward

As the fintech industry continues to evolve, it is crucial to ensure that women are not left behind. By addressing the systemic barriers that hinder gender parity and implementing the recommendations outlined in the report, the UK fintech sector can create a more inclusive and equitable environment for all. The potential for positive change is immense, and it is imperative that the industry seizes this opportunity to foster a diverse and thriving workforce.