Are We Really Making Progress Towards Equality of Opportunity in the European Fintech Industry?
The European fintech industry has been a beacon of innovation and growth, yet it grapples with a sobering truth: the journey toward equality of opportunity and parity remains fraught with challenges. To delve deeper into the current status of diversity within this dynamic sector, we spoke with some of the most talented and impactful female founders and senior leaders in European fintech.
Journeys into the Fintech Industry
The paths to leadership in fintech for these women are as diverse as their backgrounds. Many began their careers in traditional finance roles, while others transitioned from entirely different sectors. For instance, Vivi Friedgut, Founder of Blackbullion, made her mark after nearly a decade in wealth management. Similarly, Ayesha Ofori, Founder of Propelle, started her career at Morgan Stanley and later moved to Goldman Sachs, ultimately focusing on empowering women to build wealth through her venture.
Morgan O’Hana, Founder of Defacto, was drawn to fintech after consulting for banks, captivated by the sector’s problem-solving potential. Triin Hertmann, Founder of Grünfin, began her career in finance and tech, having been an early employee at Skype before joining the team at Transferwise (now Wise). Nina Mohanty, CEO and Founder of Bloom Money, describes her entry into fintech as “completely accidental,” starting at Mastercard and later working with various fintech firms. Ele Ward, CMO at Ctrl Alt, was part of the founding team at Cogo, where she first encountered the transformative power of fintech. Lastly, Anna-Sophie Hartvigsen, Founder of Female Invest, initiated her journey from a personal desire to empower women investors, which blossomed into a platform serving over 400,000 women.
Despite their varied backgrounds, a common thread emerges: a shared desire to innovate and improve the financial landscape.
Motivations to Work in Fintech
Each leader brings a unique perspective on what drives them in the fintech space. Vivi is inspired by technology’s potential to foster inclusivity, asserting that the full power of technology in financial services is yet to be realized. Ele and Anna are motivated by a desire to disrupt the status quo, with Ele focusing on tokenizing alternative assets and Anna aiming to close the financial gender gap.
Nina and Morgan are driven by the challenge of innovating within an industry that impacts daily life. Nina emphasizes the vast opportunity and responsibility to create thoughtful, impactful products. Triin channels her passion into sustainable investing at Grünfin, aligning financial success with environmental well-being. Despite their diverse motivations, these women share a common goal: to make a positive impact through innovation in fintech.
Impact of Lack of Diversity in Fintech
The experiences of these leaders regarding diversity in fintech vary. While some have not faced direct bias, they acknowledge the broader implications of a lack of diversity. Ele notes that the intimidating atmosphere can deter potential entrants, while Nina expresses frustration at the dismissal of diversity as “woke nonsense,” emphasizing that diversity leads to better products.
The leaders agree that a lack of diversity stifles the fintech industry’s potential. Gender differences in customer behavior necessitate teams that reflect their clientele. Ayesha finds herself justifying the existence of Propelle, while Triin proudly states that half of Grünfin’s customers are women, noting that women often require more assurance before switching financial institutions. Vivi underscores the impossibility of serving a diverse clientele without understanding their needs.
Funding challenges also loom large, particularly for underrepresented founders. Ayesha recounts having to explain her childcare situation to male investors to prove her competence as a startup founder. Vivi shares that some of her worst investor experiences have come from female investors, highlighting that representation alone is not a cure-all.
Anna points out that women are not underfunded due to a lack of capability; research shows that investments in female-led companies yield higher returns. Both Nina and Ayesha challenge venture capitalists to take concrete actions in supporting diverse founders, urging them to back their claims with metrics.
How Can We Change the Status Quo?
The female leaders we spoke with offered a range of suggestions for achieving equal opportunity and representation in fintech, emphasizing the importance of nurturing young talent and involving men in the conversation.
Morgan shared initiatives at Defacto that have proven effective, such as exclusive interview periods for women and a transparent salary grid to ensure fairness. The company has achieved nearly a 50% gender balance across teams, with flexible remote work arrangements catering to the unique challenges faced by women, particularly those balancing motherhood.
Ayesha encourages job candidates to seek employers prioritizing diversity and inclusion, advising them to research prospective companies on LinkedIn and ask about diversity initiatives during interviews.
Creating role models is another crucial step. Ele highlights platforms like The Heard, which connects female speakers in fintech to increase representation at events. Ayesha praises the Google for Startups Black Founder Fund for its positive impact on her journey with Propelle.
Increasing transparency and fostering allyship are also vital. Nina emphasizes that the responsibility for improving diversity should not rest solely on underrepresented groups. She advocates for everyone to engage in discussions about diversity, encouraging attendees at events to bring male allies into the conversation.
Finally, fostering diversity from a young age can shape future generations. Vivi is actively working with organizations to support diverse talent early in their educational journeys, while Ele supports initiatives like Founders4Schools, which connects students with work experience opportunities.
Advice for Underrepresented Individuals in Fintech
The call to action from these female fintech leaders is clear: network, build relationships, leverage unique perspectives, and continuously learn. They stress the importance of finding supportive communities that inspire and believe in potential. Nina notes that the fintech industry is particularly close-knit in Europe, making networking essential for career advancement.
By fostering inclusive environments and championing diversity, the European fintech industry can take significant strides toward achieving true equality of opportunity and representation.