Gender Diversity in Fintech: Bridging the Gap
The Current Landscape
The fintech industry has made strides in improving gender diversity, particularly at the middle management level. However, significant disparities remain, especially in senior leadership roles. While there is a noticeable increase in women occupying mid-to-senior individual contributor positions—particularly in marketing, analytics, and design—fields like product development and engineering continue to be predominantly male. Alarmingly, only 4% of fintech CEOs are women, highlighting the urgent need for change.
This statistic is not just a number; it reflects the systemic barriers that women face in advancing to leadership positions within the fintech sector. To bridge this gap, a comprehensive strategy is essential—one that redefines leadership perceptions and enhances mentorship and sponsorship opportunities within organizations.
Main Challenges
Barriers to Entry and Career Progression
Despite the increased representation of women in middle management, barriers to career advancement persist. Research from Gartner indicates that companies with diverse and inclusive leadership teams tend to exceed their financial targets. Yet, many fintech firms lag in this area. According to an EY report, less than 20% of fintech companies have a female senior executive.
Some fintech companies, like Monzo and Starling, are showing promising signs of change, with lower female staff turnover compared to traditional banks. At Wise, over half of the workforce is female, with women holding 26% of senior leadership roles. These companies often provide more flexible working arrangements than legacy financial institutions, which can be a significant factor in attracting and retaining female talent.
However, when compared to other sectors, such as edtech, where approximately 30% of founders are women, fintech still has a long way to go. The higher representation in edtech creates an environment that nurtures female talent from the outset, attracting more women than in other tech spheres.
Cultural and Systemic Factors
A critical obstacle for aspiring female leaders is the traditional definition of leadership traits, which often skews male. Qualities such as assertiveness, confidence, and strong opinions are typically associated with male leaders, leading to the undervaluation of women who may exhibit different leadership styles.
As a mentor in the Women in Product community, I have witnessed firsthand the challenges faced by talented female professionals who struggle to receive promotions despite their proven track records. The prevailing male perspective on leadership often overlooks their potential, creating a cycle that perpetuates the gender gap.
Steps to Overcome Barriers
Implementing Inclusive Hiring Practices
To foster gender diversity in leadership roles, fintech companies must redefine what constitutes a leader. Women bring valuable skills such as empathy, emotional intelligence, and a collaborative approach to leadership. While assertiveness and strategic focus are important, they should not be the sole indicators of effective leadership.
By recognizing and valuing diverse leadership styles, fintech companies can create a more inclusive environment that supports women’s advancement into leadership positions. This balanced approach ultimately benefits the organization as a whole.
Fostering a Supportive Work Environment
A study by McKinsey highlights the challenges women face in the workplace, revealing that for every 100 men promoted from entry-level to manager, only 87 women achieve the same. In the current fintech landscape, women often feel pressured to adopt traditionally male qualities to advance their careers, leading to damaging dynamics.
To combat this, organizations must acknowledge the diversity of leadership styles and create space for individuals to express and develop their unique qualities. This supportive environment is crucial for fostering talent and ensuring that all employees have the opportunity to thrive.
Empowering Women Through Mentorship and Leadership Development
Mentorship and sponsorship are vital for advancing women’s careers, providing guidance, support, and advocacy. Establishing formal mentorship programs where experienced leaders assist women in mid-level positions can help them develop their skills and leadership styles.
Sponsorship is equally important, as it provides visibility and advocacy for women within the organization. Women’s networks can also play a crucial role, offering platforms for sharing experiences and supporting each other’s growth. For instance, at Wise, the marketing function has a high percentage of women, facilitating regular meetings with senior leadership to discuss challenges and develop support strategies.
Additionally, initiatives like the Marketing Public Speaking Club help women prepare for public events and build their profiles outside the company, empowering them to share their voices and contributions confidently.
Final Thoughts
Bridging the gender gap in fintech is essential for achieving equity and enhancing organizational performance. Companies with diverse leadership teams tend to achieve better returns, making it imperative to address the disparities that still exist, particularly in higher positions.
By redefining leadership concepts and fostering an inclusive environment, fintech stakeholders can tap into the valuable skill sets that female leaders bring to the table. This multifaceted approach, which includes robust mentorship and sponsorship programs, will not only benefit women but also enrich the fintech industry with a broader range of perspectives and a healthier work culture for everyone.
About the Author
Asya Kuznetsova is a product and growth expert with over a decade of experience in FinTech and EdTech. She has held significant roles at top firms like PwC and Yandex. Currently, she is a Senior Product Manager at Wise, leading the product growth unit and managing a team that drives significant user acquisition and organic growth. Asya is also a featured speaker at Product School, advocating for transformative change and inspiring the next generation of Product Managers.