With Fintech’s Gender Gap Stuck in the Dark Ages, Does the Next Generation of Women Even Want In?
In a world where technology is rapidly evolving, the financial technology (fintech) sector remains a paradox. Despite its innovative nature, the industry is still grappling with a significant gender gap. Women constitute only 28% of the fintech workforce, with less than 20% occupying executive positions. The gender pay gap, a staggering 22%, further complicates the landscape. With such daunting statistics, one must ask: do young women like my sister Holly, who is on the brink of her career, even want to enter this field?
To explore this question, I took Holly, my 22-year-old sister, to the Women in Fintech Powerlist 2024 celebration hosted by Innovate Finance. As a soon-to-be graduate, her perspective is crucial for understanding whether the next generation sees a future in fintech. We braved the pouring rain to reach the KPMG office in Canary Wharf, a towering symbol of corporate ambition.
Gen-Z Enters the Building
Upon entering the sleek, glass-and-marble skyscraper, I noticed the sparkle in Holly’s eyes. For someone yet to face the harsh realities of workplace dynamics, this environment brimmed with potential. The excitement of a young woman standing at the threshold of her career was palpable.
As we ascended to the 13th floor, we were greeted by a vibrant mix of fintech professionals, judges, and powerlisters. The atmosphere buzzed with energy, and Holly quickly found herself swept up in conversations with industry leaders. I observed closely, curious to see if she would receive the same warmth and encouragement as those with established careers.
Working the (Unworkable?) System
The panel discussion began, and I was relieved to see a founder and CEO take the stage. Iana Dimitrova, CEO of OpenPayd, shared her journey and emphasized the importance of reframing perceived weaknesses as strengths. Her message resonated with many in the room, including myself. I had often felt the need to adapt my skills to fit a mold that didn’t quite suit me, and I appreciated her call to embrace our unique qualities.
However, I glanced at Holly, who later expressed her confusion. “But I thought that’s what we were fighting against?” she said, highlighting a generational divide. While older generations often discuss confidence issues, Holly’s generation is more focused on empowerment and activism. They don’t see the need to reframe weaknesses; they want to dismantle the structures that create them.
Little Girls Are Not Born Unconfident
Research shows that men interrupt women significantly more than they do other men, which contributes to a culture that stifles female voices. Perhaps workshops on respectful communication in meetings could be a starting point for fostering confidence among women in the workplace.
Moreover, the funding landscape in fintech is starkly imbalanced. While two in five fintech startups are founded by women, they receive a mere 2.3% of the funding. This disparity is not about confidence; it’s a systemic issue rooted in sexism.
Anne Boden Vibes
Amidst the challenges, there are shining examples of success. Cordelia Kafetz, director of financial risk at Starling Bank, stood out not only for her impressive credentials but also for her commitment to mentoring young women like Holly. She spoke passionately about coding opportunities and initiatives aimed at supporting women in fintech.
Starling Bank has implemented features designed to protect and empower women, such as an app that helps partners share household responsibilities. This kind of proactive approach is what the industry needs to create a more inclusive environment.
Another inspiring figure was Nitika Vyas, who left a lucrative hedge fund job to launch Aila Money, an app aimed at helping women invest. Her mission is to change the narrative around women and money, addressing the fear that many associate with financial matters.
Optimism Required
Despite the grim statistics, Holly left the event feeling inspired. She expressed interest in coding and saw fintech as a “broad, adaptable, and versatile market.” Her enthusiasm was infectious, and it was clear that the industry still holds appeal for the next generation, even amidst the challenges.
However, the reality remains that for young women like Holly, the path to leadership in fintech is fraught with obstacles. The statistics are disheartening: 96% of CEO positions in fintech are held by men, and the funding landscape is increasingly unwelcoming for female entrepreneurs.
Yet, Holly’s optimism is a reminder that change is possible. The industry must address systemic issues, such as equal pay and representation in decision-making roles. It’s not just about creating a more equitable environment; it’s about recognizing the value that diverse perspectives bring to the table.
For those in leadership positions within fintech, it’s time to take action. Providing equal parental leave, ensuring fair compensation, and fostering an inclusive culture are essential steps toward bridging the gender gap.
As we left KPMG’s office, Holly tucked her name badge into her pocket as a keepsake, a symbol of her newfound interest in the fintech world. The industry may be struggling with gender equality, but the passion and potential of young women like her offer a glimmer of hope for a more inclusive future.