Bridging the Gender Gap in Fintech: Insights from Alexandra Roddy

It’s no secret that the fintech industry faces a significant gender gap. With both technology and finance traditionally viewed as male-dominated fields, the statistics are stark. A 2017 study revealed that less than 30% of the fintech workforce in the UK was comprised of women. This disparity highlights an urgent need for fintech companies to take proactive steps in supporting and empowering women within the sector.

The Voice of Change: Alexandra Roddy

One of the prominent advocates for gender equality in fintech is Alexandra Roddy, the Chief Marketing Officer and Executive Vice President of Partnerships at Zafin. With over 20 years of experience in marketing, technology, strategy, and product development across leading financial institutions like Bank of the West and Wells Fargo, Roddy brings a wealth of knowledge to the conversation. She emphasizes the importance of addressing the gender imbalance in fintech and shares actionable insights on how the industry can foster change.

The Evolution of Fintech

The term “fintech” was first coined in 1993 at Citicorp’s Financial Services Technology Consortium, but it didn’t gain traction until the mid-2010s. By 2018, the global fintech market was valued at approximately $130 billion, with an expected annual growth rate of 25% through 2022. The fintech industry exists to transform financial services, which constitute over 10% of the S&P. Fintechs drive innovations that enhance and revolutionize financial services, making them more accessible and efficient.

The Importance of Inclusivity

Despite its innovative nature, the fintech sector is at risk of replicating the gender imbalances seen in traditional finance and technology. Current statistics reveal that women hold only 7% of founder positions, 14% of board director roles, and 19% of C-suite seats in fintech companies. Furthermore, women make up less than 10% of executives in venture capital firms that fund these fintechs. Alarmingly, only 1.3% of the $40 billion invested in U.S. fintechs in 2019 went to companies with female founders.

This underrepresentation is particularly concerning given that women constitute a significant portion of fintech consumers—arguably 50% of any fintech’s target market. The disconnect between the gender of fintech leaders and their customer base underscores the need for a more inclusive approach.

Steps Toward Gender Parity

Roddy advocates for concrete actions that fintechs can implement to address the gender imbalance:

1. Diverse Candidate Slates

For every new opportunity, fintech companies should ensure a diverse slate of candidates. This practice not only promotes inclusivity but also enriches the decision-making process.

2. Acknowledge Unconscious Bias

Recognizing that unconscious biases exist is crucial. Both men and women may inadvertently discount the authority and credibility of female candidates. Addressing these biases is essential for fostering a more equitable workplace.

3. Rethink Hiring Criteria

Instead of adhering to preconceived notions about the “best” candidate, companies should consider a broader range of skills that contribute to success, such as communication, collaboration, and empathy. These skills are often equally distributed across genders.

4. Cultivate an Inclusive Culture

Creating an inclusive culture involves supporting spaces that encourage diverse voices and perspectives. Companies should actively amplify contributions from underrepresented individuals and ensure that all voices are heard and valued.

5. Coaching and Mentorship

Fintechs should invest time in coaching those who have been historically underrepresented. Providing clear guidelines on engagement and decision-making processes can empower these individuals to contribute effectively.

6. Leadership Diversity

Reassessing the composition of the executive team can yield significant benefits. Bringing in strong female leaders from other industries can introduce fresh perspectives and catalyze success.

7. Diversify the Board

Diverse boards are known to make better decisions. Fintech companies should prioritize diversity at the board level to enhance governance and strategic direction.

8. Focus on Customer-Centricity

With half of the customer base being female, fintechs should prioritize a customer-centric approach. Understanding and addressing the needs of female consumers can lead to improved business outcomes.

The Broader Impact of Diversity

The data consistently shows that diversity in business leads to better insights, more prudent decision-making, and stronger outcomes. As the fintech industry continues to grow, it is imperative that it embraces a more inclusive future. By taking actionable steps to bridge the gender gap, fintechs can not only enhance their internal culture but also better serve their diverse customer base.

In the rapidly evolving landscape of fintech, the future must be more inclusive and representative of the society it aims to serve.