Fintech (financial technology) is all over the place. It is an umbrella term for innovations in technology-enabled financial services.
Even in case you have not heard of fintech, you most likely use it for payments, banking or investing. Klarna? ClearPay? Revolut? Monzo? They are all a part of an industry that draws the astonishing $51.2 billion (£40.5 billion) of investment worldwide in 2023.
However, while fintech is awash with money, it’s characterised by a scarcity of ladies, especially in leadership positions. Our researchpublished on March 5, reveals a striking underrepresentation of ladies leading this booming industry.
Women make up just 4% of CEOs, just 18% of executive committee members and just 7.7% of entrepreneurs within the fintech industry. There shouldn’t be a single woman on it executive leadership team the famous fintech company Revolut.
Fintech is situated on the intersection of three sectors: finance, technology and entrepreneurship. Gender inequality in each of them combines to create what we call the “triple glass ceiling” within the fintech industry. Long-term male dominance, continued privileging of masculinity, and rigid gender stereotypes in each of those sectors hinder significant progress and alter in fintech.
So where are all these women?
The sexist culture still outstanding in financial services, it has been transferred to fintech. Our research, which included interviews with ladies and men within the fintech industry, uncovers stories of recruiters being reluctant to rent women because they assume they may get married, have children and be less involved within the business.
Several interviewees noted that girls are likely to work harder and push harder to realize the identical result as their male peers. However, ideas which are rejected when suggested by a girl normally gain credibility when suggested by a person. We discovered that what was valued was masculinity, not the standard of labor or idea.
Masculine language in job descriptions within the fintech industry – requiring candidates to “search” and “execute” a method – reduces the pool of female candidates. And men usually tend to be hired because they have an inclination to suit the bill masculine features followed.
Networking will be an efficient strategy to climb the profession ladder in fintech. It doesn’t matter what you recognize, but who you recognize. But networking itself is a male-dominated game. Women are sometimes excluded from networking since it normally takes place in informal spaces outside of most important working hours. And who has more caring responsibilities? Women.
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Deep-rooted stereotypes mean that women and girls still don’t receive support or encouragement to pursue science, technology, engineering and arithmetic subjects in school. So tech careers remain associated with men.
Only 1.5% of CTOs and CIOs are women – a mirrored image of the technology glass ceiling. For comparison, 37% of CMOs are women.
Startups also make up nearly all of fintech, and there the entrepreneurial glass ceiling dominates. Few women try to access funds, and people who do are less successful than their male counterparts. For example, lower than 2% enterprise capital funds went to firms founded by women in Europe in 2023.
Research shows that the enterprise capital industry does run by men. Because persons are more willing to attach with and finance similar entrepreneurs, male-led ventures are more successful.
Socially constructed gender differences reminiscent of self-confidence, risk aversion and pitching style also result in this gender questions and expectations of male behavior. Traditionally, successful entrepreneurs have been men, which has led to the event of a male stereotype of entrepreneurship and entrepreneurial success.
What does this mean for you?
Fintech does daring claims disruption, inclusion and progress. And yet, at a really basic level, how can the industry innovate by remaining the identical? If people create and develop products based on their very own frustrations and on a regular basis lives, innovation can only be truly driven by diverse individuals with different backgrounds and experiences.
Despite all of the hype, fintech shouldn’t be living as much as expectations. To recognize the needs of a various population, fintech needs more diversity in its producers. Otherwise, it contributes to inequality and wastage of potential economic and social advantages.
Our findings should function a wake-up call for those inside and outdoors the industry. Most adults within the UK use fintech daily – without even knowing. If fintech users are aware of gender inequality within the industry, they generally is a voice for change.
Everyone is responsible. Creating a more inclusive and equitable workplace will only occur when there’s pressure on the industry from all sides. Breaking the triple glass ceiling is a large challenge, but we cannot afford to fail.