Fintech has a gender problem – here’s why you should care

Fintech and the Triple Glass Ceiling: A Report on Gender Inequality in the Industry

Fintech (financial technology) is a rapidly growing industry that encompasses technology-enabled financial services innovation. From payments to banking and investments, fintech has become an integral part of our daily lives. In 2023, the industry attracted a staggering US$51.2 billion (£40.5 billion) of global investment (source).

However, despite its financial success, fintech is plagued by a significant absence of women in leadership roles. Our research, published on March 5, reveals the striking underrepresentation of women in guiding this booming industry (source).

The Triple Glass Ceiling in Fintech

Fintech operates at the intersection of finance, technology, and entrepreneurship. Unfortunately, gender inequalities in each of these sectors combine to form what we call a “triple glass ceiling” in the fintech industry. The longstanding male dominance, continued privileging of masculinity, and rigid gender stereotypes hinder meaningful progress and change in fintech.

Underrepresentation of Women in Fintech

Women are severely underrepresented in leadership positions within fintech. Only 4% of CEOs, 18% of executive committee members, and 7.7% of entrepreneurs in the industry are women. Notably, the well-known fintech company Revolut does not have a single woman on its executive leadership team (source).

The Sexist Culture in Fintech

The sexist culture prevalent in the financial services sector has permeated into fintech. Our research, which involved interviews with female and male fintech professionals, uncovered stories of recruiters being reluctant to hire women due to assumptions about their personal lives and commitment to the business. Women often face dismissive attitudes and their ideas are undervalued compared to their male peers. The masculine language used in fintech job descriptions further reduces the pool of female candidates (source).

Barriers to Networking and Career Advancement

Networking plays a crucial role in career advancement within fintech. However, it remains a male-dominated game, excluding many women who have caring responsibilities. Informal networking often occurs outside of core working hours, further disadvantaging women. These barriers hinder their access to opportunities and professional growth.

Gender Disparities in Technology and Entrepreneurship

Deep-rooted stereotypes discourage girls and women from pursuing science, technology, engineering, and mathematics (STEM) subjects. Consequently, technology careers remain associated with men. Only 1.5% of chief technology officers or chief information officers in fintech are women, while 37% of chief marketing officers are women. In the entrepreneurial realm, women face significant barriers when accessing funding, resulting in less than 2% of venture capital funding going to female-founded companies in Europe in 2023 (source).

The Importance of Diversity in Fintech

Fintech claims to champion disruption, inclusion, and progression. However, true innovation can only be achieved through diversity. Building and developing products based on diverse perspectives and experiences is essential to meet the needs of a diverse population. Fintech’s lack of diversity contributes to inequality and hinders the realization of its potential economic and social benefits.

A Call for Change

Our findings should serve as an alarm call to the fintech industry and society as a whole. As fintech users, we have the power to demand change and advocate for a more inclusive and equitable workplace. Shattering the triple glass ceiling in fintech is a challenging task, but failure is not an option.

Everyone has a role to play in creating a more diverse and inclusive industry. Pressure from all sides is necessary to bring about meaningful change. By recognizing and addressing gender inequalities, we can work towards a future where fintech truly reflects the needs and experiences of all individuals.

SDGs, Targets, and Indicators

SDGs Addressed:

1. SDG 5: Gender Equality
2. SDG 8: Decent Work and Economic Growth
3. SDG 10: Reduced Inequalities
4. SDG 17: Partnerships for the Goals

Targets Identified:

• Target 5.5: Ensure women’s full and effective participation and equal opportunities for leadership at all levels of decision-making in political, economic, and public life
• Target 8.5: By 2030, achieve full and productive employment and decent work for all women and men, including for young people and persons with disabilities, and equal pay for work of equal value
• Target 10.2: By 2030, empower and promote the social, economic, and political inclusion of all, irrespective of age, sex, disability, race, ethnicity, origin, religion or economic or other status
• Target 17.17: Encourage and promote effective public, public-private, and civil society partnerships, building on the experience and resourcing strategies of partnerships

Indicators:

• Indicator 5.5.1: Proportion of seats held by women in national parliaments and local governments
• Indicator 8.5.1: Average hourly earnings of female and male employees, by occupation, age group, and persons with disabilities
• Indicator 10.2.1: Proportion of people living below 50 percent of median income, by sex, age group, and persons with disabilities
• Indicator 17.17.1: Amount of United States dollars committed to public-private and civil society partnerships

Analysis:

1. Which SDGs are addressed or connected to the issues highlighted in the article?

The issues highlighted in the article are connected to the following SDGs:

• SDG 5: Gender Equality – The article discusses the underrepresentation of women in leadership roles within the fintech industry and highlights gender inequalities in finance, technology, and entrepreneurship.
• SDG 8: Decent Work and Economic Growth – The article mentions the need for equal opportunities for women in fintech and highlights the challenges faced by women in accessing funding for their startups.
• SDG 10: Reduced Inequalities – The article discusses the triple glass ceiling that hinders progress and change in fintech, which is a result of gender inequalities in finance, technology, and entrepreneurship.
• SDG 17: Partnerships for the Goals – The article emphasizes the need for collaboration and partnerships to address the gender inequalities in the fintech industry.

2. What specific targets under those SDGs can be identified based on the article’s content?

Based on the article’s content, the following specific targets can be identified:

• Target 5.5: Ensure women’s full and effective participation and equal opportunities for leadership at all levels of decision-making in political, economic, and public life – The article highlights the underrepresentation of women in leadership roles within the fintech industry.
• Target 8.5: By 2030, achieve full and productive employment and decent work for all women and men, including for young people and persons with disabilities, and equal pay for work of equal value – The article discusses the challenges faced by women in accessing funding for their startups and the need for equal opportunities in fintech.
• Target 10.2: By 2030, empower and promote the social, economic, and political inclusion of all, irrespective of age, sex, disability, race, ethnicity, origin, religion or economic or other status – The article highlights the gender inequalities in finance, technology, and entrepreneurship that hinder meaningful progress and change in fintech.
• Target 17.17: Encourage and promote effective public, public-private, and civil society partnerships, building on the experience and resourcing strategies of partnerships – The article emphasizes the need for collaboration and partnerships to address the gender inequalities in the fintech industry.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

The article mentions or implies the following indicators that can be used to measure progress towards the identified targets:

• Indicator 5.5.1: Proportion of seats held by women in national parliaments and local governments – This indicator can be used to measure the representation of women in leadership roles within the fintech industry.
• Indicator 8.5.1: Average hourly earnings of female and male employees, by occupation, age group, and persons with disabilities – This indicator can be used to measure equal pay for work of equal value in the fintech industry.
• Indicator 10.2.1: Proportion of people living below 50 percent of median income, by sex, age group, and persons with disabilities – This indicator can be used to measure the economic inclusion of women in the fintech industry.
• Indicator 17.17.1: Amount of United States dollars committed to public-private and civil society partnerships – This indicator can be used to measure the commitment and investment in partnerships aimed at addressing gender inequalities in fintech.

Table: SDGs, Targets, and Indicators