Financial Services Industry Lacks Female Leaders

Financial Services Industry Lacks Female Leaders
13.06.2016 10:30 am

Financial Services Industry Lacks Female Leaders

IT Innovations

Globally, only one-fifth of boards and 16 percent of executive committees in financial services are comprised of women, according to the Women in Financial Services report by global management consultancy Oliver Wyman. This is only a slight improvement in both categories since the report was last published in 2014.

Oliver Wyman notes that at current progress, it will take more than 30 years (until 2048) for executive committees in the financial services industry globally to reach 30 percent female representation (the level at which research suggests a minority’s voice comes to be heard). Currently, women have the highest representation on executive committees in Norway and Sweden, with Japan and South Korea needing the greatest improvement.

The report includes an analysis of 381 financial services organizations in 32 countries, a survey of 850 financial services professionals around the world and interviews of more than 100 senior female and male leaders.

“The industry is far from where it should be on gender balance. We hope that this second report will advance the discussion further – delving deeper into it, raising awareness and supporting much needed change in the industry,” said Ted Moynihan, Managing Partner of Financial Services at Oliver Wyman. “The low representation of women on executive committees in particular is a problem. An organization’s key business and strategic decisions are made by its executive committee and they are also highly visible, both internally and externally, making them effective as role models and sponsors – and essential for driving business success.”

Of additional concern, female executives in financial services are nearly 30 percent more likely to leave their employer than are their peers in other industries. The data and responses suggest that many women face a mid-career conflict and a less attractive ‘career trade-off’ than men – with insufficient flexible working hours and support for family responsibilities, persistent views of shortcomings regarding promotion and equal pay, and unconscious bias.

“Diversity must be seen as a commercial imperative rather than just as part of corporate social responsibility or fairness in the workplace,” said Astrid Jaekel, Oliver Wyman Partner and report author. “Gender balance provides access to the full talent pool, better decision making by bringing together different perspectives, improved services to customers by better representing them, and a stronger economy. Organisations need to advance women by offering bolder structural solutions to the mid-career conflict outlined in this report, creating the right working arrangements and fostering more profound cultural change.”

The report also includes a series of shorter articles on:

  • Areas of particular concern (Germany and Switzerland, asset management and risk functions).
  • Success stories with more women in leadership positions (the public sector).
  • Areas where a new dynamic may be emerging (China’s Fintech sector and millennial women in the US).
  • Specific aspects of diversity (pay equity, leadership styles).
  • How the industry can move forward (a call for action by 30% Club).
  • Financial inclusion of women (based on a roundtable discussion conducted in collaboration with Women’s World Banking).

Related News

Sinch and Wavy Join Forces to Accelerate Innovation and Drive Growth in Latin America

Sinch AB (publ), a global leader in cloud communications for mobile customer engagement, has agreed to combine with Wavy to advance innovation globally and to build a leading... Read more »

Businesses can now apply for a Monzo Business Account

Monzo has announced today that it is launching free and premium business accounts. From today, businesses can apply for a Monzo Business Account for £5 per month or a Business... Read more »

Bitfinex & Tether CTO to reveal "The Story of Tether” during an industry-first keynote at the CryptoCompare Digital Asset Summi

Tether has fuelled the growth of digital assets since it was founded in 2014 and today accounts for over 75% of all Bitcoin trading volume. At London’s ... Read more »

Abacus Group Announces Record Revenue and Client Growth in 2019

 Abacus Group, a leading provider of hosted IT solutions and services for alternative investment firms, today announced record accomplishments in 2019, as the company reached... Read more »

Reshaping the Financial Sector of the Middle East with Finnovex Middle East 2020

Advanced technology and innovation have forever disrupted business operations of the past. With changing trends and customer expectation, product offerings, service and... Read more »

Market Logic and Visa Win 2020 BIG Innovation Award

Market Logic announced that Visa & Market Logic have been named a winner in the 2020 BIG Innovation Awards presented by the Business Intelligence Group.

Read more »

Magazine
ALL
Free Newsletter Sign-up
+44 (0) 208 819 32 53 +44 (0) 173 261 71 47
Download Our Mobile App
Financial It Youtube channel