What Are Some of the Biggest Challenges Women Face in the Financial Sector Today, and How Can Firms Address Them?
- Natalie Cramp, partner at JMAN Group
- 11.03.2025 07:00 am #WomenInFinance #GenderEquality
"A major issue is that women still aren’t really being heard. This isn’t a problem that is unique to the financial sector but it is certainly more acute due to the profession's greater gender imbalance. There’s plenty of talk about diversity, but in many instances the conversation is dominated by men. I know more often than not their intentions are good, but change will only happen if they stop talking for a moment and listen to what women who actually experience the industry say what needs to happen.
“The financial profession is known for being particularly demanding with working long and irregular hours the norm. The intent is generally there with well-meaning policies, but the reality is often not in execution, expectations - explicit or implicit. As women still do the majority of childcare, this can create an impossible work-life imbalance, not to mention trying to maintain this whilst dealing with the impacts of pregnancy or women’s health conditions can be incredibly challenging. Many women often have to choose between progressing their career and their family. This problem can be largely solved by companies taking a more modern approach to working. Such as by embracing hybrid working, job sharing and flexible hours, and most importantly genuinely focusing on outputs rather than hours. This has become more and more common in other industries and the financial sector at times seems to be going the other way.
“Whilst there are many challenges beyond being a parent, so much of the impact of losing women from or stalling progression in the industry is linked to having children. One of the most important things any industry can do is offer proper paternity and shared parental leave. Fundamentally to help women you need to help create more balance between the sexes in other areas of life. The research shows that OECD countries giving more than 6 weeks of paid paternity leave have lower gender pay gaps. Added to which in countries where it could be either gender who takes time off with a child you don’t see the same potential discrimination against ‘women of a certain age’ in hiring, promotions etc. which sadly in some organisations (luckily not mine) still exists. We have to make it feasible to have a shared approach to the other elements of our lives if we want women to have equal opportunity at work.
“One of the concerns with the rise of LLMs making decisions and executing processes having been trained on historic data is that we will be building antiquated bias into some of these processes, as we know we have historically had challenges with sexism and racism. Being thoughtful about the data being used to train these models and how you are mitigating for bias is increasingly important in a world where the financial services sector looks to automate.”
Many organizations celebrate IWD, but how can companies ensure gender equality efforts extend beyond just one day?
“Words are not enough - sustained action is essential. The companies that have tackled gender inequality challenges are the ones that have implemented policies throughout their organisation in a systematic and strategic manner, and ensure that behaviours follow consistently. There is no single issue that causes gender equality problems - it is often baked into how a business operates - everything from how it recruits, pays and promotes, its working arrangements and the workplace culture that has been cultivated. The first step is recognising that everyone of of us has unconscious biases. This doesn’t mean they are actively trying to be sexist, simply that they often don’t realise that how they help an organisation to operate can favour one group over another. For example, it’s well documented that interviewers unconsciously prefer to hire people who share their experiences, personalities and outlook. If your hiring decision-makers are dominated by men, they will, without realising it, favour candidates that are male. Similarly, if a woman doesn’t see a single woman in the recruitment process she is less likely to believe that her career will be supported there. Once these biases are surfaced, policies can be implemented and importantly executed to ensure that they are solved.
“If you’re a business leader who thinks there isn’t a gender equality issue because your company celebrates IWD, I would suggest you talk to some of your female employees and seek their honest feedback - there’s probably a lot of good but you will likely still be in for a few shocks.”
What advice would you give to women looking to advance their careers in financial services?
“Say yes! Take every opportunity. You cannot predict what your route to success is going to be. A few years ago, I would never have guessed I’d be in this role, nor could I have predicted when I was younger that I would have been lucky enough to work at the London 2012 Olympics, where I learnt so much. I have said yes to every opportunity that came my way and proactively sought out ways to broaden my skills, such as by volunteering or joining company boards.”
How important is mentorship and sponsorship in helping women progress in this industry?
“It’s proven that women who have role models in the workplace, especially female ones, have longer, more successful careers. I’ve been fortunate to have so many different mentors in my career. I have learnt so much from so many people. Having mentors is so valuable, understanding their lessons of success, learning from the things they have struggled with, and shaping your own style and approach as a result. I would also say that a support network of peers to bounce off is invaluable, they’re the ones who truly understand how it feels to be in your position.
“Equally, sponsorship can play a crucial role in empowering women in the workplace. Even despite the progress made, the reality is that women can still face biases and systematic barriers in the workplace. Career sponsors can help mitigate these barriers, arming female employees with a means to express any concerns and challenging them to play a more proactive role in advancing their career. Women with sponsors are 20% more likely to be promoted than those without.”
