The financial services industry, traditionally male-dominated, is rapidly evolving to foster greater diversity within its talent pool. Nevertheless, there is a gradual shift occurring. Women are progressing into leadership positions and redefining the landscape of the financial industry. In this blog, we’ll explore the emerging landscape of women in investment banking with a broader focus on the finance services industry (FSI).
Women in investment banking, often find it challenging to continue their careers. In their investment banking career path, they face various challenges—
Globally, women's representation in senior leadership and next-generation roles has shown slower growth compared to C-suite positions. If current trends persist, the proportion of women in senior leadership roles may stay stagnant. This underscores the significance of gender-equity initiatives and the necessity to establish a sustainable talent pipeline across organizations and regions.
Despite the challenges, the number of women in financial services attaining the highest levels of leadership, such as the C-suite and board positions, is increasing. In the past decade, more women have been appointed to FSI C-suites than men. According to Deloitte, currently, 18 percent of women hold C-suite positions globally. However, without a more concerted effort, the global growth in the share of women financial leaders may not even reach 25 percent by 2031.
Although investment banking is a male-dominated field, several female leaders have successfully navigated their investment banking careers and become the catalysts for change, inspiring many.
Women in finance often lack role models, which can hinder their career progression. To address this challenge, businesses and organizations play a crucial role in guiding women through various career steps.
Companies can facilitate this by developing formal sponsorship, mentorship, and buddy programs to connect junior and senior women professionals. These programs provide dedicated platforms for exchange and support, ultimately aiding in the retention of women in finance roles.
Additionally, unconscious biases among evaluators hinder women's advancement in finance. With a disproportionate number of men in senior positions, gender biases can affect performance evaluations and hinder career growth. To combat this, companies need to address gender imbalances in leadership positions, standardize pay grades, and ensure equal pay for equal work. By countering evaluator biases, companies demonstrate a commitment to fair treatment and create a more inclusive environment for women in finance.
Formal diversity programs alone are not enough to create lasting change. An adaptive and inclusive workplace culture is essential for sustaining diversity efforts over time. Companies can embed diversity into their culture by offering inclusive benefits such as parental leave and flexible working models for both men and women.
This not only discourages stereotypical perceptions but also supports employees in balancing their career and family commitments, ultimately promoting long-term employment and diversity in the workplace.
Leaders in the Financial Services Industry (FSI) have the chance to significantly impact the creation of a more equitable world. By taking proactive steps at the organizational level, they have the power to collectively alter the course of women's representation in leadership positions within financial services firms globally. Only through such intentional actions can we hope to achieve greater gender diversity in leadership roles.