The landscape of the FinTech industry is rapidly evolving, with women in FinTech playing an increasingly pivotal role in shaping its trajectory. A recent press release from EY highlights the challenges faced by women in UK FinTech, shedding light on the gender pay gap and the need for regulatory measures to enhance diversity, equity, and inclusion (DEI) in the sector. This article delves into the key findings of the EY report, emphasizing the impact of women in FinTech and the strides made toward achieving gender parity.
Analysis of the EY Report:
The EY and Innovate Finance report, ‘Changing the face of UK FinTech: from glass ceiling to open doors,’ underscores the progress made by women in UK FinTech while acknowledging persistent barriers. The study, based on interviews with 120 nominees of the Innovate Finance Women in FinTech Powerlist, reveals that industry recognition (27%) and non-transparent promotion processes (25%) hinder female career progression. Furthermore, the lack of salary transparency and low representation of women in senior roles contribute to a higher-than-average gender pay gap of 22% in the FinTech sector.
The report identifies regulatory intervention as a crucial factor in addressing these challenges, with 17% of respondents viewing regulation to narrow the gender pay gap as the top solution. The call for consistent salary bands, improved salary transparency through tech-enabled solutions, and increased visibility of female leadership emerges as essential steps toward achieving gender equality in FinTech.
Challenges for women in FinTech:
Based on the EY and Innovate Finance report, ‘Changing the face of UK FinTech: from glass ceiling to open doors,’ here are a couple of challenges that women in fintech could be encountering on their career path:
Industry Recognition Barrier: The report highlights that 27% of respondents identified a lack of industry recognition as a significant challenge for women in fintech. This suggests that women may face obstacles in receiving acknowledgment and credit for their contributions within the industry, which can impact career advancement.
Non-transparent Promotion Processes: About 25% of respondents expressed concerns about non-transparent promotion processes. This indicates that the criteria and processes for career advancement may not be clear or accessible to women in fintech, potentially leading to biases and hindering their progression within organizations.
Gender Pay Gap and Lack of Salary Transparency: The report underscores the issues of gender pay gap (22%) and the absence of salary transparency. The lower representation of women in senior roles may contribute to this pay gap. Without transparency, women might not have visibility into equitable compensation, exacerbating gender-based pay disparities.
Low Representation in Senior Roles: The low representation of women in senior roles is a systemic challenge. This lack of representation not only affects the diversity of leadership within fintech organizations but also contributes to a broader gender gap in the industry.
Regulatory Intervention Needed: The report suggests that regulatory intervention is crucial to address these challenges. Approximately 17% of respondents identified regulatory measures to narrow the gender pay gap as the top solution. This indicates that industry participants recognize the need for external measures to drive meaningful change.
Call for Consistent Salary Bands and Tech-enabled Transparency: Respondents emphasized the need for consistent salary bands and improved salary transparency through tech-enabled solutions. This suggests a demand for standardized practices and tools that can promote fairness and equality in compensation structures.
Increased Visibility of Female Leadership: The report highlights the importance of increasing the visibility of female leadership. Elevating the profiles of women in senior roles can serve as inspiration for others, challenge stereotypes, and contribute to a more inclusive fintech ecosystem.
Notable Women in FinTech:
Beyond the challenges outlined in the EY report, the FinTech industry boasts inspirational women who are driving innovation and reshaping financial landscapes. Cristina Junqueira, co-founder of Nubank, has transformed the Brazilian financial industry, offering digital banking solutions that serve an estimated 75 million customers and hold a market potential of $126 billion by 2025.
Emilie Choi, President and COO of Coinbase, showcases the dynamic leadership needed in the cryptocurrency space, guiding the company through market fluctuations and steering its growth. Samantha Ku, COO at Square Financial Services, exemplifies resilience, rising from economic challenges to become a key figure in shaping Square Capital’s program product suite.
The list of influential women in FinTech extends beyond these examples, featuring leaders such as Anne Boden, JoAnn Stonier, Mariquit Corcoran, Charlotte Hogg, Ghinwa Baradhi, Manuela Seve, and Vrinda Gupta. Each woman brings unique expertise and perspectives, contributing to the industry’s diversity and innovation.
Communities Empowering Women in FinTech:
Recognizing the importance of community support, various platforms offer networking and mentorship opportunities for women in FinTech. Websites like Women in FinTech, Women in FinTech Network (WIFTN), FinTech Ladies, and Bloomberg’s Women in FinTech provide valuable resources, connections, and a supportive environment for women interested in advancing their careers in the industry. These communities foster collaboration, knowledge-sharing, and empowerment, contributing to the growth of women in FinTech.
Upcoming events for women in FinTech:
The organizations we just mentioned are known for their exciting yearly and monthly events aimed at women interested in developing their skills and networking with fellow FinTech enthusiasts. Here are just a few of them:
- Fintech Ladies is organizing a get-together at Expatrio on Nov 29, 2023, at 19:00–22:00 (CET) at Expatrio Global Services GmbH, Linienstraße, Berlin, Germany. Explore the challenges of scaling up a startup into a scaleup through a panel discussion with industry experts. Tickets are €9.00 (+€1.00 booking fee). Don’t miss the mingle, insightful discussions, and networking opportunities.
- Another interesting opportunity by Fintech Ladies will take place in Frankfurt at the Annerton on Dec 7, 2023, at 18:00–22:00 (CET) at Annerton Rechtsanwaltsgesellschaft mbH, Wöhlerstraße 5, Frankfurt am Main, Germany. You’ll be able to explore Annerton’s journey, establishing a new legal firm in a competitive landscape, with insights into upcoming trends in financial market regulation and compliance requirements. Tickets are €9.00 (+€1.00 booking fee). Enjoy mingle sessions, a panel discussion, and networking opportunities with drinks and nibbles.
- Women in Tech Conference 2024, a global hybrid event on April 23-25, unites women, minorities, and allies in tech through keynotes, panels, and networking, showcasing +700 speakers, +100,000 visitors, and emphasizing diversity, innovation, and career growth. The event takes place virtually and in-person in Europe and North America.
- The European Women in Technology event on June 26-27, 2024, in RAI, Amsterdam, gathers over 4,500 women, underrepresented technologists, and allies, celebrating empowerment, diversity, and excellence under the theme “Digital X Human” for networking, growth, and exploration in the tech industry, with early bird tickets available until December 15 for a €350 discount.
As women continue to break barriers and make significant contributions to the FinTech industry, the call for regulatory measures, transparent pay structures, and increased visibility remains crucial. The EY report highlights the challenges, but the success stories of women in FinTech and the supportive communities available demonstrate a commitment to building a more inclusive and equitable future for the industry. The journey toward gender parity in FinTech is ongoing, but with the combined efforts of regulatory bodies, industry leaders, and supportive communities, the trajectory is promising.