Hitchhiking Through FinTech: Still Waiting at the Gender Equality Stop

Reflecting on 2023, it’s a little surreal that amidst the ultra-high-speed blockchain transactions and coffee machines more advanced than last decade’s supercomputers, the FinTech world still retains a nostalgic hangover from centuries past: gender inequality.

Time-Travelling with Claudia: A Nobel Notion

Meet Claudia Goldin. This researcher, with her distinguished Nobel Economics prize, delved into the depths of history. She uncovered that although our technology has advanced leaps and bounds, our strides in gender parity seem comparatively measured. Two centuries of data suggest a progression from confining women to domestic roles to under-compensating them in the professional arena. Goldin’s historical perspective sheds light on this inequality, highlighting it not merely as an injustice but also an inefficiency, especially when considering that the academic prowess of women often surpasses that of men.

“A few years ago, I took a class on the most influential modern economists. It was at an Ivy League institution in the US, and dozens of old, white men and their theories made the syllabus. Claudia Goldin was the only woman. On the slide accompanying the lecture in which she was featured, her name was misspelt”, writes Josie Cox in her article for The Guardian. Cox is a journalist and broadcaster specialising in business, finance, and gender equality.

FinTech’s Gender Conundrum: An Industry’s Midlife Crisis

If FinTech were a person, it’d be that flashy guy with the latest tech gadget, claiming to be ahead of the curve yet still holding some, let’s say, ‘traditional’ beliefs about gender roles. A grim 22% pay gap paints the stark reality, and it’s not for lack of talent. Studies scream it loud and clear: the sector is underutilising half of its potential brainpower.

A recent study called “Transforming UK FinTech: Overcoming Barriers to Female Advancement”, undertaken by EY and Innovate Finance, gathered perspectives from 120 contenders from the Innovate Finance Women in FinTech Powerlist. The findings underscored issues like the fact that 27% of the participants felt underappreciated, and a quarter pointed out ambiguous career progression routes.

In a press release on www.insidermedia.com, the FinTech firm Payrow highlighted, “The gender pay gap in the UK tech, finance, and FinTech sectors is notably higher than the national average. Recognising these challenges, Payrow reports that 30% of its team comprises women. The firm emphasises that a diverse team, in terms of age and gender, results in varied perspectives, enhances problem-solving, and strengthens team cohesion”.

Tackling the Goliath: Solutions or Well-Dressed Platitudes?

Championing gender diversity is more than a PR exercise. From setting hard targets on gender diversity to overhauling recruitment practices, companies need a game plan. The suggestion of a ‘women-only shortlist’, while commendable, can only be a starting point. Beyond hiring, the workplace culture must evolve. As businesses and as societies, we need to ensure that the FinTech environment is conducive to women’s growth and leadership.

Promoting gender diversity isn’t just about numbers; it’s about meaningful integration at every level. Establishing transparent gender diversity goals, especially for high-ranking roles, is a primary step. Such goals shouldn’t remain on paper, and regular monitoring ensures accountability. Mentorship and sponsorship programmes can act as valuable conduits to guide female professionals, helping them steer through career paths and leap over hurdles. Recruitment practices, too, need introspection. Ensuring they are devoid of biases and actively drawing a diversified talent pool is essential. Furthermore, in the dynamic world of FinTech, flexibility is paramount. Offering adaptable working arrangements can serve as a magnet for retaining female talent. Finally, it all boils down to culture. A truly inclusive organisational environment, where every employee feels cherished and backed, paves the way for nurturing gender diversity and fostering female leadership.

The Road Ahead: Robots, AI, and... Equal Pay?

The realm of FinTech isn’t static. As we move forward, the skills required to excel in the industry are evolving. While STEM remains paramount, with the rise of AI, perhaps softer skills might finally get their day in the sun. Interpersonal communication, emotional intelligence, and an understanding of diverse clientele could become the new gold standards. Maybe, in this changing landscape, the gender scales will find a natural balance. Or, perhaps we’ll be having the same conversation in another two centuries, just with more sophisticated tech lingo.

The Future is... Complicated

For all our advancements, the road to gender equality in FinTech is riddled with potholes. While the optimist in me wants to believe that change is around the corner, the realist knows it’s going to be a tough ride. But, as Goldin has shown us, understanding our past can provide a roadmap for the future. And if we can manage to not lose it in the vast cloud space of blockchain transactions and AI algorithms, perhaps, just perhaps, the future of FinTech will be as bright and balanced as we hope.