Although huge strides have been made in the gender gap in the financial services industry in recent years, on International Women’s Day we take a look at how far we’ve come, and what lies ahead. I focus on the impact of Equality, Diversity and Inclusion (EDI) policies, and of course, rollback!
Progress in female board representation
It’s no news that historically the financial services sector has been male-dominated, but the recent decades have seen an incredible shift. Women are taking their place in the C-suite and leading the way. Worldwide, there has been a steady increase in the representation of women on boards within the financial services industry. The sector may be late to the party but it’s certainly going in the right direction. Or is it?
You don’t even have to think women and other diverse groups bring a different view point to decision making, it’s just that a huge and capable section of the population had been historically excluded. Shamefully up until very recently. EDI was there to redress a systemic problem. And it worked. Back in 2016, women occupied only 15.2%* of the top roles in financial services globally. A decade before it was much lower than this. By 2023, however, that global figure had grown to 24.8%* signalling a long awaited change in dynamics.
The regional story is more nuanced.
There’s a delicate balance between political and cultural environments, legal systems, and boardroom dynamics across the globe that affect the embracing of EDI policies from one region to another.
In the US, female inclusion at board level rose from 13% in 2016 to 26.8% in 2023. And, while Europe as a whole has been at the forefront of this progression, female board representation growing from 23.5% in 2016 to 35.9% in 2023, local markets see quite a disparity. While inclusion in the UK increased from 22.9% in 2018 to 37.2% in 2023, France outperformed all comers, with 47% inclusion by 2023. Personally, I find it surprising, but Germany remains well behind the curve, with only 16% female inclusion at board level by 2023.
UK mirrors Europe’s progression of female board representation*
A vital role
EDI policies have been instrumental in promoting gender diversity within financial institutions. Initiatives such as the UK’s HM Treasury Women in Finance Charter, launched in 2016, aimed to improve gender balance by setting targets and holding firms accountable. By 2021, in the top 200 of British financial firms women constituted 32% of boards, That’s up from 23% in 2016.
However, a recent decline in female board appointments raises questions about the need for renewed focus and innovative strategies to maintain progress. The effectiveness of EDI policies is contingent on consistent commitment from organisations.
Many European financial institutions have largely maintained their commitment to diversity initiatives. Banks such as BNP Paribas, Barclays, UBS and Deutsche Bank have reaffirmed that diversity programs remain integral to their strategies, despite external pressures.
Recent rollbacks
As highlighted in a recent article in the New York Post, a trend among major Wall Street banks, including JPMorgan Chase, Morgan Stanley and Citigroup, of removing equity, diversity and inclusion language from their websites, signals a step back from corporate inclusivity commitments in the face of political shifts in the US.
In this environment, Goldman Sachs have recently discontinued their diversity mandate for IPO clients, a policy that required boards to include at least one diverse member, citing political backlash and legal challenges. Has the tide turned?
So what can those of us working in financial services do?
EDI seems to be under attack. It pains me to say it, but it is still a man’s world, and I don’t mean that in a positive way. The job EDI was there to do is not complete. There’s still a long way to go and the talent pool is still half the size it should be. And let’s be clear, I’m not just talking about women. Rolling back on EDI affects all people who don’t fit the pattern, all people who have historically been excluded.
So here’s 4 things we can all do on International Women’s Day.
- Reaffirm commitment:
Call on business leaders to publicly endorse EDI initiatives, ensuring they remain a strategic priority. - Enhance accountability:
Establish clear metrics and keep regular reporting to track progress and identify areas needing improvement. - Cultivate talent pipelines:
Invest in mentorship and development programs to prepare underrepresented groups, including women, for leadership roles. - Adapt to legal landscapes:
While navigating political and legal challenges, firms can seek innovative solutions to uphold diversity commitments.
In closing, on International Women’s Day, despite significant achievements in advancing women to board roles in finance, maintaining this momentum demands a steadfast commitment to equity, diversity, and inclusion. It’s crucial for companies to thoughtfully tread through shifting political and legal terrains to keep diversity and inclusion as key priorities in boardroom practices.
Moving forward demands persistent action and unity to build on our advancements and ensure women have equal opportunities to excel. Here’s to forging a path where every woman’s leadership potential is recognised and celebrated. Where women have a voice, and it’s them and their allies who feel emboldened, rather than the old guard.
References
- https://www.weforum.org/stories/2024/06/women-shape-influence-revolutionize-financial-markets/
- ttps://www.wibf.org.uk/
- https://www.ey.com/en_uk/newsroom/2024/01/female-appointments-to-european-financial-services-boardrooms-fell-year-on-year-in-2023-amid-growing-demand-for-c-suite-experience?utm
- https://www.cityam.com/women-account-for-a-third-of-financial-services-boards-report-says/?utm
- https://www.statista.com/statistics/1462366/uk-women-on-boards-of-financial-services/?utm
- https://www.cityam.com/women-account-for-a-third-of-financial-services-boards-report-says/?utm_
- https://nypost.com/2025/02/17/business/wall-street-banks-scrub-dei-language-in-retreat-from-wokeness/?utm
- https://www.fnlondon.com/articles/goldman-sachs-axes-ipo-diversity-pledge-93a5785e?utm
- https://www.fnlondon.com/articles/european-investment-banks-stand-firm-on-diversity-programmes-as-wall-street-wavers-0129fe74?utm
- Share of women as board members of German banks 2023 | Statista
- https://www.statista.com/statistics/1546137/female-share-board-members-german-banks/
- https://www.ey.com/en_uk/newsroom/2024/01/female-appointments-to-european-financial-services-boardrooms-fell-year-on-year-in-2023-amid-growing-demand-for-c-suite-experience?utm_source=chatgpt.com
- https://www.cityam.com/women-account-for-a-third-of-financial-services-boards-report-says/?utm_source=chatgpt.com
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