Women in FinTech: Steps to Bridge The Gender Gap

Just as a caterpillar blooms into a beautiful butterfly, the FinTech market is rapidly evolving, with digital payments and investments, capital raising, and digital assets emerging as some of the most significant trends.

According to Custom Market Insights, the global FinTech market size was estimated at $194.57 billion in September 2023, and is anticipated to reach around $501.9 billion by 2032, estimating a compound annual growth rate of roughly 18.9%.

However, despite this almost magical growth of the industry, gender inequality remains a significant challenge. Women are still underrepresented in leadership positions, with the global share of FinTech firms with women founders averaging just 10 -15% over the past 20 years, while the share of women executives in all FinTech firms was around 7%, according to a study by Expert Market Research. These numbers emphasise the fact that the industry is a far cry away from achieving gender equality, echoing the need for more intensive DE&I initiatives in FinTech.

What are the most pressing issues for women in FinTech? How can we overcome gender bias and stereotypes in the industry? These are the questions that need to be addressed, and in this article, we will explore some of these issues and discuss strategies for overcoming them. 

Challenges & Solutions

In order to successfully proffer solutions, the problems first have to be properly identified:

1. Under-representation in leadership positions: Companies can promote gender diversity by offering equal opportunities, mentorship, and leadership training. Having women leaders as role models and mentors is vital for young women in FinTech, and this encourages women to advance in their careers and benefit from women leaders’ positive impact. For instance, a single woman promoted to a C-suite role can triple women in senior leadership. Research from Kauffman Fellows shows that firms with women founders hire 2.5 times more women. This initiative fosters an inclusive, creative, and resilient workforce.

2. Gender bias and stereotypes: Unconscious bias can be uprooted through training and education programs to help employees recognise and overcome their biases. This can help create a more inclusive and equitable workplace. Firms can also promote positive images of women in FinTech and highlight their achievements and contributions to the industry. This can help challenge gender stereotypes and promote diversity and inclusion in the industry as well as impact the overall success of the company – a report by the Financial Times in 2015 highlighted that organisations with at least one woman on the board perform 26% better than those with male-only boards. 

3. Lack of access to funding: This financial setback affects women-led FinTech startups. Despite generating 20% more revenue, female entrepreneurs receive 50% less VC funding than male counterparts. Companies can break these stereotypes internally. Investors can positively influence gender diversity in FinTech by supporting women-led startups and providing them with the funding and resources they need to succeed. Firms can also make a difference by ensuring equal pay, eradicating the gender pay gap, and offering flexible work arrangements for women. These steps enhance work-life balance, reduce gender disparities, and improve employee retention.

Inspiring the Next Generation.

Now that we’ve discussed the “protective” measures to tackle inequality for women already in FinTech, here are additional steps to make more women interested in the industry:

1. Addressing the gender gap in access to financial services: According to a 2023 Statista report, only 21% of women use FinTech products and services, compared to 29% of men. The female underrepresentation in the industry significantly impacts the quality and diversity of the industry products and harms it from the bottom-up – This then paints a picture that the FinTech industry was created by men and for men, sort of like a “boys’ club”. To properly integrate more women’s interest, products and services that are tailored to their needs should be developed. This can help to promote financial inclusion and empower women to take control of their finances.

2. Encouraging women to pursue STEM education: Encouraging girls and young women to study Science, Technology, Engineering and Mathematics subjects can help prepare them for careers in FinTech and other technology-related fields. Collaborate with schools and other organisations with young bright minds, organise seminars and events to support the cause. This will go a long way in closing the gender gap in FinTech and aid diversity in the industry.

At Migasuto Global Services, we’re passionate about fostering diversity and inclusion in the FinTech world. We believe that every individual, regardless of gender, should have equal opportunities to excel in this dynamic industry. Our team is dedicated to providing content creation services to help your organisation attain its DE&I goals. Whether you’re looking to share your insights, showcase your achievements, or raise awareness about gender diversity, we’re here to help you make your voice heard. Join us in the journey towards a more inclusive FinTech landscape.