By Eugenia Mykuliak
Global efforts to promote diversity and inclusion are growing, but when it comes to finance, leadership, in many ways, still remains very male-oriented. Take the UK, for example: as of 2024, women hold 42% of directorship positions among FTSE 250 firms. Doesn’t seem too bad at first glance, but when we look further, the number of women in executive roles has dropped by 11% between 2022 and 2024. This shows that the progress of female career advancement has slowed down.
Whether it’s unconscious bias or a deeply ingrained corporate culture that’s getting in the way, the financial industry must take more deliberate action to foster inclusive leadership. Why? Because diversity isn’t just a social initiative; it is important for business advancement as well.
Here is what I’m talking about.
The Business Case for Gender Inclusivity
Market research consistently demonstrates that companies with women in leadership roles perform better than those without. Increased gender diversity fosters a wider range of perspectives, leading to better decision-making. It’s not just about women; it’s about delivering better services and getting better results.
This is true for any industry, but even more so for finance, where client trust is paramount. Diverse leadership can help companies better understand and serve a broad customer base, leading to stronger client relationships.
And yet, despite clear evidence in favor of further inclusion, women still keep running into obstacles along their career paths. So, what can be done about it?
The Nature of Barriers to Women’s Advancement
The long-standing reputation of finance as a male-dominated field means women often face biases, whether conscious or not. The stereotype that women lack the ability to run large organizations still lingers, which means women are often expected to work twice as hard to achieve the same level of recognition as their male counterparts.
Not only that, but given the fact that child-caring responsibilities still fall primarily on women, it often clashed with the demanding nature of their jobs. Working in finance often means long hours and high-pressure decision-making, and a lack of support networks in maintaining a healthy work-life balance can discourage women from pursuing top roles.
Women are often forced to choose between career progression and household commitments. Many of them turn down promotions or step back from their careers altogether in order to prioritize caring for their families. In an industry dominated by male leadership, this choice is often looked upon with a lack of understanding. When a woman’s commitment to her work is questioned due to family obligations, it can feel isolating and emotionally draining.
So, to summarize, it’s this whole mindset that needs to change in order for women to be able to stand firmly in the financial sector. Many financial institutions still lack clear pathways and supportive environments for women to advance in their careers.
Strategies for Improving the Diversity Situation
To close the gender gap in financial leadership, organizations must consciously implement strategies to support and retain talented women.
In recent years, policymakers and regulators have come to play a growing role in advancing diversity. In Germany, for example, they’ve introduced the Leadership Positions Act in 2021, according to which public companies are required to fill at least 30% of board seats with women.
However, as we already covered above, it’s a matter of changing the entire mindset of this industry. Legislation alone is not enough. Proactive internal efforts among businesses themselves are critical. Without strong mentorship programs or proactive support from senior leaders, women will continue to struggle to access the same opportunities and networks as their male peers.
Flexible work policies, such as remote work with adjustable hours, can also play a big part in helping women balance career and personal responsibilities. Equitable parental leave policies are also a good idea — if the task of childcare is shared more equally between men and women, it would remove a significant obstacle to women’s career advancement.
By integrating and normalizing such practices, companies can create an environment where women have a real opportunity to grow in their careers. Some of the Nordic countries have good examples in this area, with work models that promote shared parental leave and strong support systems that benefit both women and overall business outcomes. Financial institutions worldwide could take a page from these.
The Path Forward
To sum up, progress is happening, but we can’t allow its pace to slow down. Greater action is needed — financial organizations must commit to sustained efforts in gender diversity. And it falls to the leadership of such companies to pave the way and set the tone for others to follow.
The field of finance is very harsh and is not kind to companies that fall behind the competition. Firms that embrace diversity and allow women the same professional opportunities as men will be better equipped to boost their workforce and productivity. This will be a key element for such companies to find success in the long term.
Eugenia Mykuliak
