Despite increasing global efforts towards diversity and inclusion in the workplace, the leadership ranks of financial institutions remain male-dominated, says Eugenia Mykuliak, Founder & Executive Director at B2PRIME Group.
Even as women are making greater strides in finance, there are still barriers in place that keep many of them from advancing into executive roles.
As of 2024, women held approximately 10% of CEO positions in Fortune 500 companies. At the same time, we have the UK data showing that only 81 female executive directors have been counted in FTSE 350 companies over the past two years. This is an indicator that progress at the executive level has stalled.
Whether it’s because of unconscious biases or organizational culture, the financial industry must take stronger action to foster inclusive leadership. This leads to two important questions: why and how? Why is the leadership gap there, and what can be done to change it?
Key Barriers for Women in Finance
There are several factors that contribute to the gender bias that goes on in financial companies. First of all, the long-standing historical reputation of this sector as “meant for men” means that female employees often face different expectations when it comes to their performance.
While such opinions are outdated, it is not unusual to hear that some people believe women can’t run a company efficiently. Where assertiveness or decisiveness are typically praised as leadership qualities among men, they are often viewed negatively when exhibited by women, seen instead as aggressiveness.
There is also the fact that women still bear a disproportionate share of caregiving responsibilities, which can often clash with the demanding nature of finance. Long hours and high-pressure decision-making can make it hard to maintain a good work-life balance.
The lack of flexible work arrangements can make it hard for women to pursue leadership positions, leading many female workers to turn down promotions or pause their careers altogether for the sake of child-rearing. And since many financial institutions still have a predominantly male leadership culture, it is hard for women to find understanding in this matter.
Stereotypes that women are less committed due to family create an environment where women have to constantly prove their competence. In fact, previous Deloitte forecasts suggest that, without intervention, women’s share in financial C-suites worldwide might not even reach 25% by 2031.
This way of thinking represents a fundamental barrier that should be broken through. Many organizations lack clear pathways and support structures for women to rise through the ranks. Without strong mentorship programs and proactive encouragement from senior executives, women may struggle to gain access to the same opportunities and networks as their male counterparts.
The Cost of Underrepresentation
What some people may not realize is that the leadership gap isn’t just a social issue. It’s not just about diversity for diversity’s sake — it’s about business performance, as well. Research consistently shows that companies with women in leadership roles can outperform those without.
Greater inclusivity means more options on the table when it comes to decision-making. In finance and wealth management, where client trust is of paramount importance, having a more diverse leadership team can help companies adjust better to the variety in their customer base. It means increased innovation, better client-manager relationships, and stronger results.
Strategies for Improving Gender Diversity
To close the gender gap, firms must make it a point to intentionally implement strategies that support and retain talented women.
Regulators and policymakers have been playing a bigger role in encouraging diversity in recent years. In the EU, for example, a gender balance directive was adopted a while back that requires public companies to have at least 40% of board seats held by women come 2026.
However, without proactive internal effort, such regulations alone are not enough. And it feels good to say that there has been progress in that regard, as well. More and more financial institutions are committing to gender diversity goals.
The Spanish BBVA, for example, previously set a target of having women in 35% of management by 2024 and has successfully achieved it. Similarly, Bank of America aims for 33% women in its EMEA senior management come 2025, and by Q3 2024, it had already reached the 31% mark.
Yet another example is JPMorgan Chase which has one of the highest rates of women in top management. 47% of its operating committee is made up of women. The likes of Morgan Stanley and Citigroup are also following close behind. This shows that measurable goals can drive real change.
Stepping Beyond Quotas
While setting leadership targets is a helpful step in the right direction, gender equality still needs to be addressed at a deeper level. Specifically, companies must put in the effort to implement structural policies that foster gender equality in the long term.
Flexible work arrangements, in particular, are becoming a big factor in retaining female talent. Companies that normalize remote work and flexible hours stand a better chance of creating an environment where women can advance their careers without sacrificing their personal responsibilities. Such policies can benefit not just women but also the overall employee productivity.
Equitable parental leave policies should also be considered in greater detail. If the burden of childcare no longer falls mainly on women, it would remove a major obstacle in their careers, leveling the playing field and giving them a better shot at leadership.
Another major factor to consider is pay transparency. Opaque salary negotiation practices can often leave women at a disadvantage. But when companies commit to standardizing and openly sharing salary ranges, they help eliminate biases that lead to women being paid less for the same work.
Nordic countries offer strong examples of success in this area, offering shared parental leave and robust support systems that benefit both women and overall business performance. To my mind, more financial organizations can take inspiration from these models to build more inclusive leadership teams.
The Path Forward
So, to summarize: change is happening, but we need more efforts to keep it going. Better yet, to accelerate the pace. Financial institutions must commit to sustained action, with CEOs and senior executives leading from the top and setting the tone for the entire organizations.
Structured mentorship and networking programs are essential so that women can have the same opportunities as men and a clear path to progressing in their careers. Companies must invest in policies that allow women to balance career growth with personal responsibilities.
Ultimately, gender diversity in financial leadership is not just about fairness—it’s about better business. The financial landscape is highly competitive, and companies that are more inclusive about their leadership have better odds of getting ahead of their rivals.
