Women are breaking through barriers and achieving huge success across a wide range of industries. However, there are very few women working in finance. It is unlikely that this trend will change any time soon.
Deloitte insights estimates that 31% of the financial industry employees will be women in 2030. It begs the question “Why there aren’t more women working in financial services?” There are a variety of theories. We wanted to learn more from an experienced expert. Farnoush Farnoush is a committed finance professional and advocate for women’s empowerment.
Are there women working in finance?
The U.S. employs 57 percent of women However, only 24% hold financial positions. The number is projected to grow to 28% in the next ten years and up from 24% in 2021 – but still much less than parity..
This isn’t a problem that is only affecting women. Farnoush Farsiar claims it’s also a problem to the economy. Farsiar said that teams with different styles of leadership perform better than teams that share the same views. Farnoush Farsiar “So it is not only vital that women are represented in these fields, but it is also crucial for the country as overall.”
There are many theories that explain why women aren’t represented in the financial services industry. One theory is that financial services are masculine and competitive for females to enter into. Another theory is that women aren’t motivated to pursue careers in finance whether by their parents or their peers.
Farsiar believes that women’s exposure to socialization from a young time is at the source of the issue. Women are taught to take care of their children and to be accountable for their security. “We’re taught not to take risks, but rather to be safe. This isn’t a good way to go to a successful career in finance.”
Women are educated not just to take care of others, but also to please people. Farsiar said women were taught to be polite. “But in the world of finance, you need to be able to stand up for yourself. You need to be able to advocate for your personal ideas.”
Farsiar asks , where are the females working in finance?
At the highest levels of the financial industry women are disproportionately underrepresented. According to a study conducted between 2016 and 2017 by Pew Women hold just 10% of executive post. There are only 11.5 percent of women sit on the top financial company boards.
This disparity has a real-world effect on women working as finance professionals. This imbalance means that women are more likely than men to be promoted and more likely to leave the finance industry.
The good news is that women are slowly, but surely becoming older. Farnoush Farsiar believes it is because of the #womenshould Campaign, which has created a greater awareness of the lack of diversity. Farsiar states she’s “convinced that the #MeToo campaign also had an incredible impact. Women are beginning to recognize their voices heard and demanding change.”
There are obstacles for women getting into finance
There are numerous hurdles women have to overcome in order to be successful in finance. One of the most significant barriers is the lack of role models. Women in finance are typically the only ones in their respective departments, which could cause being isolated.
Farsiar said that being the only woman in a room could be quite intimidating. “You expect to be perfect in all situations and there can’t be any mistakes.”
Another barrier is the “old guys’ club” mentality that is prevalent in many finance businesses. Farnoush Farsiar It is the belief that men favor other men and women are not considered.
Farsiar acknowledges that “there’s a lot more real,” he says. “I’ve seen it happen firsthand. Men will encourage other men, even when the woman is better qualified.
Farnoush Farsiar The old boys’ club mentality can also lead to sexual discrimination or harassment. Women who are financially successful often face rude comments and unwelcome advances from their male colleagues.
Farnoush Farsiar exclaims that “it’s certainly a issue.” “Women who work in finance are often treated just like objects. It can be difficult to make it big when women are treated that in that way.”
Farnoush Farsiar The last barrier is the inability to find flexible work arrangements. It is more typical for women to take on the responsibilities of a family, such as taking care of their parents, elderly parents, or children. Women require flexible work arrangements in order to balance work and family.
“Finance is a very demanding industry. It can be challenging to meet these demands when you have other responsibilities. Women are often forced to make a choice between their work and family.
These obstacles make it difficult for women to gain entry into the financial sector and hold senior post. There are however many initiatives being implemented to improve this.
Farnoush Farsiar Thinks There’s a Positive Future for Women in Finance
There is every reason to believe in the future of women in finance. Many initiatives are working to increase the number of women in the finance industry and aid them in reaching senior roles.
One such initiative is the Women Entrepreneurs Finance Initiative (We-Fi) which is an alliance between the World Bank Group and 14 governments. We-Fi offers financing and support for women-owned enterprises in the developing countries.
“This is a fantastic initiative since it gives women access to the tools they need to establish and grow their companies,” Farsiar said. It also helps them to create networks and connect with other women who are successful.
The Women in Finance Charter was another initiative the U.K. government launched in the year 2016. The Women in Finance Charter encourages gender diversity.
Farsiar says the Women in Finance Charter “is an amazing leap forward.” It encourages financial firms as well as other companies to tackle gender diversity.
Women tend to be more likely to be promoted and are more likely to work in senior financial positions because of initiatives like We-Fi. Farnoush Farsiar This is good news for both the financial and female sectors.