Women are breaking through barriers and becoming powerful leaders in a variety of sectors. The sad reality is that very few women are working in finance. It is unlikely that this trend will change anytime soon.
Deloitte insights estimates that 31% of financial sector employees will be female by 2030. This begs a question: Why is the gender gap so low in finance? Although there are many theories on the reasons for this but we were looking for an opinion from someone who’s worked in finance for some time. Farnoush Farnoush an expert financial professional who is passionate about women’s empowerment was our interviewee.
What is the percentage of women working in finance?
The U.S. employs 57% women However, just 24% have financial jobs. This figure is expected to rise to 28% within the next ten to 20 years, up from the current 24.
Diversity isn’t just an issue that affects women. Farnoush Farsiar believes it’s also an issue that has an impact on the economy. “Diverse leadership teams are more effective than teams that do not possess a wide variety of perspectives,” Farsiar said. “So it’s important that women are included in these positions. This is also essential for the country.”
There are many reasons why women are not present in the financial world. The most popular hypothesis is that the financial industry is too male-dominated and competitive for women to enter. A different theory suggests that women are not encouraged to take up careers in finance, either by their parents or colleagues.
Farsiar believes socialization of women at an early age is at the root of the problem. “Women are taught from a young age to be caretakers rather than risk-takers. “We’re taught to be safe and not to risk our lives. This isn’t a good way to go about a career as an analyst of financials.
It’s not enough to have women being trained to be caretakers. They’re also taught to be people-pleasers. Farsiar states that women are taught to be polite and to minimize conflicts. However, in the field of finance it is essential to be able to speak for yourself. You need to be able to advocate for your ideas.
Farsiar What are the fate of all the Finance Women?
Women are disproportionately underrepresented in finance at the most senior levels. According to a study by Pew Researchers, only 10% of finance jobs are held by women in senior executive posts. They also hold only 11.5 percent of board seats in financial firms.
This disparity has a real-world effect on women who work as financial professionals. It is because women are less likely to be promoted than their male counterparts and are more likely not to stay in the field.
The best part is that that the rise in women who hold high-level positions is not rapid but steady. Farnoush Farsiar believes part of this rise in women’s senior roles is due the #womenshould movement which increased awareness of the need for diversity. Farsiar believes that the #MeToo campaign has had an incredible impact on her life. Women are now more vocal and calling for change.
There are hurdles for women being able to enter finance
There are numerous obstacles women must overcome to be successful in the world of finance. A lack of role models for women is one of the most significant obstacles for women getting into finance. Finance women often are the only female employees in their field and this can cause them to be lonely.
https://eutoday.net/news/business-economy/2019/how-wealth-management-firms-can-prepare-for-turbulent-times https://www.businesstelegraph.co.uk/why-there-are-few-women-in-finance-farnoush-farsiar/ “It is really scary to be the sole female in the room” Farsiar said. “You feel that you have to be perfect every time, and you cannot make mistakes.”
Another obstacle is another issue is the “old boys club” mentality still prevalent in many finance companies. This is a belief system in which men encourage other men and women are excluded.
Farsiar admits that there’s much to this claim. “I have witnessed it firsthand. Farnoush Farsiar Men will promote other men even when they are better qualified.”
Farnoush Farsiar This”old-boys’ club” mentality can lead to the harassment of women and discrimination. Female finance professionals are frequently subjected ostracizing comments and unwanted advances by male colleagues.
Farnoush Farsiar exclaims that “it’s certainly a problem.” “Women who work in finance are often considered commodities, which makes it difficult for them to succeed.”
Lack of flexibility in working schedules is another obstacle. Females are more likely be responsible for family obligations than men for example, taking care of elderly parents or children. This means that they require flexible work arrangements that allow them to balance their work and home life.
“Finance can be a very demanding job. It’s difficult to manage other responsibilities. Women frequently have to pick between their work and family.
These challenges make it extremely difficult to be a top financial professional and get into the business. However, there are several initiatives being implemented to overcome this.
Farnoush Farsiar Thinks There’s a Positive Future for Women in Finance
There are plenty of positive reasons to believe in the future of women in finance. A variety of initiatives are working to increase the number of women working in the finance sector and aid them in reaching senior roles.
One such initiative is the Women Entrepreneurs Finance Initiative (WeFi) It is a partnership between the World Bank Group & 14 governments. We-Fi provides financial assistance and financing for women-owned enterprises in the developing countries.
Farnoush Farsiar Farsiar stated that this is a wonderful initiative because it provides women with the tools they need to expand and begin their own companies. It helps them create networks and make connections with other female entrepreneurs.
The Women in Finance Charter, created by the U.K. in 2016, is a different initiative. Financial companies have pledged to gender diversity by signing the Women in Finance Charter.
Farsiar lauds “The Women in Finance Charter as a great step forward.” It’s encouraging financial companies to take action on gender diversity and it’s making an impact.
Women in Finance Charter and We-Fi help more women reach high-ranking positions. This is an excellent thing for both the women and financial sectors.