The Fintech industry is one of the most rapidly expanding fields in this financial world. It is currently valued at $150 billion, and will soon grow up to $850 billion in five years. Yet, despite this vast economic growth in the modern world, women only amount to a small percentage in this industry.
It’s not as if women aren’t contributing enough to the industry. Take Kalpana Morparia for example, who worked at ICICI Bank for 33 years and raised the bar for women by shattering barriers. Arundhati Bhattacharya, on the other hand, became the first female chairperson of SBI – State Bank of India. Internationally, Sallie Krawcheck founded Ellevest – a wealth management firm, and Mariquit Corcoran paved the way for women in finance and banking with her 20 years of experience.
These are just some of the many examples of women in Fintech, who’ve contributed a lot. However, there still seems to be a lack of demand for women in Fintech.
Therefore, keeping this in mind, let’s dig deep into the role of women in Fintech – their current state in the industry, how can we empower them further, and how is technology helping in this endeavor.
What is the Current State of Women in Fintech?
Globally, women make up 22% of all employees in Fintech industry. In India, that number further drops to 14%. Considering the fact that India is way ahead in adoption of fintech , 87% compared to 64% globally, this number does not portray positive outlook. In Fintech boardroom, women account for 11% of the total strength.
However, the one glowing sign of women progressing in this field are the number of startups. Women-led startups are increasing by the day, and a lot of them are catering to the needs of various women from all marginalized sectors. Needs and issues which weren’t brought up earlier, started to get addressed. Hardika Shah of Kinara Capital, Swati Bhargava, co-founder CashKaro, Puja Srivastava, Co-Founder Spocto Solutions are some of the women leading the game
Moreover, women are also breaking through the already male-dominated industries such as Banking, Finance, IT, and rising to the top through years of hard work.
While there are positive signs for the growth of women in Fintech, there is still a long way to go. The UNCDF’s Inclusive Digital Economies and Gender Equality Playbook suggests that financial inclusivity could be the biggest boost to women’s empowerment. A study in UK found that women still earn 22% less as compared to their male counterparts in Fintech. There are efforts to bridge this gap.
Breaking Barriers: Key Strategies for Empowerment
One of the first and foremost challenge women face in any workplace is ‘Gender Inequality’. It is no different in Fintech sector. But the gender inequality isn’t as blatant as it may seem. Instead, it spreads across the industry in the form of ‘Gender Bias’. In its subtlest form, gender bias is simply marginalization of women in various Fintech sectors.
Rachel Carpenter of Intrinio calls for the urgent need of ‘Normalization’ of women in the workplace to combat this issue. Her theory of Normalization suggests that women be treated equally as men in every minute decision-making process. An extra importance placed on women above men is also part of the issue since it calls for more attention.
For example, setting up a panel titled ‘Women in Finance’ isn’t really ‘Normalization’, but just inviting women as part of the panel about finance is normalizing it. Not questioning them for maters that usually go unquestioned for men is also helping fight the problem.
Other factors like payment, promotions, bonuses, etc should also come at the right time for women as they do for men. This will not only break the barrier for them but also help the firm generate more profit.
Leadership Effectiveness rated that women are better leaders. Venture capital firm FirstRound Venture suggested data that companies with female founders performed 63% better than those run by male. With these statistics, it becomes a positive situation for hiring and empowering more women into the Fintech sector.
Also, typical definitions of various characteristics like leadership, management, etc. need to be looked upon once more. This is because most of those traits were historically designed with male counterparts in mind.
Lastly, addressing women-centric issues on a regular basis that can be tackled through Fintech will help the course.
How are Women Driving Innovation in Fintech?
Keeping the marginalized sectors in mind, and the various other issues of women that need addressing, women are developing innovative financial products for the same. For example, apps developed by financial companies that collect real-time data on essential goods are now used by women to make informed decisions about their financial lives.
Women Led companies in Fintech India are playing crucial role by bringing unique perspectives, unique solutions and as mentioned focus on inclusivity.
To drive this empowerment forward, women are also promoting financial literacy among young girls and women. Also, Fintech is allowing women to borrow money from investors worldwide via micro-lending platforms. This wouldn’t be possible before the advancement of Fintech.
Inclusivity, fresh perspectives, and renewed leadership traits are some of the other aspects where women are innovating with Fintech too.
What is the Role of Technology in Enabling Equality?
The innovative Fintech technology improves the penetration of financial services across the country. The technology also enables to personalize and simplify the services offered. It is made accessible to large part of country which was not touched by traditional finance
The digital platforms have democratized the financial services thereby bridging the financial gap and bringing economic equality. They are also reducing gender gaps in India by empowering women and other marginalized sector of society.
Due to technological advancement, Financial literacy is no more a male thing. With access to research, reports and information, large number of women are now able to take informed decisions and are managing their finances.
How Does an MBA in Fintech Program Help Women?
An MBA in Fintech management can help women have wider perspective about business and its impact on society. More importantly, they would be able to contribute to solution related to financial accessibility to all. Here are some aspects where women can benefit from by studying MBA in Fintech:
- Fintech imparts a combination of financial and technical knowledge, that can enable women climb up the corporate ladder and reach positions of power and leadership.
- Women can build their network in the Fintech world after pursuing an MBA in the same.
- An MBA degree in Fintech will impart them with knowledge about the industry, not just textual but practical. This will go a long way in helping them finding solutions in their career whenever they get stuck with a problem.
- There will be multiple more career opportunities for women once they study MBA in a burgeoning field like Fintech.
Although the numbers are still low for women in Fintech, they are making waves in this industry. So many of them have broken the glass ceiling by starting and running successful startups. Others have reached the summit of their companies by dedicating years of their life in companies.
However, with the emerging trend of technologies and AI, that show that women-driven roles are fetching more in returns, things are looking on the upside for them. After industries have realized that hiring more women have resulted in more effectiveness and better ROIs, things are looking positive for women in Fintech.
Frequently Asked Questions
1. Why is it important to have more women in fintech?
Studies suggest that hiring more women in Fintech can yield better results and more effectiveness at work. Moreover, it is also important to address women-centric issues in society and solve them via Fintech. Having more women in the industry is the best way to achieve success there.
2. How can women start a career in fintech?
After pursuing a Bachelor’s degree from any field (preferably finance or business related), they can appear for an MBA in Fintech from any reputed University. They can learn the industry-demands during the course and straightway enter the industry to start their career.
3. What are the biggest challenges women face in fintech?
Gender Inequality, Gender Bias, Marginalization, and even lack of Equal Treatment are some of the major challenges women face in Fintech.
4. What role does education play in empowering women in fintech?
Education plays the biggest role in empowering women in Fintech. More than technology and societal approach, education arms women with knowledge and information which gives them confidence to tackle any issues in the workplace. It also helps them climb up the corporate ladder without waiting for longer periods than the other gender counterparts.