Earlier this year, the World Economic Forum (WEF) announced that “women are poised to reshape financial markets — as investors and financial decision-makers.”
According to the organization, the financial services industry “could unlock a $700 billion revenue opportunity” if it made a better effort to effectively serve female clientele, an effort that would “deliver both societal progress and economic empowerment.”
Maybe, but other data suggests that in many ways, women have been ill-served by the mainstream financial services industry, leaving them significantly behind their male counterparts when it comes to accumulating retirement nest eggs or even having confidence in their investment decisions.
Susan Lindeque, founder and CEO of Avestix, a women-led investment firm based in Florida, is not surprised to learn that a multi-billion dollar opportunity awaits those financial services firms that cater to women. Nor is she surprised to learn women lack investment confidence.
“Let’s face it,” Lindeque says, “the financial services industry has long been overseen by men and the resources and tools that the industry offers have been primarily male-focused. To broaden its reach, the entire industry needs to think female-first and that starts with putting more women in decision-making roles.”
Which is what appears to be happening, albeit slowly.
Last year, Deloitte determined the number of women occupying leadership roles in the financial services industry is on the rise.
“Over the past decade, more women have been added to [financial service industry] C-suites than men,” according to Deloitte. “Women now account for 18 percent of C-suite positions globally.”
However, progress is sluggish. “Without a more concerted effort, global growth in the share of women financial leaders may not even reach [25 percent] by 2031,” the report found.
The fact that a greater number of women now serve in leadership roles in financial services organizations is a “great start,” says Lindeque, but she believes a broader cultural shift is in order.
“Promoting women to leadership roles is only the beginning,” she says. “To ensure complete equality between women and men in the financial services industry, women need access to the same resources, educational opportunities and earnings that their male counterparts enjoy.”
Education is especially important, she says, but it alone doesn’t promise parity.
“Women now represent a majority of the college-educated workforce in the U.S. They are more likely to graduate from college than men and are more likely to receive a graduate degree. Yet, at every educational level — high school, college, grad school — men continue to earn more than women,” she says.
If the mainstream financial services sector is serious about putting women in leadership roles in an effort to woo women investors, Lindeque says it could take a cue from alternative financial services sectors such as the blockchain industry and other emerging industries.
“Many people automatically think of male-dominated ‘bro cultures’ when they think of blockchain, crypto, and non-fungible token (NFT) industries,” she says. “But those industries have given many women the opportunity to emerge as leaders and influencers in the space.”
Blockchain Magazine recently profiled ten women who are “making significant contributions, fostering innovation, and driving positive change” in decentralized finances.
Among the women Blockchain Magazine spotlighted as leading the charge are Layah Heilpern, Sheila Warren, Oluchi Enebeli, and Lisa Francoeur. According to the publication, they and others “are playing a crucial role in educating the public about blockchain technology and its applications, helping to demystify complex concepts and drive mainstream adoption.”
Other emerging technology industries also appear to be taking a more aggressive approach to promoting women to leadership roles.
Time recently profiled six women who are “shaping the future of artificial intelligence (AI). Their list included Fei-Fei Li, a Stanford University professor who, among other things, recently urged President Biden to adopt a “moonshot mentality” with regards to spearheading a national policy around AI.
Time also profiled Sneha Revanur, founder of Encode Justice, a youth-led nonprofit dedicated to developing safe, equitable AI.
“My peers and I are determined to do more than just inherit that world,” Revanur told Time. “We’re actively co-creating it.”
“That is exactly why more women need to occupy the C-suite in the financial services sector,” says Lindeque. “When women help lead an industry, they help create it.”
