Like many industries, financial technology has a gender diversity problem. Women typically fall behind in terms of hiring rates, pay and opportunities in the workplace. But one digital bank, Black Banx, is hoping to increase diversity with their inclusion for all policy.
Deloitte reported three common problems women face in fintech employment: too few women in fintech companies, too few fintech companies have female leaders or founders, and women being underrepresented in the fintech user base. Historically, STEM was designated as a male-led sector, with few opportunities for women, and whilst on the broader spectrum the gender gap is closing within STEM, fintech and business finance are seeing larger gaps.
According to research conducted by Bibby Financial Services (BFS), only 49% of women business owners reported stable cashflow that meets their requirements. This is lower than the 66% of male respondents. 43% of female respondents also reported that they lacked the cashflow required for expanding their business. This gap highlights the difficulty a large percentage of women face in starting a business, especially when looking at company finances.
Chief strategic development officer of BFS, Lucile Flamand, said: “An uneven playing field of institutional barriers and entrenched stigmas have a significant impact on female-led businesses, and it is unsurprising that this is reflected in a confidence gap between women and men.
“Even in 2023, it’s still much harder for female entrepreneurs to access funding than it is for their male peers. In fact, women business owners receive less than half of the investment capital of their male counterparts, despite delivering twice as much revenue per dollar invested.”
Fintech has an ongoing problem with only 11% holding board seats and representing less than 20% of executives. Whilst governments push for women in tech, it seems the group is still significantly underrepresented in leadership roles.
Chris Woolard, Head of UK fintech and Chair of EY’s Global Regulatory Network commented: “The fintech sector is an increasingly important part of the global financial services ecosystem, with the UK playing a leading and exemplary role. However, the fact that female representation, particularly at board level, is still so low is not sustainable for an industry in growth mode. Now is the time to build on early progress with further regulation to help drive a material narrowing of the gender pay gap. Change has to be accelerated and an environment fostered that encourages greater diversity of thinking. Not only because it is the right thing to do, but because it will ensure the UK FinTech sector is in the best possible position to continue leading the way globally.”
One major fintech player, Black Banx, is actively improving its diversity numbers thanks to CEO and founder Michael Gastauer’s passion for inclusion. The digital bank is headstrong in its need to improve financial inclusions worldwide. With over 28 million customers and operations in 180 countries, Black Banx is a digital banking leader. Gastauer understands the businesses place in the industry and the opportunities that arise because of this, and with this knowledge he hopes to provide an inclusive environment for women looking to get a start in fintech.
Last year, Black Banx reported 3,100 employees with 31.4% of the workforce being women. In an online exchange with Gastauer, he said: “By 2025 we hope to double our employee numbers. This year, we have already increased our numbers to 4,000 employees. But more importantly, within the next two years, I expect Black Banx to have a minimum 40% of the workforce female. I’m also making sure there is an increase in female representation within leadership roles. It’s important that the gender gap closes industry wide.”
Black Banx’s need to provide financial services for everyone and its diverse and inclusive workforce makes the digital bank a standout among the financial technology industry. Right now, the sector looks like a world built for men and by men, with large gaps in representation from user base to executives. Taking a page from the Black Banx book can push a company into further success.
As well as closing the men to women ratio within fintech employment, Black Banx’s services are set to limit the financial inclusion gender gap. By making banking more accessible through a smartphone app and ease of sign up, Black Banx increases financial literacy among women, empowering them to spend within local economies.
Overall, as the fintech gender gap expands, Black Banx and its policies surrounding financial inclusivity and employment diversity, is a driving force for closing the gap.
