The world of finance has long been a male dominated domain. The disparity is something which is carried over from the educational system, where women are often expected to opt for courses that, at least on paper, do not equip them for a career in the financial sector. As of 2019, only 11% of C-suite positions in the investment sector were held by women. And that is the what sets the base for the fiscal ceiling.
Why must we break the fiscal ceiling?
Gender diversity is not just a buzzword and neither is it a mandate where a quota merely needs to be filled without a more rooted solution. More women in the labour force means not only the upliftment and empowerment of women, but also the introduction of more new perspectives and ideas. New solutions, new troubleshooting approaches, and a more diverse voice in a financial institution will all lead to more inclusive financial services.
Female sales executives can actually help more women avail of banking and investment services. Though India has seen a substantial increase in bank account holders in the past few years, there is still a huge gap between men and women – especially in rural areas. A study conducted in Madhya Pradesh found that when female banking correspondents were deployed in villages, the financial literacy of women was augmented, leading to more of them using banks as a means of saving. The more people know, the more they invest in and embrace financial institutions.
To quantify this, it’s important to note research by Morgan Stanley, stating that gender diversity in an organisation actually results in higher returns. One can’t argue with the numbers, can they? It’s important, thus, to not only laud the influential woman leaders in finance, but also to understand why they are still fewer in number than the male leaders, and to ultimately look at different ways to bring more women up in finance.
And how do we break the fiscal ceiling?
There are two ways to look at this. One is the top-bottom approach – More women at the top inspire and encourage more women to become a part of the finance labour force. The second approach examines the core – Ensuring education for girls and creating awareness on their career prospects in finance, will draw in more women, and will empower and equip them with the knowledge and skills required. Both these perspectives are important, and a two-way solution would be the ideal approach to the fiscal ceiling.
Advice on a career in finance needs to become an essential part of counselling in schools and colleges, for both men and women. Young women should be provided the scope to look beyond their usual fields of choice. For sales positions, it is also imperative to ensure utmost security for women when they have to travel, rather than avoiding female hires altogether. The Young Women in Investment initiative, for instance, is already attempting to spread greater awareness on the investment field being a viable option for young women. With boot camps and paid internships, as well as extensive learning opportunities with industry leaders, programs like these are absolutely essential to open the eyes of both potential candidates as well as the people responsible for recruitment.
There are already several big names breaking the stereotype that finance & investment is a field purely for men. With these inspirational names at the helm, it’s the right time to inspire new generations of girls to foray into the finance domain. Not only will this ensure that more women become leaders in the industry, it will also open the doors of investment and banking services to more women.
Ruhie Pande 