Opinion
Paving the way for female leadership in finance
Promoting women in finance is not just about social justice - it directly contributes to the success of financial organizations.
The gender gap in the financial industry, as in many other fields, still exists and demands immediate change. According to a global study by BCG (Boston Consulting Group), women enjoy gender parity in junior and mid-level positions within the financial services industry, but only about a third of them have reached senior management roles, and in just 13% of the public companies surveyed, women serve as CFOs. The situation in Israel is not much different.
This inequality is surprising, especially given that the study indicates that women’s unique capabilities significantly contribute to the resilience, innovation, and business performance of financial institutions. For example, companies with above-average gender diversity generated 19% more economic value from innovation than those with below-average diversity. In companies that promote women, innovation accounts for 45% of total revenue, compared to just 26% in less diverse organizations. Additionally, a global S&P study found that companies with female CEOs or CFOs saw a 20% average increase in stock price momentum within 24 months of their appointment.
Considering that the financial services market is valued at over $33 trillion annually and is one of the cornerstones of the global economy, the lack of adequate female representation in top management positions is a luxury no financial institution can afford. Gender diversity is not just a moral imperative - it is a strategic approach that provides a competitive edge in the market.
Women in finance face a series of challenges that hinder their rise to the top. These include structural, cultural, and even psychological barriers that prevent many women from aspiring to senior leadership roles. Additionally, internal corporate perceptions that top positions are more suited to men can discourage women from pursuing leadership. Beyond that, many women lack access to mentoring opportunities or professional support systems that could guide them in advancing their careers.
There is no magic solution to this challenge, and at times, it feels like for every step forward, we take one or two steps back. Many of us remember the golden era of women in Israeli banking when the CEOs of all major banks were women who led the industry to impressive achievements. This period proves that it is possible to replicate such success today. All that is required is hard, systematic, and at times, Sisyphean work.
One of the keys to progress is raising awareness among both men and women that this is a real issue and a significant challenge for women in finance. Throughout my career, I have met many supportive men who saw me as an equal, yet they often failed to recognize the structural, psychological, and other barriers that women face in the industry. Furthermore, there needs to be a deeper understanding of the sacrifices and costs women must bear to reach and maintain top positions. What does it take for a woman to reach the top? What does she have to sacrifice to stay there? These are important questions to consider.
Second, financial organizations must set clear goals for promoting women to senior management roles and publicly commit to these objectives. Publicizing these commitments will create accountability and encourage more women - both within and outside the organization - to aspire to leadership positions. Naturally, as the number of female candidates increases, so does the likelihood that more women will be appointed to executive roles.
Third, companies should actively cultivate talented women in mid-level financial positions by offering structured career advancement paths, professional training programs, financial support for higher education, and more.
Fourth, it is crucial to establish a network of senior female executives in finance - both within and outside organizations - who can serve as mentors, role models, and sources of inspiration for other women. These mentors can help build confidence in young professionals and encourage them to aim high. This network should also include female fintech entrepreneurs who are not only achieving success but are also driving transformative changes in banking, insurance, cryptocurrency, and other financial sectors.
Additionally, it is important to encourage engagement with women’s professional communities that focus on workplace advancement, such as the Woman2Woman program by the 8200 Alumni Association and Fintech Ladies IL, which promotes women in finance and other industries.
Finally, we must connect the younger generation of girls to the world of finance. Organizing meetings between young women and senior female financial executives can expose them to an exciting and challenging career path, paving the way for their future success.
Promoting women in finance is not just about social justice - it directly contributes to the success of financial organizations. Creating equal opportunities, establishing mentorship programs, and encouraging women to pursue senior leadership roles are essential steps in breaking gender barriers and building a more diverse, thriving, and forward-looking financial industry.
Noa Gastfreund is Business Development Manager, Middle East, at Airwallex.
