Female Leadership in the Financial Services Industry

Throughout the 21st century, financial organizations have attempted to promote diversity and inclusion within their institutions. However, a 2019 United States Government Accountability Office report found that from 2007 to 2015, overall management representation of women remained unchanged in the financial services industry. In fact, according to a McKinsey & Company survey, women currently occupy fewer than one in five C-Suite roles in the financial industry. Credit unions are doing better than the industry overall – per CUNA, 52% of credit union CEOs are women. But there is still work to be done.

Leaders cannot sit idly by while this egregious trend continues – we must all work to improve representation of women at executive and leadership positions within our industry. Below are several ways in which credit unions can begin to close the gender gap and contribute to improving diversity, inclusion and equality.

Understand Your Institution’s Demographic Makeup

Before substantive action can be taken, leaders must have a foundational understanding of their institution’s demographic landscape. This holistic outlook will provide leaders with invaluable insights into their organizational structure and culture as well as the overall effects of their current policies. Once a comprehensive perspective is achieved, leaders can then begin making educated decisions on how to address the specific demographic challenges plaguing their organization.

Neutralize Gender Bias

Gender bias in the workplace directly impedes women’s ability to progress and ascend to leadership positions – full stop. Whenever I speak out about this issue, a common retort I hear is: If gender bias is so prevalent, how did you become a CEO? This is a great question that has a simple answer. I am simply an outlier of a highly entrenched rule. Just in case there is any doubt, Catalyst research has found that women account for a mere 4.8% of CEOs within the S&P 500. As leaders, we cannot succumb to such arguments. We must speak loud and clear within our institutions about the effects of gender bias and how it stifles women’s growth. The first step in solving any problem is to admit a problem exists. Therefore, financial institutions should openly and explicitly admit that gender bias exists and relentlessly seek out solutions that eliminate its origins and effects.

Institute Mentoring Programs

Financial institutions have failed to systematically establish mentoring programs to aid women in growing their skillsets and climbing the leadership ladder. A McKinsey & Company survey of more than 14,000 employees at 39 financial service companies found that “only 58% have formal mentorship programs.” Because men disproportionally hold leadership roles, the onus is on them to create a culture that fosters the development of mentoring programs. Yet a Center for Talent Innovation study found that “two-thirds of male managers balk at counseling more-junior women.” Credit unions have the chance to lead the charge against this trend, give women of all levels access to mentors and ensure mentoring programs are an essential component of their institutions.

Implement Flexible Schedules

According to a Werk survey, 95% of women state the need for some type of flexibility in their work schedule. However, the same survey found that only 34% of women have access to such flexibility. This “flexibility gap” unduly stifles women in the workplace, a Harvard Business Review article stated. According to a United Nations report, women do more than twice as much of the domestic work of men. Clearly, despite some progress, women still carry a bigger burden of maintaining the home life. As such, financial institutions should consider implementing schedules that empower women with flexibility to be successful in both their home and work lives.

Across all industries, leaders have to begin fighting the underrepresentation of women in leadership positions. The financial sector can be the industry that sets the benchmark for talking about gender bias, creating mentoring programs and implementing flexible schedules. We must be open and honest about the gender biases that exist, make gender equality a strategic priority, and provide women the opportunity and resources to succeed and advance.

Robin Kolvek is CEO at EPL, Inc. She can be reached at 205-408-5300 or robin.kolvek@epl.net.