It is interesting to think about the fact that it was only a little over a hundred years ago that we could meaningfully talk about women’s employment. However, when the data on women’s representation in certain areas come before us, we can realize that we are really only at the beginning of the road to gender equality. It is no different in the financial sector.

Many factors hold women back

Several studies confirm the male predominance in several financial areas. There are fewer women in senior management positions, the share of female investors on the stock exchanges is also low, and businesses founded by women receive significantly less funding – but these are just a few examples out of many.

Several factors can be behind the low representation. Even at a young age, it is strongly noticeable that adults steer boys more than girls towards financial topics and the financial sector. And if women do take a job at a financial institution, they are hindered by old habits and stereotypes that are still alive today.

Although the existence of the wage gap is disputed by many, many women face the fact that they earn less than their male counterparts. This can happen even in the case of the same position, experience and education. There is also a lack of role models: due to hindering factors, few women are simply in a position to inspire others.

The fintech reaction

Some problems are very difficult to fix. Several large companies are trying to increase the representation of women in senior management with quotas, as well as draw attention to gender inequality with sensitization programs.

Although fintech is no different from other financial sub-sectors in many respects, market players try to provide assistance with smaller solutions: several startups are launching financial services with a full focus on women.

A digital bank specialized for women

Lucy was one of the first neobanks to specialize specifically in the financial needs of women. The Singaporean fintech company now focuses on female-headed households and female sole proprietorships. With a dedicated application and bank card, it helps mothers, housekeepers and entrepreneurs with their payments and managing their expenses.

The Latin American Jefa tries to remove all obstacles in order for as many women as possible to have a bank account. The startup offers a free, fully digital bank account tailored to women’s needs. And it advertises all this specifically to women, also through marketing channels potentially neglected by other neobanks.

Gateway to the stock market

One of the biggest names in the world of women’s investments is Ellevest. In addition to online trading, the company also offers private wealth management, pension savings and personalized financial advice. Its biggest attraction is its supportive community, which it built with the aim of showing that stock markets are easily accessible for women.

In addition to communication and community building, there is another way to target women: introducing a simple, non-distracting product. There are startups that allow you to invest in ready-made funds. All you have to do is transfer the money and you can already see how the investment is developing – no expertise is required.

Often, all it really takes is for a service provider to bring the world of asset management closer to women. After the first step, it becomes much easier to choose the right products and strategies.

Unity is strength

Finally, fintech companies also have an answer to the problem of underfunding: proactivity. If investors don’t come by themselves, startups founded by women don’t have to wait, they have to act. Crowdfunding campaigns are the perfect alternative to traditional fundraising options. Many platforms specifically support women’s projects. IFundWomen is one of the market players helping to highlight underfunded startups founded by women.

Every month, Peak’s research and consulting team prepares a comprehensive overview of the trends in the fintech world and their effects on the banking sector, insurance companies, the IT sector and government bodies. In the studies, we deal in detail with international fintech developments, which we also analyze from the point of view of opportunities and threats. If you have any questions regarding the entire circular or its individual elements, please email us at science@peakfs.io.

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