Fintech Has a Gender Problem

In many ways, women have a great deal of progress to celebrate when it comes to working in the fintech world. A demographic that enjoys a longer standard lifespan and controls $35 trillion of household financial assets in the United States, women have come to make up 52% of workers in certain financial services jobs.

Unfortunately, according to the most recent numbers from the Kauffman Foundation, that figure applies to only entry-level positions; in executive positions, female representation shrinks by a staggering 80%.

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“People are saying that there’s a rise in momentum for women in business, but the numbers still don’t show it,” said Stax Chief Executive Officer Suneera Madhani, referencing the strikingly small portion of venture capital funding secured by women-led firms—only 3% of all funds in 2021. “I’m not asking for the number to be a hundred percent. But it shouldn’t be 3%.”

Madhani’s concerns are of particular note in light of the benefits that female leadership has been proven to bring to companies. According to that same Kaufmann Foundation study, female-headed companies yield not only more diverse organizations but more capital efficient ones, bringing in a 35% greater return on investment on average.