Author and chair of Women’s World Banking, Mary Iskenderian estimates that financial services companies lose USD 700 billion in annual revenues by simply not offering their services to women
As the global economy evolves, there is a growing recognition of the untapped potential and unique perspectives that women bring to the financial sector. According to data from Deloitte India released in 2021, only 3.9 per cent of chief financial officers (CFOs) in India Inc. were women. This figure highlights the stark reality of the gender gap in leadership positions in the finance industry in India. This data underscores the persistent gender disparity prevalent in the finance sector, reflecting a significant underrepresentation of women in key leadership roles. Despite the undeniable benefits of diverse perspectives and talents, the finance industry in India continues to grapple with systemic barriers that hinder women’s advancement to top positions.
Women In Finance
“The discussion around ‘Women in Finance’ is indeed celebrated and seen with all the glory. However, the very necessity of this conversation highlights a very important question, why do we even need this topic? Why is it still not normal for people to see women taking leadership roles in the investment industry? Why does it need extra limelight? Although we have seen a significant shift in the last few years, highlighting the strides made towards gender inclusivity, finance still remains a very male-dominated field,” said Anchal Kansal, Research Analyst at Green Portfolio. Kansal further added that she does appreciate the progress that the finance industry has witnessed, specifically, women taking leadership roles and gaining more visibility but the question is how many of them get a fair chance to prove themselves. “As far as financial literacy is concerned, it is sad that women are still used as ‘just another account’ when it comes to investing. Women, who are in leadership roles, need to foster an environment that inspires other young girls to take up positions in finance,” mentioned Kansal.
Women And Their Proficiency In The Sector
Experts also highlighted that women have shown their proficiency in the financial sector and it is impossible to achieve absolute financial inclusion excluding a significant woman workforce. “In today’s world, where ‘Gender Equality’ is the Buzz word, women have tremendous opportunities in the fintech space. In a fast-developing economy, with the growing relevance of a healthy financial sector and the use of innovative technologies, fintechs have emerged as the most attractive segment to take us to the next level of growth trajectory,” said Sonal Mehta, Senior Vice President, Business Development and Strategy at Resurgent India. Mehta mentioned that women have already displayed their prowess in the financial world with several instances of women leaders in commercial banking and financial regulatory functions. Mehta further iterated that effective use of technology is an integral part of the development of the financial world, thereby creating huge opportunities for fintechs. “Women with the innate traits of efficient planning and organising with a service-oriented approach have a significant role to play in the finance world. This is all the more important from the point of being a solution finder, keeping in view the ever-growing expectations of the customers,” highlighted Mehta.
Women: Leading from the front
“Women have risen to prominence as leaders in India’s financial services sector. In fact, India’s financial landscape is spearheaded by a dynamic woman finance minister. So it comes as no surprise that India’s BFSI sector is dominated by the excellence of women leaders. This is not only evident in traditional areas like public sector banks, but also in emerging domains like digital finance, payments and insurtech. SBI’s Arundhati Bhattacharya, HDFC Life’s Vibha Padalkar, JP Morgan’s Kalpana Morparia are just a few of the many exemplary names that are leading India’s financial sector towards growth and innovation. Even the regulatory bodies like SEBI are headed by the able leadership of Madhabi Puri Buch. The commanding presence and expertise of these women continue to challenge archaic stereotypes and sculpt India’s future as a fintech leader globally. They inspire the new generations to pursue leadership roles in the industry and relentlessly contribute to India’s success story,” said Santosh Agarwal, Chief Business Officer – Life Insurance, Policybazaar.com
The Potential Of Women
Experts in finance also highlighted the intrinsic potential that women bring to the table and the ways that talent can be leveraged. “Even today, women’s participation in financial services remains poor and is a lost business opportunity. Author and chair of Women’s World Banking, Mary Iskenderian estimates that financial services companies lose USD 700 billion in annual revenues by simply not offering their services to women i.e. they can generate all this revenue without actually spending anything. The lost opportunity exists in part due to the lack of diversity in leadership and founding teams. This realisation and the business potential to serve this underserved market have been a great driver for women to join and start fintech ventures,” said Neha Juneja, chief executive officer (CEO), and co-founder, IndiaP2P. Juneja added that women leaders in the finance sector are growing at a good pace; however, they are still scarce and the advent of digital financial services has levelled access for various stakeholders. A unique trend that is accelerating women in leadership roles is building for women as consumers.
Hurdles Faced By Women
Top women leadership also stated that females face hurdles at multiple levels. Even at the local level, there are a series of obstacles that the woman workforce faces as far as access to credit is concerned. Experts also mentioned the lack of documents available with the women which retard the availability of credit. “In a far-flung village, if a woman wants to get finance, how will she get it? Firstly, she will have to do a know-your-customer (KYC) with the bank and for that, she will need Aadhar. What if she does not have Aadhar? Now, she is out of the credit system,” said Chetna Gala Sinha, Mann Deshi Foundation. Sinha further continued by stating, “If a woman does have Aadhar, what if she does not have a mobile? Again, she is out. Let’s say even if she has both of the above-mentioned things, she still does not have a credit history. Now, since she does not have a credit history, she does not have a credit score and hence, she cannot avail the loan. Therefore, we always boast about financial inclusion, but still, there is a lot that needs to be done for women.”
However, the world of fintechs at the top is full of challenges too, with a tendency towards cutthroat competition and ever-changing functional and regulatory regimes. The qualities of perseverance and adaptability to the changing environment become a prerequisite in such circumstances, and women are working towards garnering a leading edge in the current scenario of finance.
Women: Prominent Leaders
“Women have risen to prominence as leaders in India’s financial services sector. In fact, India’s financial landscape is spearheaded by a dynamic woman finance minister. So it comes as no surprise that India’s BFSI sector is dominated by the excellence of women leaders. This is not only evident in traditional areas like public sector banks, but also in emerging domains like digital finance, payments and insurtech. SBI’s Arundhati Bhattacharya, HDFC Life’s Vibha Padalkar, JP Morgan’s Kalpana Morparia are just a few of the many exemplary names that are leading India’s financial sector towards growth and innovation. Even the regulatory bodies like SEBI are headed by the able leadership of Madhabi Puri Buch. The commanding presence and expertise of these women continue to challenge archaic stereotypes and sculpt India’s future as a fintech leader globally. They inspire the new generations to pursue leadership roles in the industry and relentlessly contribute to India’s success story.” Santosh Agarwal, Chief Business Officer – Life Insurance, Policybazaar.com
Reference Link:- https://www.businessworld.in/article/Empowering-Women-Bridging-The-Gender-Gap-In-Finance-/08-03-2024-512363/