A history of women in finance

By Nicki Aldous, Group Financial Controller, and Jennifer Harrison, Content Lead

‘Women in the workplace’ has been an evolving landscape over the last century, and the history of women in finance is a story of gradual progress against significant obstacles. As part of our ‘Women in Finance’ segment, leading up to the FRWRAs, we decided to explore women’s journey into the financial services sector, examine the current state of affairs, and consider some of the strategies in place for promoting diversity and equality across the industry.

Early roles for women in finance

As you might expect, the earliest role for women within banks was as customers — albeit a very small minority. Before the Married Women’s Property Act of 1882, women couldn’t own property; it was considered to be under the ownership of their husbands. Many banks required a woman’s husband’s authorisation before allowing her to open a bank account. Therefore, in many cases, the women who did have bank accounts had gained their money through inheritance from a deceased husband or male relative. It wasn’t until the early 1900s, when more women began working, that banks started catering to those with smaller incomes, including women. As the decades passed and more women began to work for banks, the banking business diversified, catering to the interests of a wider range of customers, including women.

Women entering the financial workforce

The 1900s saw women entering the world of finance as workers, primarily in clerical and secretarial roles at first. However, World War I and World War II brought opportunities for women as men went off to fight, leading to women taking on more senior roles in financial businesses. Although, post-war, many women were pushed back into more ‘traditional’ roles, a definite shift had occurred, with many women across the country wanting to continue working in what had previously been male-dominated roles. The 1960s and 1970s saw the rise of the women’s liberation movement, leading to increased advocacy for gender equality in the workplace. The establishment of organisations like Catalyst (founded in 1962) and the National Association of Female Executives (1972) provided support and advocacy for women in the corporate world.

Legal milestones and progress

It wasn’t until the 1970s, when Barbara Castle introduced the Equal Pay Act, that men and women were to be treated equally regarding pay and employment conditions. This was followed by the Sex Discrimination Act of 1975, which protected men and women from discrimination on the grounds of marital status or gender. Although the challenges facing women in the workplace were not going to be eradicated overnight, equality and equal opportunities were now expected. For the first time, legally at least, the obstacles that had inhibited women from advancing in the workplace had been removed.

In 1988, the first female Senior Official was appointed at the Bank of England, and in 1999, the first female Chief Cashier was appointed. The new millennium has seen continued efforts to break the glass ceiling, with more women achieving leadership positions. However, significant gender disparities still exist, particularly at the senior management level.

Current state of gender equality in finance

In 2023, data from Statista showed that the UK's financial and insurance sector employed approximately 568,000 full-time men, with a median salary of £53,434. In contrast, only 381,000 women held full-time positions in the same sector, earning a significantly lower median salary of £40,526. This large pay gap is partly explained by the underrepresentation of women in leadership positions; the Women in Finance Charter reported that in 2023, women made up only 35% of senior finance roles.

So, while it’s evident that doors are opening when it comes to entering this industry, the data show that the climb up the ladder is still much harder for women than for men. Data shared by Fortune from the London School of Economics showed that women in the UK are four times less likely than men to be among the top 1% of earners in the financial profession. The underrepresentation of women in leadership and the gender pay gap are just some of the challenges that the finance sector still faces concerning gender diversity. With so few women in senior roles, financial businesses are not always hearing a female perspective when it comes to developing strategies to promote gender equality. The lack of women can also mean limited access to networking and mentorship opportunities for those women trying to ascend into leadership positions, seeking someone to aspire to.

What can businesses do to improve diversity and equality?

Naturally, there is no one-size-fits-all solution, but all businesses — in this industry and beyond — can begin to take intentional steps to create a workplace where women can thrive. Some strategies a business can implement to promote inclusion include:

Leadership commitment

• Senior executives and boards must prioritise gender diversity and make public commitments to improve.
• Measurable goals for gender representation at all levels should be set and reviewed regularly.

Mentorship, sponsorship programmes, and networking events

• Establishing mentorship programmes is a great way to support women’s career advancement.
• Encouraging senior leaders to sponsor high-potential female employees.
• Creating and supporting networks and forums for women in finance to share experiences, advice, and opportunities.

Flexible work arrangements and supportive policies

• Offering flexible working hours and remote work options to accommodate different needs, particularly for those balancing family responsibilities, which is more often the case for women.
• Enforcing policies that support work-life balance, such as parental leave and childcare support.
• Ensuring fair recruitment and promotion practices.

Bias training and inclusive culture

• Implementing training programmes to address unconscious bias and promote an inclusive workplace culture.
• Encouraging open dialogue about diversity and inclusion issues, including conversations around intersectionality. Progress will stall unless the unique issues facing different groups of women are addressed.

Transparency and accountability

• Regularly publishing gender diversity statistics and progress reports, both internally and externally.
• Holding managers accountable for meeting diversity goals.

By implementing just some of these strategies, the finance sector can continue to move towards greater gender diversity and equality, benefiting from the diverse perspectives and talents of a more inclusive workforce.