Reshaping Finance: Unlocking the Potential of Women as Investors and Leaders in Financial Services.

As I am a strong woman advocate in generally everything, the more I look into Trading and Financial services the more I see how woman can reshape finance and benefit it hugely...

Women have the power to transform financial services, both as investors and as influential leaders within financial institutions. By effectively engaging women as clients and empowering them as decision-makers, the financial industry could unlock an estimated $700 billion in revenue.

Studies show that women often make strong investors, yielding higher returns when making financial decisions. It's time to consider the role women play in financial markets and how we can support their advancement as clients and employees. This opportunity not only promotes economic empowerment but also drives societal progress.

Addressing the Gender Wealth and Investing Gap

Despite these opportunities, women are still building wealth at slower rates than men. According to the OECD, women receive 26% less income from pensions than men. Closing this gap by enhancing women’s access to financial markets and encouraging their investment activities is essential to achieving long-term financial security.

How can we further encourage women’s participation as investors? If financial institutions provide tailored support for women, they could tap into this $700 billion revenue opportunity.

The Importance of Financial Empowerment for Women

Women face specific challenges in wealth creation. Many shoulder unpaid caregiving roles and household work, often resulting in part-time employment or missed promotions. While over 80% of women feel confident managing short-term family finances, only 23% feel secure leading long-term financial planning, such as investing and insurance. This lack of confidence can impede wealth-building and reduce engagement in investment activities.

If women invested at the same rate as men, an additional $3.22 trillion in global capital could be unlocked according to my research. Women also tend to outperform men by 1.8% in annual returns and are twice as likely to incorporate ESG (Environmental, Social, and Governance) considerations into their investment portfolios. These choices not only support communities but also align with sustainable investing principles.

Increasing Women’s Representation in Financial Services

Within the finance industry, women remain underrepresented in decision-making roles. In 2023, women occupied only 18% of C-suite positions globally, and their presence at other senior levels is similarly low: 30% of board members, 22% of executives, and 27% of senior management in large companies. This indicates a significant gap in female representation in leadership, especially in roles involving direct financial decision-making.

Evidence suggests that when women assume leadership positions, they often excel. For instance, hedge funds managed by women have historically yielded returns twice as high as the average hedge fund.

Additionally, companies with diverse boards demonstrate higher business ethics, stronger corporate citizenship, and more effective climate strategies.

Challenges and Opportunities for Change

Despite progress at entry levels — with women comprising over 50% of entry-level finance roles in the U.S. — female representation drops sharply at senior levels, especially for women of color. This decline highlights a gap in advancing women to executive roles and underscores the importance of diversity-focused recruitment and retention strategies.

“Continued efforts to promote diversity and support women in finance and entrepreneurship are fundamental to unlocking their potential for meaningful change,” notes Sonia Weymuller, Co-Founder of VentureSouq.

When venture capital firms have female leadership, they make inclusive investment decisions through diverse perspectives on their committees.

One effective approach to retaining female talent is offering flexible work arrangements and benefits like extended maternity leave.

A 2021 Catalyst survey found that women with caregiving responsibilities who had access to flexible work options were 32% less likely to leave their jobs. However, overly flexible schedules can inadvertently hinder career advancement by limiting networking and collaboration opportunities, making a balanced approach essential.

Creating a More Inclusive Future in Finance

To truly reshape finance, we must provide resources that enhance financial literacy for women and empower them as wealth creators and decision-makers. Addressing the gender gap in financial services has the potential to unlock significant economic value and ensure a more secure future for women worldwide.

By fostering a culture of inclusion and accountability within financial institutions, we can pave the way for a future where women play an integral role in shaping financial markets. This shift toward inclusivity will lead to a stronger, more equitable financial industry that benefits everyone.

Get intouch with me at Boston Quantara where I am building a platform for woman to inspire eachother and discuss why there is a lack of woman in finance based roles.

Also follow me for updates on my podcast where I will be discussing all these issues with some truly inspirational woman!