Women make up almost half of all employees in the UK banking and finance sector, but their visibility fades the further up the career ladder you go. According to the 2022 New Financial Annual Diversity Report, only 28% of senior roles in the sector are held by women, whilst data from the ONS suggests the UK banking and finance sector has one of the largest gender pay gaps across all industries.

Lynne Colgate, Partner & Head of Interim, Finance Practice at Eton Bridge Partners, explores the current state of play for women in the finance sector and considers why gender parity remains elusive at senior levels. Lynne spoke to transformation coach Jess Harvey, who has held a number of senior roles at big-name investment banks in a finance career spanning over two decades, about her personal experience of carving a path to the top and strategies for overcoming potential barriers.

The evidence suggests gender bias remains an issue

A little over fifty years ago, the London Stock Exchange made history by allowing female traders onto its trading floor for the very first time. We have come a long way since then, but it remains the case that the higher echelons of the UK’s banking and finance sector are dominated by men. Women make up less than a quarter of the executive committee level of major UK banks (2022 New Financial Annual Diversity Report); no leading UK bank currently has a female CEO and according to data provider MergerLinks, not a single woman made it on to the list of top 30 M&A dealmakers in Europe last year.

When it comes to pay, the picture is just as stark. The mean gender pay gap in the UK banking and finance sector stood at 36% in 2021 (ONS Gender Pay Gap Data); that’s among the highest of any industry.

Investment banks’ bonus data shows an even bigger chasm between the sexes with HSBC reporting a 61% bonus pay gap between men and women in its investment banking division in 2021 and Barclays a 59% gap.

Sexism on the trading floor was rife in the noughties – rising through the ranks would have meant living with that on a daily basis for years and that may be one reason why we see a paucity of senior female investment bankers twenty years on. Even today, women can face a dilemma on how to present themselves in what remains a male-dominated environment. They may be criticised for speaking too quietly, being too feminine or being too aggressive if they try to act more masculine. Criticism can come from other woman as well as men and can be direct, present as unconscious bias or as almost imperceptible discrimination.

Some women may try to overcome these barriers by trying to take on the same characteristics as the men they work with. ‘I initially tried to be one of the boys, put on a hard armour but over time, I worked through this,” says Jess. She ultimately found alternative ways of making her mark; advocating for herself and her rights and cultivating a supportive network of peers, Jess also says she actively sought out mentors and sponsors who could offer advice and champion her career.

Imposter syndrome could be part of the problem

The British Psychological Society, says imposter syndrome has three key features: feeling that other people have an inflated perception of your abilities; a fear that you will be ‘found out’ and a tendency to attribute success to external factors such as luck. Imposter syndrome cuts across gender, but data suggests that it could be more common among women in the financial services sector than men. Jess cites a 2021 KPMG study which found that only 27% of women in the sector had confidence that they would reach their desired career level versus 53% of men. Whilst a 2020 survey by Bain & Company found that 54% of women in business services doubted their ability compared to only 25% of men.

Feelings of inadequacy can mean someone is less likely to go for a promotion, be assertive in pay negotiations or seek a visible role in the organisation. Jess says that developing self-confidence strategies is an essential part of overcoming imposter syndrome. She flags three helpful areas to work on:

• Identifying and reframing any negative self-perceptions
• Celebrating accomplishments and recognising your own capabilities
• Soliciting constructive feedback to foster personal growth

Perhaps if more women had greater confidence in their own ability, we would see a more even gender split at the top levels of banking and finance, and commensurate balance in bonus cheques.

Work-life balance challenges may affect women more than men

Managing a career and family commitments is a challenge that both men and women will relate to. But evidence suggests that working women are spending more of their time on childcare and housework than working men. According to the ONS, in 2022 employed women living with dependent children spent on average an hour and a half more per day on unpaid housework and childcare than employed men living with dependent children. *Read Lynne’s blog: ‘Female CFOs are still scarce: is a lack of parity in the home holding back the impact of gender inclusion policies?’

The shift to flexible working patterns has not necessarily led to a more equal split of unpaid work in the home. The UK Household Longitudinal Study has found that working from home could in fact reinforce traditional gender roles by giving mothers more time at home, which they may spend on housework and childcare, while fathers typically expand the time they spend working.

The juggle can get very real – working on a deal whilst attempting to watch a child’s sports day on facetime is just one example; working parents will have many more painful anecdotes of their own to share. Jess also cites challenges around, “navigating societal and cultural norms;” the family who decide to prioritise the mother’s career and put Dad in charge of toddler groups and school runs may feel isolated. Workplace policies around maternity and paternity leave can also have an impact on the choices parents make over the sharing of unpaid childcare and housework.

Getting the right practical arrangements and strategies in place from the start is the best way to keep all the plates spinning and achieve success and longevity in a career. Jess advises setting clear boundaries and priorities at work and ensuring that you understand and fully utilise flexible work arrangements. Effective time management strategies are also crucial says Jess, as is cultivating a robust support network both at home and in the workplace.

There is still some way to go before we can say that the banking and finance sector has achieved true gender parity – the glass ceiling may have some cracks, but we are not seeing enough female representation at senior levels to say with confidence that it has been shattered.

In part two of this blog, we dive into powerful strategies for overcoming barriers female leaders face with Jess – watch this space!

At Eton Bridge Partners, we are committed to supporting organisations to build diverse leadership teams and develop inclusive cultures. We hope you have found this blog insightful and, as always, we would be keen to hear your thoughts. Please get in touch with Lynne or Jess to continue the discussion.