The rise of women in finance

In March 2022, during International Women’s Month, I wrote the article “Breaking the Bias on Women Investors,” where I advised women to start investing to achieve financial equality and independence by capitalizing on their qualities of being good savers, diligent in research, responsible risk takers, disciplined, patient, nurturing, and empathetic. I concluded my article by saying that investing will help secure not only their personal financial future, but more importantly, the financial future of their family.

For this year’s celebration of this important event, I will recognize women in the financial services industry and how they are breaking the bias for women in finance. Just as women investors are securing their financial future, these women are also helping shape the future of the finance world, and more importantly, the global economy.

Where are the women in finance?

The financial services industry is broad – covering sectors such as commercial banking, investment banking, private equity/venture capital, corporate finance, portfolio management, wealth management, financial planning, insurance, and payments.

Speaking of banking, there’s Cristine Lagarde, who has been president of the European Central Bank since 2019 and before that managing director of the International Monetary Fund. Then there is Jane Fraser, CEO of Citibank who shocked Wall Street upon her assumption of office with the announcement that Citi would be adopting a hybrid work setup, branding itself as the “bank with a soul”.

In investment banking, we see many women heading this business: Goldman Sachs, JP Morgan, Morgan Stanley, and Citigroup; in private equity and venture capital, there are women managing billion-dollar funds; women who have doubled their portfolio while keeping their responsibilities as partner and parent. In the insurance business, there are women in global senior leadership positions in Aviva, AXA, QBE, Allianz, Manulife, among others, and in digital payment channels which exhibited significant growth during the pandemic there are many women leaders who help ensure that payment technologies adapt to the ever-shifting habits of customers.

In the Philippines (without naming names in case I miss someone) I can count at least six female presidents of commercial banks, four CEOs/COOs of insurance companies, and four presidents of asset management firms. There are also women who are Chief investment officers or head banking business units, and young women managing private equity funds actively investing in women-led businesses This is reflected in the Grant Thornton Women in Business Report covering all industries in the Philippines that showed that this year:

49 percent of women hold senior management roles, significant increase from 39 percent in 2022.

28 percent of women occupy the CEO/managing director/CIO positions versus only 15 percent in 2019.

I can also add that there are female board members who are chairs and independent directors of financial institutions, both private and publicly-listed; although the current 17 percent women in boards of publicly-listed companies (PLCs) can still be improved.

The Philippine Business Coalition for Women Empowerment will conduct a study entitled “Census on Women in Executive Leadership Teams in Philippine PLCs” to provide statistics on female senior managers and leaders in PLCs. It seeks to identify trends in women leadership positions, and promote the increase of female representation in all management levels as a potential indicator of improved business performance and sustainability.

What makes women good leaders?

Women exhibit traits and characteristics that make them effective leaders not only in the financial services industry, but also in business in general. Coincidentally, this was a question in a panel organized by the Employees’ Confederation of the Philippines, entitled “Women, Rise Up: Emergence of Women Leaders” where I was a speaker. I can cite many traits, but would like to highlight the following:

Women are great listeners who excel at communication and are able to listen carefully and empathize to make people understood.

Women are nurturers: borne out of their parenting and caregiving responsibilities.

Women are able to achieve work-life balance which makes them easier to approach on sensitive matters.

Women are inclusive, with a tendency to reach out and care more; they focus on teamwork, relying on others to be part of the decision-making process.

Women are good multitaskers who have the ability to respond to simultaneous and different tasks.

Women are resilient and able to deal with crises with compassion and patience.

Women have high emotional intelligence and have the ability to recognize their own emotions and relate to those of others.

What’s next for women leaders in finance?

While it may seem that women have achieved great strides as leaders in the financial services industry, the fact remains that there continues to be a gap in female leadership and representation in this industry. The 2021 Deloitte study “Within Reach” the study noted that “even with the recent increased focus on DEI initiatives, the proportion of women in leadership roles within financial services firms has modestly risen from 22 percent to 24 percent and projected to grow to 28 percent in 2030 – still below parity.” The study also spoke of the multiplier effect where for every woman added to the C-suite, three women rise to senior leadership roles – a good reason for bolstering efforts to achieve gender equity.

As I have always emphasized, for women to have greater leadership opportunities and move the needle towards equity, organizations must be intentional, proactive, and deliberate in adopting policies to eliminate the systemic biases that have propagated the disparities in gender equity. We need to capitalize on the resiliency, flexibility, collaborative and collective traits of women, as implementing bold and innovative and gender equity strategies can spell the difference for the future of the financial services industry.

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The author Ma. Aurora Geotina-Garcia is chairperson of the Shareholder’s Association of the Philippines (SharePHIL), vice chairperson and president of the Institute of Corporate Directors (ICD), and founding chairperson and president of the Philippine Women’s Economic Network (PhilWEN) and co-chair of the Philippine Business Coalition for Women Empowerment (PBCWE). She is president of Mageo Consulting, a corporate finance advisory services firm.

To know more about SharePHIL, visit bit.ly/m/sharephil.