Finance stands out as one of the highest-paying and most influential sectors globally, yet women pursue careers in finance at significantly lower rates than their male counterparts. Almudena Cañibano and Marion Festing explore the barriers that hinder female students from specializing in finance.
This industry has immense power, controlling the flows of capital and determining which businesses, technologies, and industries prosper. In essence, finance shapes our current world and the future we will inherit. However, despite its significance and the attractive salaries it offers, women remain underrepresented in this field. Recent research indicates that entrenched gender stereotypes and a lack of early exposure to finance-related opportunities may be significant factors preventing female students from considering finance as a career option.
The Impact of Stereotypes on Career Choices
A survey conducted with 400 first-year Master’s in Management students uncovered distinct differences in how male and female students view finance. Female participants expressed considerably less interest in stock markets and financial investments than their male peers. Instead, they leaned towards careers in travel, culture, fashion, and design.
While both genders acknowledged the importance of financial security, achievement, and positive workplace relationships, a notable gender divide emerged regarding work-life balance. Female students prioritized this aspect more heavily, reflecting broader societal expectations about gender roles and career ambitions.
Unsurprisingly, these differing attitudes influenced students’ career selections. Male students tended to favor a finance specialization, perceiving it as a more appealing career path, while female students often opted for sustainability and marketing. However, are stereotypes the sole reason? Our study suggests that another factor, experience—or rather, the scarcity of it—may be equally influential.
The Importance of Experience and Exposure
Analysis from the survey revealed that nearly half of the male students had previous finance experience, such as internships, compared to just one-third of female students. This disparity is crucial because exposure to finance significantly increases the likelihood of students continuing their education in this field. It’s a classic illustration of “you can’t be what you can’t see.” If female students lack early insights into finance, they may never view it as a viable career path.
Interestingly, other potential influences, such as having family members or close connections in finance or leadership roles, did not have a significant impact on career choices. Focus group discussions indicated that many female students were unaware of the diverse roles available within finance. The industry encompasses much more than investment banking; it includes positions in sustainable finance, fintech, risk management, and impact investing, among others. Without this knowledge and firsthand experience, finance may appear as a narrow, high-stakes, male-dominated realm that discourages women from pursuing it.
The Broader Implications
The lack of women in finance is not merely an equity issue; it has significant implications for the economy, society, and the future direction of industries worldwide. Finance plays a pivotal role in determining which businesses receive funding and which sectors grow. The exclusion of women from these discussions may lead to investment decisions that reflect a limited range of perspectives, potentially overlooking industries that disproportionately affect women or align with their interests. Furthermore, finance is one of the highest-paying sectors. The persistent gender gap in finance contributes to the overall gender pay gap, restricting women’s economic power and financial independence. Encouraging more women to enter finance is not just about equality—it’s essential for economic empowerment and societal progress.
Strategies to Break the Cycle
Tackling these disparities requires a multifaceted approach. Since early exposure plays a vital role in shaping career interests, initiatives that introduce young women to finance prior to making significant career decisions can lead to transformative outcomes.
For instance, our Women in Finance Chair is committed to addressing this gap through targeted programs that equip female students with the resources, knowledge, and confidence to pursue careers in finance. In addition to raising awareness through teaching and international case study competitions focusing on career opportunities within the finance sector, we are also offering personalized advice and support for female management students through an array of programs:
- Mentoring programs that connect female students with successful mentors in finance, offering guidance, career advice, and networking opportunities.
- Mastermind groups that provide valuable insights on essential career-related topics, peer support, and a platform for women to navigate challenges and share experiences.
- Speed-dating career events designed to help students explore the wide range of opportunities in finance, from investment banking to impact investing.
By fostering awareness, providing mentorship, and challenging outdated stereotypes, we aim to create a more inclusive financial sector. When more women enter finance, everyone benefits—from a more diverse investment landscape to a more equitable economic future.
The time to take action is now. Let’s ensure that the next generation of financial leaders reflects the diversity of the world they will shape.
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