UK fintechs are less gender-diverse than the broader financial services sector, is the stark warning from the latest EY and Innovate Finance report.

It’s true that the tech ecosystem as a whole under-represents women. The 2023 Women in Tech survey found that women still only account for around 26% of those working in IT. In banking, the picture is even more bleak, according to a new report from the Centre of Economic & Business Research (CEBR) on behalf of the London Stock Exchange (LSE).

It found that in 1997 there were around 589,000 women working in the UK finance sector. By 2022, this declined by more than 30% to just over 400,000. Additionally, women in the financial sector have continued to earn less than their male counterparts over the past five years.

However, in fintech, the numbers are worse still. EY’s report found that women make up just 28% of the fintech workforce––compared to 44% in wider financial services. Only 40% of fintechs have appointed a woman to their boards, with women holding only around 10% of all fintech board seats. At management level, they represent less than 20% of company executives. 

Julia Hoggett, the chief executive of the LSE, says that gender diversity is not a "side-of-the-desk exercise". She says some of the decline in female representation in finance and banking can be explained by the fact that a much larger proportion of women worked in administration and clerical roles in the 1990s.

"Some of those roles were made redundant as a result of digitisation over the years. But I have seen data that suggests, say in investment banking, there are occasions where women will disproportionately lose roles more regularly than men."

Cost of childcare

Diversity matters for many more reasons than it’s simply the right thing to do. It also helps to improve business outcomes, and according to McKinsey’s most recent diversity report, “the most diverse companies recognize I&D [inclusion and diversity] as more than a social-justice imperative; they also see it as a core enabler of growth and value creation”.

Working mothers may fare worst of all. Data released by Indeed Flex, the temporary work platform, found that two in five UK mothers say the cost of childcare is preventing them from returning to the workforce. For those with pre-school age children, 61% say the prohibitively high cost of childcare stops them from working.

Many women feel “priced out of work”, with data from campaign group Pregnant Then Screwed, finding that one in four parents who use formal childcare say that it costs more than 75% of their take-home pay.

In fact, according to the charity, Coram, the average annual cost of a full-time nursery place for a child under two in Great Britain is now £14,836. Childcare costs have risen by nearly 6% over the past year, and the availability of places has fallen.

In January, Rishi Sunak told MPs that he was “considering new plans to improve the cost, choice and affordability of childcare”. In the spring budget, the government announced some positive news for parents. In England, £4.1 billion will be made available by 2027-2028 to deliver 30 hours of free childcare for eligible working parents.

Make a career move

This is good news, but it is still a way off. So, if you’re working in the sector now and not getting the flexibility you want in order to combine work with childcare, then you could consider a job move. The Finextra Job Board has thousands of open roles to discover, such as the three below.

Generous family-friendly policies are a key benefit of a job at Starling Bank. It is hiring a Complex and Enhanced Due Diligence Team Manager in Manchester, to lead by example, inspire and motivate as well as support your team members in their development. You will lead from the front and be creative in finding ways to deliver an outstanding service to customers, and you’ll also deal firmly and efficiently with Starling’s requirement to complete enhanced due diligence on our higher risk customers. 

Ripple offers a flexible first approach to work, giving you the option to work from home, from its offices, or a combination. If that appeals, then this General Compliance Manager role may suit. You’ll manage day-to-day activities of the General Compliance team, including managing the Vendor Risk Management Program, supporting Ripple’s Business Continuity Program, and working with global compliance leads to execute and maintain program requirements.

Or, this Product Director, Business Banking at Monzo in London offers flexible working hours and can be based in the London office, or via distributed working within the UK. You’ll be responsible for the delivery, improvement and building of new products within the world of Business Banking, and you’ll also formulate strategic plans to grow Business Banking.

Explore thousands of exciting jobs on the Finextra Job Board now