As soon as she walked into the room, heads turned and whispers began. All eyes were on the only woman in a sea of suits - the newly hired Chief Financial Officer at a major investment firm. Some were skeptical, others were impressed, but everyone was curious about what she would bring to the table.
It's no secret that the finance industry has long been dominated by men, but times are changing. Women are stepping up and demanding their seat at the table, bringing fresh perspectives and innovative solutions to the world of money management.
And with good reason - studies have shown that companies with more women in leadership roles tend to be more profitable and financially stable.
Quantic says that women cover about 46% of employment in finance. Only 15% acquire the executive position. The C-Suite positions are usually dominated by men.
So, the question begs to be asked:
- Few Mentors, few role models, less motivation.
Mentoring can boost minority groups to managerial positions by 9% to 24%, says Quantic. But fewer C-Suite women will barely be able to inspire others to be a part of the industry.
- Work-family balance is challenging.
People follow “work-life balance”, and women follow “work-family balance”. Even today, a working woman is expected to cook food, clean the house and take care of the family after work. You might argue that times have changed, but for many women still, not so much.
- “It’s a competitive field.”
Confidence can be a real downer, isn’t it? Some women assume that finance is competitive and that they lack the necessary skills to fill the positions of CFO, CEO or others.
- Fewer women opt for MBA
With 41% of women of all full-time MBA students, men still have the dominance. They lack encouragement to opt for it and make a career in finance.
Despite the curveballs that life throws on them, there are some women in our country that have surpassed these plights, shattered the glass ceiling, and are worthily leading reputed MNCs of the finance industry.
Take a look at the examples:
… and many more!
It's time to recognize the value that women bring to the financial world and break down the barriers that have kept them from reaching the top. Let’s explore why organizations need more women in positions of financial power, and how we can work together to create a more inclusive and successful industry.
According to a study by the IMF (International Monetary Fund), if equal women join the workforce, then the GDP of our country is believed to increase by a whopping 27%!
Think about it! Women's workforce can make one whole country perform. Then, what could be the situation of an organization?
Monetary gains and market value are the only languages of organizations. And a wise decision is always better than continuing the inherited company practices.
Acquiring women in an organization to handle money is a wise decision. How? Here’s how:
1. Women’s predictions can boost your financial performance
Women are naturally cautious. Thus, they analyze the information thoroughly and gain the ability to predict almost accurately. In finance, these skills are essential for remarkable performance.
The analysis of the Morgan Stanley Study revealed that organizations with a greater proportion of women in the employee base gain higher returns with less volatility and better performance.
2. More women, more innovation.
An IMF study found that banks with higher shares of women board members had higher capital buffers, a lower proportion of nonperforming loans, and greater resistance to stress.
Women have traditionally been underrepresented in finance and accounting positions, which means that they may have unique perspectives and ideas that have not been considered before. By bringing more women into these roles, organizations can tap into new sources of creativity and innovation.
A BCG study concludes that companies with above-average diversity report an average innovation revenue of 45%. It is 19 percentage points higher than the companies with below-average diversity. It proves that innovation does lie in gender diversity!
3. Women are not afraid of numbers.
While it may be a stereotype that women are bad at math, the truth is that women are just as capable as men when it comes to handling numbers. In fact, women may be even better at managing money since they are less likely to take unnecessary risks and more likely to budget carefully.
Moreover, when it comes to managing money, attention to detail is critical. Women have a reputation for being more detail-oriented than men, which means they are less likely to overlook important financial details that could impact the organization's bottom line.
4. Women are better risk takers.
Well, women are no astrologers. They just think things through!
The research of psychologists concluded that women can imagine the bigger picture of risk and its various effects. Therefore, they can understand the current as well as predict future situations in a better way.
Finance majorly works on numbers and predictions, and women’s ways of thinking can significantly impact the industry.
To handle money and deal with the finances is easy-peasy for women! Their aptitude can very-well justify the performance of the industry.
So, ladies, don’t pull yourself back! You already have what it takes to be a financial expert. The next step? Fine tune your skills and ace them with an MBA in Financial Strategies from NICMAR. This specialized program enables you to train under experienced hands to learn the fundamentals of finance and learn to apply technologies such as fintech in the banking, insurance and financial services industry.