Why Financial and Tech Inclusion of Women Really Matters
By Loredana Manushaqa, Innovation Management Consultant, Researcher, & Trainer
Michelle Obama Knew the Truth
“There is no limit to what we, women, can accomplish.” – Michelle Obama
I start this article with Michelle Obama’s quote for an obvious reason. We live in an era where women no longer stay silent. The only limit we have exists in our head.
Powerful Movements Are Changing the Game
A lot is happening right now. The #MeToo movement continues to gain momentum. Melinda Gates initiated and supports the #equalitycantwait movement. Additionally, we have an entire Women20 conference and the UN Women organization. All of these exist with one purpose: to empower women, draft action plans, and establish milestones for women’s inclusion into different segments of our global society.
Two Areas I Hold Dear to My Heart
In this article, I want to focus on two main areas because I hold them dear to my heart. I work in these industries. Consequently, I find myself surrounded by men in 90% of cases.
I Notice the Imbalance Every Time
There is not a single time that I attend a financial conference or technological event without noticing that most speakers are men. Most debates happen between men. The decision-making environment is mostly male-dominated. Moreover, I constantly notice that women entrepreneurs receive less funding and fewer resources. Generally, women professionals earn less than their male counterparts.
Three Reasons Women Will Shape the Future
Let me briefly make my point through three main reasons why I believe women will shape the future of Finance and Technology.
1. Women Are Essential to Economic Growth
It’s not just about gender equality anymore. It’s about smart economics.
Women Make Up Nearly Half the World
According to statistics, 49.5% of the world population is women. So, we represent roughly half of the world population. But wait… you will feel shocked to learn that only 48% of women participate in the active workforce compared to 75% of men.
It’s disappointing, right? It gets even worse. The World Economic Forum predicts that the gender gap in the US will take approximately 108 years to close. Gender parity will take approximately 202 years.
Imagine the Growth If These Numbers Changed
Now, just imagine what kind of growth we would achieve if these kinds of data changed. The economic empowerment of women will increase the GDP by 6 trillion USD. Therefore, the gender gap existing today costs the world around 15% of its GDP.
Education Must Sit at the Core
How can we accomplish all of this? It sounds like big numbers requiring big plans and big commitments. Actually, it’s very simple. Everything can succeed if we put Education at the core of everything.
Very Few Women Enter These Industries
I work in the innovation and technology industry. Recently, I stumbled upon research by LinkedIn that identified the main skills needed for 2020. Take a very close look at the Top Hard Skills. Tell me, how many women do you think work in that particular industry? Very few. Why? Because society ignores women in this regard, amongst many others.
2. Ignoring Women Has a Very High Cost
Society led us to believe that we are not smart or capable enough to perform in any of these “hardcore” industries. However, this outdated positioning costs Society, meaning “All of us,” a tremendous amount in terms of economic development and prosperity.
Ignoring Women Leads to Disaster
Ignoring women in every kind of industry, but particularly in Finance and Technology, leads to disaster. According to World Economic Forum reports, let’s call it for the sake of this article: “The Cost of Ignoring Women.” There exists at least a $700 billion global revenue opportunity in better serving women as customers and including them in the Financial World that men so heavily dominate.
Women Actually Perform Better in Certain Industries
Studies have shown that women are actually more prompt to perform better in certain industries. Attention here: we are not better, we perform better. Let’s take an example of an industry very highly dominated by men: Financial Markets Trading. Although women represent only 19% of this multi-trillion dollar market, statistics show that even though women have lower incomes and deposit less into trading accounts, they achieve higher profits.
Fidelity Confirms This Finding
This is not only a BrokerNotes report. This finding also comes from studies by Fidelity, one of the largest investment companies worldwide. Women themselves believe they are not better investors than men, even though evidence shows the opposite. Their investments and choice of portfolio over the years prove more accurate and more profitable in terms of ROI.
Overlooking Women Costs Banks Billions
We operate in fast-changing times and a volatile environment. Overlooking women could become the biggest mistake that the financial industry makes. This mistake costs banks approximately $65 billion in new revenue annually. It costs $30 billion in new net-interest for female-led SMEs. It costs $25 billion in new investment fees. It costs $500 billion in new insurance premiums. Additionally, around $80 billion of the existing market is at risk. Why? Simply because the current financial market is too busy to make strong, long-lasting relationships with women clients.
Different Is Something Greatly Feared
Such a pity, considering the world would become a better place if we left biases aside. We do have aggression, ambition, and dominance. They just manifest differently. Unfortunately, “different” is something people greatly fear.
3. Digital Transformation Waits for No Gender
As technology becomes intrinsic to our daily lives and activities, you cannot avoid noticing that women have 26% less access to mobile internet and digital technologies globally. This was one of the most discussed topics at W20 Japan in 2019. On the other hand, women driving the digital transformation and engaging in Scientific fields (STEM) represent only 30% worldwide.
The Fourth Industrial Revolution Is Here
We stand on the verge of the 4th industrial revolution. Our lives change every day from new emerging technologies. Estimates suggest that 60% of the global GDP will become digitized by 2022. We are talking here about digital economies and digitized industries. Yet, women, who make up 50% of the world’s population, hold only 21% of technology executive positions.
Why Do We Really Need Women in Technology?
Why do we really need women in technology, apart from the fact that we deserve equality? This should not become just a PR-oriented effort from companies worldwide. If they carefully did their homework, they would learn to involve women not just because they care about equality. They would involve women because it will highly improve their businesses.
Diversity Increases Creativity and Innovation
Studies prove that “Diversity” as a phenomenon increases creativity and innovation. Even men become more creative and innovative when surrounded by women instead of only men. Women tend to think differently, from multiple perspectives and angles. Let’s face it, we all know this. Women prove to be more efficient and effective at multitasking.
Women Enable Design-Thinking Faster
Women have the ability to be more empathetic. Therefore, they enable design-thinking faster. Diversity in thinking leads to better problem-solving. Yet, we ignore women again when it comes to technically enhancing products that target women. There exists an entire marketplace of products that serve women that men simply don’t understand because they don’t experience them in real life. Blame mother nature, not us.
Tech-Talent Is Lacking Worldwide
Furthermore, tech talent is lacking worldwide. This field needs more education, involvement, and effort. And we are simply not there yet.
Women Have the Power to Shape the Future
It doesn’t matter which angle you look at it. Women have the power to shape the future economies and digital transformation of the world as we know it today. Women in Tech now will enable more Women in Tech tomorrow.
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