Banking on women (part 3) – gender equality means better performance; diversity fosters productivity, innovation

SRP is celebrating International Women’s Day by highlighting senior women in the structured products industry and asking them about progress made and the obstacles still to overcome.

In the third part of a feature celebrating women in structured products we look at some of the myths and stereotypes around diversity, and what companies must do to promote diversity and gender inclusion to entice young women to join their ranks in the financial industry.

What difference have women made to broader working practices and culture in structured products and banking and financial services?

Armelle Loeb: “I wouldn’t say male and female executives are better at specific roles or functions, but they would definitely do them differently. And this is precisely what it is interesting. You don’t want everyone in the company to think the same way. Diversity is also something we should all embrace because it breaks traditional cultural biases and adds new approaches and views to problem solving, strategy, etc. which you would not have otherwise.”

Isabelle Millat: “Studies show that any type of diversity is beneficial for a more productive and innovative workplace, and one that’s a great place to work, too. In that sense, growing the number of women has simply worked to the benefit of financial markets activities, whilst also making them more representative of their customers. But we still have a long way to go! We should eventually seek balance, and not favour one group against another, even if getting there requires strong actions initially, to help us catch up within an acceptable timeframe.”

Anna Pinedo: “As so many academic studies have shown, women tend to bring a diversity of thought to workplaces, and a certain degree of balance in how they approach problems, make decisions, approach risk and all of that is very helpful in the financial services sector.”

Diana van Maasdijk: “I have been an entrepreneur for over a decade so it’s hard to comment on what’s going on inside the industry. However, it must be said that women in structured products do seem to have a low profile relative to other sectors. It’s rare, for example, to see female speakers at structured product events. I have experienced many structured products events where panels include only men, and the vast majority of the audience is male. It is a missed opportunity for an important and exciting industry that would benefit from better gender balance.”

Maryline Mertz: “I think that brings me back to tenacity and adaptability. I'm not saying that you will not find these attributes in males – you certainly find them in males as well, but you will find women capable of climbing walls and literally not giving up and showing extreme tenacity. Their job is not done until the job is done. And it's not just a question of, you know, giving the right impression or leading in the right direction, but feeling the project from A to Z until it's completely closed.”

Banks and wealth managers tend to appoint women to spearhead their sustainability programmes and other more ‘touchy-feely’ areas. Is that a form of sexism in itself?

Isabelle Millat: “The higher percentage of women in sustainability roles vs the industry average may indeed have been induced by stereotypes that tend to assign to women the desire to promote societal good. Now that sustainability has moved to the core of financial institutions’ business agendas, as an instrumental component of their future performance and even licence to operate, it’s crucial that women remain promoted to leadership sustainability roles and seek to ensure gender balance in their teams.”

Diana van Maasdijk: “ESG is a growth area that is important on many levels for our future as well as an investment approach. So, if it’s an area where there is better gender balance that’s great news, as there is a growing body of evidence from organisations like McKinsey, Morgan Stanley and CFA Institute that better gender equality means better performance. That aside, it's true that you do see more women in areas like HR, Comms and CSR and it probably is a form of sexism not to have more women in areas of business such as finance, sales, etc. that affect the bottom line directly. Again, a lack of gender balance at all levels of a company is a missed opportunity for everyone.”

Maryline Mertz: “I must say I was surprised by the question. The head of sustainable finance group in our executive office is actually a man at Goldman. I wondered whether this is not just two topics which emerged in the market at the same time. We definitely have a diversity agenda that was pushed much more heavily over the past five years. At the same time, climate change also came to the top of the agenda after the Paris Agreement.”

Anna Pinedo: “No—if these are areas that are interesting to women, then, absolutely not. There is a lot of opportunity in ESG, in sustainability, and there is the possibility to make a mark in a new area.”

What do investment banks and financial services companies need to do to attract female talent?

Isabelle Millat: “They need to promote women to leadership positions, so that incoming female talents have aspirational models. They need to reach out to young women in schools and universities deliberately and systematically and showcase testimonies of junior women they employ. They need to set and communicate on diversity targets, and to walk the talk with management-sponsored policies, to achieve these targets.”

Diana van Maasdijk: “I believe there are two main things companies can do to improve their gender balance. First, companies need to be transparent about where they are today on gender equality. What are the percentages of male and female employees at all corporate levels? What is their gender pay gap? What policies do they have in place, such as parental leave for both genders and flexible work, in place to promote a culture of equal opportunity and diversity? Second, the leadership of a company needs to put targets in place, at all corporate levels, to reach gender balance, meaning 40-60% of each gender in all teams.”

Armelle Loeb: “I don’t think the solution should be positive discrimination or a quota system because you want people to be promoted on merit.”

Maryline Mertz: “I mentioned already that measuring and tracking are very important for accountability. Engagement is very important. If you want to attract more women, you need to be very engaged: it takes more time, it takes effort, takes sponsorship, and also coaching. And finally, once you've attracted them it's very important you retain and develop their talent. Coming back to my initial point about Serena Williams, it's not just about giving women an award or a promotion or title. You need to have a plan to make them win Wimbledon.”

Would you like to highlight any resources designed to improve gender equality, in your own workplace or more widely?