A lack of diversity and underrepresentation of minorities are a battle that many industries are trying to combat. Within Fintech, it’s no different. Many of these obstacles are not unique to Fintech, and are rooted in century old notions or caused by a lack of outreach in minority communities.
The Hard Truth
- When it comes to the global Fintech founder community, women make up just 7% of the pool.
- With Fintech accounting for between 10%-15% of overall tech employment, African American executives and professionals in the fintech industry are lower than 2% and 5.3% respectively.
- Women-led startup companies receive only 10% of venture capital investment, and all-female teams receive less than 1% of UK venture funding
- We all knew there was a gender pay gap, but the wage gap for Black women, Latina women, LGBTQ+, and other marginalized groups in tech is even larger.
How Championing Diversity Adds Value
Teams having a diverse range of thinking and voices are proven to pay off through:
Increased Revenue:top quartile for ethnic diversity and gender diversity are over 20 percent more likely to have more above-average profitability than those in the bottom quartile.
Higher Innovation: With Fintech companies so heavily reliant on innovation, fostering viewpoints from individuals with all different backgrounds and experiences can lead to more innovative brainstorming sessions. These then lead to new ideas or solutions that can help a company set itself apart from its competitors.
More Desirable Workplace: On the other hand, having a more diverse team will lead to a richer work environment. Employees will feel more accepted as individuals if diverse thinking and views are encouraged, which ultimately leads to higher retention rates.
Actions to Welcome Diversity
It takes more than a mere diversity statement to improve the numbers on minority disparity gaps, it requires action. What can be done to help lay a more diverse foundation in Fintech:
- More Minority Role Models: Bold, transparent leadership of minorities who are currently in Fintech roles is important. Through marketing representation, keynote speakers at conferences, and acknowledgement within companies themselves.
- Appropriate Support Systems: Make the work climate more welcoming for minorities who want to get their foot in the door in Fintech.
- Access to Education: Be proactive and bring tech experience into the education system earlier to excite youth about the future of Fintech. Introduce more Fintech focused programs for female professionals to access.
As Fintech recruiters, we often get asked to help firms increase their diversity and equality in the workplace. If you need help harvesting a diverse environment, feel free to reach out to us at finitisearch.com/client