Is Finance Still a Male-Dominated Industry?

The finance industry often prompts examination of whether it remains predominantly male. This inquiry delves into the current distribution of women in finance roles, from entry-level positions to executive leadership. Understanding the historical context and variations across financial sub-sectors provides clarity.

Current Gender Landscape

The finance industry exhibits varied patterns of gender representation across levels and roles. In the United States, women constituted 52% of finance jobs in 2021, indicating a strong presence at entry points. However, this representation often diminishes significantly at higher career stages. Global data from 2023 indicates that women held only 18% of C-suite roles within the financial services industry. Projections suggest a slow increase, with women potentially reaching 25% of C-suite positions globally by 2031.

Corporate boards show a similar trend. In 2023, women accounted for 30% of board members worldwide. Within commercial banks, women held 19% of C-suite positions in 2023, and a notable number of these institutions reported no women in their top executive teams. Progress in senior management roles has been modest, with women holding an average of 35% of these positions in 2023, rising slightly to 36% in 2024 among firms committed to gender balance initiatives.

Despite some gains, gender parity in senior management is not expected until 2053 at the current rate of progress. This slower advancement at higher levels contrasts with the near gender parity observed in some entry-level roles, such as 48% of entry-level positions in private equity held by women at the end of 2022. The disparity between entry-level representation and senior leadership roles highlights a persistent challenge for women seeking career progression in finance.

Historical Trends

The presence of women in finance has evolved considerably from earlier periods, marked by societal and legal shifts. In the 18th century, pioneering women like Abigail Adams managed family investments, engaging in bond trading during the Revolutionary War, a time when such financial activities were uncommon for women. The 19th century saw the emergence of figures such as Maggie Lena Walker, who became the first woman to charter and serve as president of a bank in the United States in 1903. Victoria Woodhull and Tennessee Claflin also established the first female-owned brokerage firm in 1870.

The 20th century saw further, often temporary, increases in women’s participation, particularly during wartime. Women stepped into roles on Wall Street and in banks to fill vacancies left by men serving in World War I and World War II. While many of these roles were clerical, some women advanced to trading positions, demonstrating financial acumen. However, these gains were often reversed when men returned from conflict, with women frequently removed from their positions.

Legal and social reforms throughout the 20th century gradually expanded women’s financial rights. For example, it was not until 1975 that married women in the United Kingdom were legally permitted to open a bank account without their husbands’ permission. By the 1980s, major banks reported workforces with roughly 50% women, but a closer examination revealed that approximately 60% of these women occupied clerical and administrative roles, with only about 1.8% in managerial positions. This illustrates women gaining access and influence within a field previously inaccessible to them.

Differences Across Finance Sub-Sectors

Gender representation varies across finance sub-sectors. In private equity, women comprised about 22% of all investment professionals between 2021 and 2023. However, this proportion decreases substantially at senior levels, where women held only 6% of positions during the same period. Despite this, the number of women and minority-owned private equity and venture capital firms showed significant growth, reaching 907 in 2023, an increase from 760 in 2022.

The financial technology (FinTech) sector, a newer industry segment, demonstrates a gender gap. As of 2023, women constituted approximately 30% of the overall workforce in FinTech. Representation in senior and executive roles is lower, with women holding around 18.2% of executive committee positions in a 2021 sample of leading FinTech firms. Furthermore, only about 7.69% of FinTech co-founders were women in the same sample, and women-led FinTech companies face funding challenges, receiving only 2.4% of venture capital funding in 2024.

While specific data for investment banking is less available, historical accounts mention pioneering women like Muriel Siebert, who became the first woman to gain a seat on the New York Stock Exchange in 1967. In wealth and asset management, women hold top positions in some major U.S. financial institutions, yet remain underrepresented in senior management. These differences underscore that gender representation in finance is not uniform across all its areas.