Celebrating the progress of women in finance

When Women’s Month rolls around, we usually bemoan the lack of progress in gender equality in the economy, finance and leadership positions in general. Yet we underappreciate the progress that has already been made and underestimate the significant impact even incremental changes have on team dynamics.

Women play crucial roles in the economy – both as consumers and as caregivers – with this having a notable influence on public policies, such as social welfare, and on education – think about the corporate initiative of ‘Take a Girl Child To Work Day’. A greater role in the economy, in part due to rising female participation in the labour force and greater financial independence, means women are increasingly taking responsibility for their own financial futures as investors.

We acknowledge that women’s wealth creation still lags that of men, as recently highlighted by the World Economic Forum1. This is in large part due to a growing wealth gap as women age, which in turn is a function of lower labour market participation – usually temporary – associated with having to split their attention between work and motherhood. For more on this, read up on Claudia Goldin’s work on women in the labour market, which won her the Nobel prize for economics in 2023. Platforms such as this publication have over the years educated us on the growing impact of women in the asset management industry, with rising demand for female-led investment teams and lead managers. Yes, there is still a long way to go to achieve perfect equality, but that does not mean we should not celebrate our shared successes.

A 2021 study of women leaders in financial services by Deloitte2 highlights that only 19% of C-suite roles worldwide are held by women. At 18.6%, this puts South Africa on par. When we delve deeper, we see that women account for 31.6% of senior leadership positions in SA financial services, above the US (21%), UK (21.8%), China (17.4%) and Brazil (13.7%). Importantly, the female share of managers in financial services that will be the next generation of leaders in South Africa is 42.1%, eclipsed only by Singapore. This highlights the progress we have made and the work that needs to continue to expand the inclusion of women in our industry.

In line with Terebinth Capital’s founding principles 11 years ago, research increasingly shows the benefits of recognising and harnessing the unique perspectives and qualities that women bring to the table. Their adeptness in communication, emotional intelligence, and strategic thinking, coupled with a penchant for collaboration and relationship-building, have become pivotal assets driving innovation and success in the financial landscape.

Yet the journey of women in finance is not merely one of inclusion, it is also one of empowerment. Skills transfer, a fundamental aspect of their presence, manifests itself in the exchange of knowledge, expertise and experience that enriches the collective tapestry of financial institutions.

The ripple effects of women’s involvement in finance are far-reaching, extending into the realms of mentorship, leadership and innovation. Women in finance can inspire future generations, shattering glass ceilings and redefining the norms of the industry. Their presence not only amplifies the voice of diversity but also sets a precedent for a more equitable and progressive financial landscape.

1 World Economic Forum, Financial and Monetary Systems, Women are poised to reshape financial markets —as investors and financial decision-makers, 7 June 2024 1 Deloitte Insights, Advancing more women leaders in financial services: A global report, 2022