Women Leading the Charge in Fintech Innovation Globally

A new generation of women leaders is emerging, driving innovation and shaping the industry's future and these trailblazers are not only breaking down barriers but also redefining what it means to be a successful leader in the fintech space. From pioneering new technologies to championing diversity and inclusion, these women are making their mark on the industry and inspiring others to follow in their footsteps.

Celebrating the 2024 Top 40 Women Leaders Under 40

The Digital Impact Awards recently unveiled its 2024 Top 40 Women Leaders Under 40 list, recognizing the exceptional contributions of young women in the fintech industry. Selected through a People's Choice process, these 40 women represent the pinnacle of innovation, executive leadership, entrepreneurship, and business acumen. Hailing from diverse backgrounds and regions, they have been directly nominated by those whose lives and careers they have significantly impacted, a testament to their transformative influence.

Starting January 30th, 2024, the Digital Impact Awards embarked on a journey to showcase one exceptional woman leader each day individually, culminating in the highly anticipated "HiPipo Women in FinTech Magazine" publication on International Women's Day, March 8th. This prestigious acknowledgement serves as a lifelong accolade, empowering recipients to showcase their achievements in their professional biographies and across various social communication platforms.

Addressing Gender Gaps in Fintech Leadership

While the fintech industry has made strides in diversity and inclusion, there is still work to be done to achieve true gender parity. A recent study by the International Monetary Fund (IMF) found that women represent less than 10% of leadership positions in fintech firms, both as founders and executive board members. This figure is even lower than in the traditional banking industry and technology companies.

However, the study also revealed a positive relationship between having more women on executive boards and the revenue and funding earned by fintech firms. A 10% higher share of women on executive boards is associated with roughly 13% higher revenue and funding. This underscores the importance of diversity in driving innovation and success in the fintech sector.

Overcoming Challenges and Fostering Inclusion

While progress has been made, women in fintech still face significant challenges. One of the biggest hurdles is the underrepresentation in leadership positions, despite possessing the same skills and expertise as their male counterparts. Melanie Hayes, COO of KYND, emphasizes the need for concerted efforts to implement transparent promotion policies, mentorship programs, and leadership training initiatives to address this disparity.

Moreover, the lack of visibility and recognition for women in fintech perpetuates the gender gap. Combatting this requires elevating the profiles of female professionals through platforms, awards, and media representation. By amplifying their voices and celebrating their achievements, we can inspire future generations of women to pursue careers in fintech.

Zaliia Gindullina, head of business development at WealthTech company Kidbrooke, suggests three key pathways to greater equality: helping young mothers return to work after childbirth, creating an encouraging environment for fathers to take parental leave, and developing events where men get to listen to female experts speaking. She also emphasizes the importance of organizations talking about the policies that work and addressing diversity and inclusion issues head-on.

The Business Case for Diversity in Fintech

Diversity and inclusion are not just social justice issues but also strategies for sustained success in the competitive fintech landscape. Research has continually proven that diversity benefits businesses, and capturing talent and embracing a wide set of skills is vital for innovation and growth.

Anna Porra, Head of Market Development and Planning at Soldo, emphasizes that inclusivity fosters innovation and creativity, which has been at the center of the positive disruption in financial services over the past decade. Prioritizing diversity not only advances individual careers but also bolsters overall economic growth by tapping into the full spectrum of talent.

Sarah Spoja, CFO at Tipalti, believes that creating a diverse workplace is also vital to attract and retain young talent. She notes that women made up just 16% of CFOs last year, and while this figure has almost doubled over the past ten years, the percentages of women at the top remain too low. To combat the lack of opportunities for female finance talent and inspire the next generation of leaders, organizations must create a more dynamic environment that embraces modernization through technology and continue to mentor emerging talent through programs that showcase opportunities for career growth across finance and accounting.

Bridging the Gender Gap in Financial Inclusion

While fintech has the potential to be a game-changer for women's financial inclusion and economic empowerment, the barriers to access and adoption of digital financial services (DFS) have been slow. A survey conducted by the International Finance Corporation (IFC) found that more than half of fintech firms report that women constitute less than 25% of their customers.

However, the survey also found that the majority of fintech firms consider women more loyal, less risky, and more or equally valuable compared to men as customers. Anushe Khan, a researcher at IFC, emphasizes that if women have more access to financial services, the gap around inclusion and access to financial services will be reduced. She believes that fintech firms have an unprecedented opportunity to enable this with their widespread distribution and the ability for women to access services from the comfort of their homes.

To effectively tap into the women's market, fintech firms require knowledge, research, financial support, and technical assistance. Ecosystem actors, including investors, multilateral institutions, and incubators, can accelerate fintech firms' progress towards strategically serving women. The IFC, with its more than 10 years of expertise in helping financial institutions serve women customers in emerging markets, can provide financing to fintech firms to intentionally and strategically target women customers and women SMEs.

Fostering a More Inclusive and Fair Credit System

The fintech industry has made significant strides in fostering a more inclusive and fair credit system for women. Emma Steeley, CEO at Aro, recalls that in the 1980s, it was commonplace for lenders to demand the signature or consent of a husband or male relative when a woman, married or single, applied for credit. However, the industry has come a long way since then, with fintech firms playing a crucial role in driving this change.

Steeley emphasizes that fintech has the power to transform the credit system by leveraging alternative data sources and AI-powered algorithms to assess creditworthiness. This approach can help overcome the traditional barriers that women face in accessing credit, such as lack of collateral or credit history. By using alternative data sources, such as mobile phone usage, utility payments, and social media activity, fintech firms can create a more inclusive and fair credit system that takes into account the unique circumstances and needs of women borrowers.

Summary

The women leading the charge in fintech innovation globally are not only breaking down barriers but also paving the way for a more inclusive and equitable future. From pioneering new technologies to championing diversity and inclusion, these trailblazers are redefining what it means to be a successful leader in the fintech space. As the industry continues to evolve, it is crucial that we support and empower these women leaders, ensuring that their voices are heard and their contributions are recognized. By fostering a more inclusive and diverse fintech ecosystem, we can unlock the full potential of women's talent and drive innovation that benefits everyone. Whether it's through mentorship programs, leadership training initiatives, or targeted support for women-led startups, there are many ways that we can support the growth and success of women in fintech. As we celebrate International Women's Day Sat, Mar 8, 2025, let us reflect on the progress that has been made and the work that still needs to be done. Let us honor the women who have paved the way before us and inspire the next generation of leaders to follow in their footsteps. Together, we can build a fintech industry that is truly inclusive, innovative, and transformative.