Examining the Difference in Gender Diversity: Perspectives from Prominent Women in European Fintech.

 The data clearly shows how far we have to go in our continuous pursuit of gender parity and equality within the European fintech industry. During the first half of 2023, fintechs founded by women received only 2.2 % of venture capital investments in the UK. The percentage of female founders or co-founders in fintech companies in Europe is just 10.1%.

According to a study conducted by Innovate Finance, obstacles that impede the career advancement of notable female figures in the UK Fintech sector include inadequate industry recognition (27%) and unclear promotion procedures (25%).

We spoke to several successful female founders and prominent figures in European fintech to learn more about the current state of diversity in the industry and tactics for bringing about change.

Journeys into Fintech Leadership:

Women take distinct routes to become leaders in the fintech industry. covering everything from ventures from completely different industries to corporate finance roles and early involvement with fintech startups. For example, Egle Krolyte-Plentiene, CEO of the UK Branch, left her lawfirm to enter the fintech space after almost 10 years. Triin Hertmann, the founder of Grünfin, started out in finance before moving into technology. She was a founding team member at Skype, where she met Taavet Hinrikus, who would go on to co-found Transferwise (now Wise). Their divergent backgrounds notwithstanding, they have one thing in common: they are driven toward fintech by a shared commitment to innovation and improving the financial landscape.

Fintech Leader Motivations:

Every leader has a unique viewpoint on what drives them in their fintech adventure. Egle emphasizes that we have not yet fully experienced technology's transformative power, but finds inspiration in its potential to create a more inclusive financial future.  In an effort to balance monetary gain with environmental welfare, Triin uses her enthusiasm to promote sustainable investing at Grüfin.

These women, though from different backgrounds, have one goal in common: to use creativity and problem-solving in the fintech industry's constant evolution to bring about positive change.

Impact of Diversity Deficit in Fintech:

These leaders have differing perspectives on the diversity deficit in fintech. They all agree that gender has wider consequences even though some have not personally experienced bias or negative effects because of it, which emphasizes the need for coordinated efforts to improve equality. The problems of unconscious bias are made worse by a lack of diversity. Egle highlights that joining the fintech industry can seem intimidating and unwelcoming, which is why it's important to change the narrative.

Given gender differences in customer behaviour and product usage, these leaders argue that diversity deficits prevent FinTech from reaching its full potential. Starting and running a fintech business requires a significant financial commitment, which is made worse by strict regulations; fundraising obstacles and investor homogeneity aggravate the ongoing problems resulting from underfunded founders who are underrepresented.

Strategies for Change:

The women in leadership offer a variety of recommendations for attaining fairness in terms of representation and opportunities in the fintech industry. These include bringing men into the conversation and fostering the growth of young talent. 

Advice for Underrepresented Persons:

These female fintech titans have made it clear what needs to be done: use your unique perspective, build relationships, network, and embrace lifelong learning as the fintech industry continues to grow. Seek out groups that uplift and encourage you. You should also gravitate toward settings that value diversity and opportunity for personal development. In conclusion, those who are open to embracing the dynamism and diversity of the fintech industry will find a vibrant and close-knit community, especially in Europe.