Farnoush Farsiar: Why are so few women in finance?

Women are breaking through barriers and becoming powerful leaders in many industries. However, there are still a few women working in finance. Sadly still, it may not see a significant change in the near future.

Deloitte insights states that by 2030 only 31 percent of the workforce will be female employees in the financial sector. The question is what is the reason there aren't more women working in the finance industry? While there are several theories, we wanted hear the opinions of an expert. Farnoush Farnoush is a passionate financial professional who is a champion for women's empowerment.

How many women are employed in Finance?

In the U.S., 57% are female, yet they hold only 24% of the financial positions. It is expected that this figure will increase to 28% in the next ten-years, from 24% in 2021. But it still falls way short of parity.

It's not only a problem facing women. It's also a problem for the economy, according to Farnoush Farsiar. "Diverse leaders have better results than those that don't have as broad a range of viewpoints," Farsiar said.  Farnoush Farsiar "So it's not just vital that women are represented in these fields, but it is also essential for the nation as a overall."

There are many reasons women aren't represented in the financial industry.  Farnoush Farsiar One theory suggests that the market for financial services is too competitive and male-dominated for women to break into.  Farnoush Farsiar Another theory suggests that parents and peers do not encourage women to pursue finance careers.

Farsiar believes that the root of the issue lies in the way women are viewed at a young age. "Women are taught from an early age to be take care of others, not risk takers. "We're taught not to make risks, but rather to be safe.  Farnoush Farsiar This doesn't help being a successful career financially.

It's more than just being taught to look after their children. Women are also taught to be kind to people. "Women are taught to be polite and minimize conflict," Farsiar adds. "But you have to be able to advocate for your own ideas in finance. You must be able to and willing to stand up for yourself.

Farnoush Farsiar Farsiar - Where are all of the women working in the accounting and finance fields?
The lack of women in finance is particularly apparent at the top of the industry. According to a survey conducted in 2016 and 2017 by Pew Women hold just 10% of executive posts. Only 11.5% of boards of financial firms are headed by women.

This disparity has real-world consequences for women in finance. Women are less likely to be promoted than their male counterparts will be promoted and they're also more likely to leave the field.

It is good to know that there's an increasing number of women in high-level roles. Farnoush Farsiar believes this partly because of the #womenshould campaign that has raised awareness about the dearth of diversity. Farsiar claims that she is convinced that the #MeToo campaign also has had a significant impact. Women are starting to speak up and demand change.

Women who pursue finance face obstacles
There are numerous hurdles women have to overcome in order to get into financial services. One of the largest barriers is the absence of role models. This can make it difficult for women who work in finance to be the only females within their departments.

Farsiar said that it's a bit daunting to be the only female in the room. "It feels like you have to be flawless every single day and you should not commit any mistakes."

Another obstacle is "old boys' club", a mentality that persists in many finance firms. This refers to the notion that men favor women over other men while women are not.

Farsiar acknowledges "there is plenty of truth in this." "I've seen this happening firsthand. Men will encourage other men, even when they are better equipped.

This old boys club mentality can also lead to sexual discrimination or harassment. Finance women are usually subject to unwelcome advances and humiliating remarks from their male counterparts.

Farnoush Farsiar declares "It's certainly an issue." "Women in finance are often treated as objects and it can be very difficult to make it in the financial world in a world where you're treated as a commodity."

The inability to work flexible schedules is another obstacle.  Farnoush Farsiar Family obligations are more frequent for women than men. They require flexible working arrangements to balance their family and work schedules.

"Finance is a very challenging sector. It can be difficult to manage these demands with other obligations. Women are often forced to choose between their work or family.

These barriers make achieving high-level positions in the financial services industry extremely difficult for females. There are numerous initiatives to tackle this issue.

Farnoush Farsiar believes that the future is bright for women in finance
There is every reason to be hopeful about the future of women working in finance. There are numerous initiatives aiming to boost the numbers of of females working in the financial sector and help them achieve senior positions.

Women Entrepreneurs Finance Initiative(We-Fi) is one of these initiatives. It's a collaboration between World Bank Group and 14 countries. We-Fi provides financing and assistance for women-led enterprises in developing countries.

"This is a great initiative as it provides women with access to the tools they need to start and grow their business," Farsiar said. It also helps them to create networks and connect with other successful women.

The Women in Finance Charter, introduced by the U.K. in 2016, is an additional initiative. The Women in Finance Charter is a pledge by financial companies to promote gender diversity.

"The Women in Finance Charter is a great step forward," Farsiar encourages. "It encourages financial firms to make changes to improve gender diversity, it's making progress."

Women are more likely to be promoted and get the chance to work in senior financial positions due to initiatives such as We-Fi. This is good news for women as well as the financial industry.