This guide outlines why women finance careerists can often show better results than men do in the same field.
The financial industry has always been traditionally male-dominated. It also is one of the most lucrative sectors on earth amid the international character and high demand for financial services all around the world, including some of the poorest areas globally. From the very beginning of civilization, the exchange of goods and services has been dealt with primarily by males. But has it been beneficial? What is the problem with a male-dominated financial industry? Why do we need more women and minorities in the financial sector to foster the sustainable development of the industry?
Women finance careers: overview
Different countries have various structures of the economy and thus form different types of GDP, socioeconomic environments, and demographic structures. The cultural backgrounds of nations are also vastly different. Some are much more conservative and homogeneous whilst others are extremely diverse, tolerant, progressive, and accepting. Whatever the reason for these differences is, the fact remains the same – the involvement of women, minorities, and various social groups in male-dominated sectors remain at a bare minimum. Women are rarely represented in major companies in high-profile positions such as CEOs, CTOs, and others.
The trend has been positive over the past few years as more and more women finance careerists hold certain positions in big companies and innovative startups. For instance, the number of women CEOs among the fortune 500 companies has skyrocketed, reaching 33 in 2019. This is a historical number for the fortune 500 lists, however, when putting in perspective, it is still very low. It is approximately 1 in 15 CEOs. but what would the benefits of having more women in the financial sector be? Or are there any benefits at all? The reality is that women can bring lots of success to themselves and the entire industry if more involved in high-profile positions.
Women finance careers and risk management
The numerous researches suggest that more women among the staff of any company bring enormous stability and better risk management to the company. The research conducted by Mercer suggests that involving more women finance careerists in banking or finance, in general, banks take less risk, leading to desirable financial outcomes for the entire company.
Psychological researches have shown that women finance careerists are more likely to take well-considered and cautious financial decisions than men. They are much more careful with the risks and take them only so often. Therefore, for the company that is experiencing financial difficulties or is riding on the thin ice, having women in leadership positions might lead to succeeding throughout the turbulent times.
Women make better investors and are better for external investments as well
This will shock many readers but turns out, that women finance careerists make much better investors than men do. This characteristic of most women is mainly attributed to the previous point about risk management. Women are much less likely to take major risks and invest in potentially high-risk and unprofitable business ventures or assets. Moreover, surprisingly, numerous physiological researches have found, that women tend to make decisions based on a thorough evaluation of factors rather than based on emotional feelings. It turns out, that men are more likely to make decisions based solely on emotional factors.
Women ensure more sustainable companies and eco-conscious decisions
We live in an era of climate change and a variety of global problems that concern all of us equally. Researches have found that women finance careerists are more environmentally conscious than men. This can be extremely important for any modern company, in the era, when societies are more alert about climate action than ever before. Good and conscious decisions can even lead to financial gains for the entire business.
