Introduction
Britain’s financial sector continues to struggle with the recruitment of women into senior positions, according to a recent report from the UK finance ministry. The slow rate of change has been labeled "unacceptable" by Amanda Blanc, CEO of British insurer Aviva.Context
As financial institutions navigate commitments to diversity amid shifting political landscapes, the pace of progress appears to be stalling. Women occupied 36% of senior roles in finance last year, reflecting a modest increase from 35% in 2023 and 34% in 2022. This slow advancement has been linked to issues such as restructuring, low turnover at senior management levels, and hiring freezes, as reported by the HM Treasury Women in Finance Charter, compiled by the think tank New Financial.Developments
The charter, which has been signed by approximately 450 firms since its launch in 2016, aims to enhance female representation in leadership. Each participating firm establishes its own targets and timelines. However, 44% of firms with goals set for this year indicate they may not achieve these objectives without significant effort.Political factors also play a role; U.S. President Donald Trump’s opposition to diversity and inclusion initiatives has led some firms to reconsider their public commitments. For instance, Swiss bank UBS removed its diversity targets from its most recent annual report.
Moreover, a third of the 60 firms facing deadlines in 2024 have failed to meet their targets. Germany’s Commerzbank reported that only 20% of its leadership roles were filled by women as of July 2024, falling short of their 25% target due to hiring restrictions and a lack of available management positions. Natixis' London branch increased its proportion of senior female employees from 16.7% to 28.4% over the past five years, but has postponed its 30% target to September 2026.
The report also highlighted a shift towards hybrid working models, with 95% of signatories adopting this approach. This transition is seen as particularly beneficial for women with caregiving responsibilities, a significant increase from the 25% of signatories implementing such arrangements in 2019.