An uphill battle for gender parity in financial leadership

THE business case for diversity in leadership in financial institutions has been well-documented: diverse leadership improves financial outcomes, reduces groupthink and is a better reflection of the society the institutions serve. However, translating this understanding into meaningful action is easier said than done.

OMFIF’s 2024 Gender Balance Index (GBI) revealed a concerning pattern of missed opportunities. Of the 63 institutions with leadership transitions in 2023, only nine appointed women to top positions. While qualifications and merit are crucial considerations in these cases, the share of women in leadership – 14 per cent – was the same as the share in the previous year, highlighting the glacial pace of change.

Building the pipeline

Throughout 2024, OMFIF events consistently emphasised the need to develop the talent pipeline in order to increase representation of female leaders. The rationale for this is straightforward: cultivating talent at lower levels creates a robust pool of qualified women candidates when leadership positions become available.