As part of IFA Magazine’s celebration of today’s International Women’s Day campaign, Apex Group’s Lucia Perchard outlines not just why it’s important to boost gender equality in financial services but also some interesting – and groundbreaking – ways that this could be achieved in practice
The traditional image of the world of finance remains one of men in suits. And to a large extent, in many areas of the industry this image remains close to the truth. While the situation is improving and there are growing numbers of opportunities for women to succeed in financial services, there is still work to be done.
According to research from Deloitte, women in financial institutions globally held 21% of board seats, 19% of C-suite roles, and 5% of CEO positions in 2021. This represents significant progress but indicates that men still have a much greater chance of attaining leadership positions in finance than women.
Gender pay-gap reporting, targeted recruitment and ESG requirements are all helping to close these gaps. And many businesses now have proactive schemes and policies aimed at ensuring gender equity in finance. This is one area where Apex Group has led the way with the launch of a Women’s Accelerator program – now in its second year – designed to drive female progression and diversity at all levels within the Group. The Women’s Accelerator Program is designed to accelerate the progress of high-performing female talent through the business, mending the “broken rungs” on the career ladder, eroding the gender disparity at mid- and senior-management levels and provide a clear path for career progression.
51 women took part in the first year of the program, with over half subsequently securing promotions, progression or new roles. Over 300 nominations and applications were received for the 2023 edition of the program, with 93 women from over 25 Apex Group offices being accepted on to the program. We are extremely proud of the immediate and noticeable impact the program has had not just in the measurable impact on progressions for the members of the 2022 cohort, but also in terms of the strong community we have built around the programme. One of my colleagues, Alice Read, has described how the program gave her the confidence to put herself forward for the role of Country Head, Jersey, and is now responsible for an office of 400 people.
The popularity of the 2023 program is no surprise given the visible difference the 2022 program had for its members – there is an energy and excitement about the program which has given women across our business the confidence and a hunger to be part of driving positive change.
Family Offices leading the way
One area of finance which seems to be ahead of the curve and is demonstrating the growth and progress that can be unlocked by more equitable distribution of opportunities, is in the Family Office space. While only 5% of CEO positions in finance at large are held by women, research from Family Office Exchange and Grant Thornton in the US, suggests that 35% of CEOs in the family office sector are female. The reasons for this are complicated, with the research suggesting that daughters are being offered greater opportunities than previous generations to involve themselves with managing family wealth.
Research from KPMG also suggests that family offices value prudent, long-term approaches to investment and the emotional intelligence required to navigate family politics, skills which may well be absent from the wider finance sector with its machismo image.
And with an emerging “matriarchy” heading up family wealth, they are seeking partners and service providers who reflect their own values and approach. I’ve heard several times of female clients – often, but not always in the Middle East – who are the financial decision makers but are often overlooked in meetings by male advisers.
A new approach to finance
So, what might a future wealth management sector with greater levels of female leadership look like? Well, by looking at the family office sector, we may be able to get some clues.
One thing that is clear is that the Family Office sector is growing. With high-net worth individuals and families more cautious about the wider finance and investment sector, and volatile markets, growing numbers are opting for the careful stewardship which a Family Office offers. As such, the sector is expected to grow by around 6% over the coming years. Likewise the value of assets under management in the family office sector has seen growth averaging 8% since 2016, outperforming the wider economy.
So, is the prudence and sustainable growth we see in the family office sector a result of families being more careful when investing their own wealth, or the result of a longer-term and more risk averse approach to investing that might be enhanced by greater levels of female leadership?
The answer is probably but, the wider financial sector should take note.
The last financial crash was, in part, due to some investors taking risks with other people’s money that they might not have taken with their own. The success of the family office sector shows what can be achieved when investment decisions are decoupled from the testosterone-fueled bravado which has traditionally been part of the financial sectors ‘city-boy’ image. Nearly a fifth of the world’s
entrepreneurs are now women and are in an exciting position to create opportunities for other women – to “pay it forward.”
As female leadership continues to grow in the financial sector, we may see some of the successes we have seen in the family office sector replicated in other areas of finance too. This would be good news not just for women in finance, but for the investment community and the economy as a whole.
