Gender Bias in the Financial Industry: A Persistent Issue

The Treasury select committee recently convened a roundtable discussion with 40 women representing 30 financial services firms, revealing that gender bias and “misogynistic mindsets” continue to be prevalent issues in the industry. Despite some progress in improving the workplace culture for women, the persistence of sexist attitudes and behaviors remains a significant concern.

As outlined in the committee’s summary, women in the financial services sector have noted a decrease in overt forms of sexism, such as workplace banter. However, they have observed that certain behaviors have become more subtle and insidious, making it challenging to address and combat. Despite societal changes brought about by the #MeToo movement, sexual harassment continues to be commonplace in the industry, with many women reporting firsthand experiences or witnessing occurrences involving their colleagues.

A key issue highlighted during the discussion was the persistence of a drinking culture in certain parts of the industry. Non-drinkers often feel pressured to attend such events in order to “fit in”, and these gatherings have been identified as environments where the most egregious behaviors towards women take place. Additionally, male colleagues who witness inappropriate behavior towards their female counterparts are often reluctant to intervene or call out the misconduct, perpetuating a culture that prioritizes protecting the firm over supporting the victim.

The role of Human Resources (HR) departments in addressing sexual harassment cases was also scrutinized during the discussion. Attendees expressed dissatisfaction with the perceived ineffectiveness of HR in handling such cases, with many believing that the primary objective of HR is to shield the firm rather than provide support to the victim. The negative experiences reported by women who have filed complaints or known someone who has done so further indicate the systemic issues that need to be addressed.

In response to the critical concerns raised during the discussion, the committee initiated an inquiry into “sexism in the city” last July, with a specific focus on the barriers faced by women in the financial services sector. Furthermore, the Financial Conduct Authority and the Prudential Regulation Authority have opened a joint consultation to explore how diversity and inclusion can enhance outcomes for markets and consumers. The regulators are currently reviewing the responses received and are expected to publish a policy paper based on their findings later this year.

The findings from the Treasury select committee’s discussion shed light on the persistent challenges faced by women in the financial services industry. It is crucial for the industry to address the systemic issues of gender bias and sexual harassment in order to create a more inclusive and equitable workplace for all professionals. Initiatives aimed at promoting diversity and inclusion, along with robust measures to combat misogyny and sexism, are imperative for fostering a culture of respect and equality within the financial services sector.