Language
Have you ever had a discussion about the quota for women? I do. My first in politics class while still at school. With unwavering self-confidence back then - and looking back with a large dose of naivety - I was against a quota. Why shouldn't I also get hold of such a good position? For me, it wasn't a question of gender, but a question of performance. Over time, my attitude has changed.
The basic tenet that girls are preferred in school still exists. In professional life, the reality is definitely different, as gender gaps sufficiently explain.1 A former colleague once said so beautifully: “Hans Hanschen is moving there.” And no wonder, because this is even scientifically justified: When it comes to hiring and promoting, we prefer people who are similar to us. This bias is also known as the Mini-Me effect.2 Now you'd think that Marie would at least simply pull Mariechen. But there are simply too few Maries compared to Hans. Because, as research shows, women usually have too few “alpha members,” i.e. women in management positions who can move other network members up.3 Or they are also competing with each other as few women. When the question now arises as to whether Mariechen's name comes up during the promotion or Hänschen is suggested by Hans, the answer is clear with regard to the gender distribution at board and management levels.
This is also the case in the financial sector. Although, when looking at the workforce as a whole, the gender ratio is balanced, only 5.1% of German banking boards are women.4 The proportion of women across management levels is as much as 25%.4 It is hardly surprising that gender gaps (e.g. pay gap, employment cap, time cap) can be found here as in other industries. The special feature? The resulting financial service gender gap.7 Due to a lack of diversity — and we are just talking about gender disparity and not yet about other attributes — especially at decision-making level, men develop and market financial products and services for men. Women's needs are only insufficiently addressed. This ultimately means that women do not feel addressed by the offers and sometimes do not take advantage of them. This in turn reinforces other financial gaps such as the gender investment gap, wealth gap or pension gap. Translated into figures, these gaps mean that fewer women invest their money on the capital market at all. Invest, then 29%5 less money than men. German women own 24%6 They have less wealth and at retirement age they even have 49%7 less money available than men. These differences must be addressed. After all, equality also requires economic and financial equality. To do this, the financial sector must close its own gender gaps — through equal pay and more women in management positions — as well as address the gaps of its customers, precisely through financial products and services that address the needs of women.
But is it enough if we simply get a few more women into decision-making levels?
Like US YouTuber Lilly Singh in her TED Talk8 explained: Women are conditioned to want to get a “seat at the table.” But a seat at the management table alone is not enough to make a difference. Because the rules of the game are usually still the same there. So why can't we just build better tables? Where you feel good and are listened to? The comedian has formulated a simple Ikea manual for her TED talk. We should use that!
At these better tables, decisions can then ultimately be made that benefit all target groups. Because we make finances more diverse.
Now the question is: Do women really need other financial products? Do different target groups need different financial offers?
The answer is “Yes.” Not every product needs to be rethought; addressing, processing of information and product introduction also play a decisive role. Overall, we must include more needs, goals and realities of life in product development and marketing. Because customers everywhere are looking for individuality, for offers that suit them. And if one thing is individual, it is finances.
That's why we at Moneten want to build better tables — both for gender parity and diversity in the financial sector as well as for more individual, needs-oriented financial products and services!
*In this article, the term woman (s) includes all people read by women.
sources:
1. Federal Agency for Civic Education (2021): Educational inequalities between the sexes.
2. Voss, E. (2014): Unconscious Bias in Recruiting — How to avoid the stereotype trap, especially in personnel processes
3. Zeit Online (2017): Clues for your career
4. Sparkassen Innovation Hub (2021): Female Finance — Women in the Financial World. Gender gaps and unrecognized needs
5. N26 (o.J.): Women and Investing: Closing the Gender Gap
6th WTW & WEF (2022): 2022 Global Gender Wealth Equity Report
7. WSI (2019): Gender pension gap for own pension benefits 1992-2019
8th Ted Talk (2021): Lily Singh — “A Seat at the Table” Isn't the Solution for Gender Equity
