“Mind the gap” is a familiar warning on train platforms – and it’s also an apt phrase for the gaps we still see between men and women in the finance industry. Despite progress, a gender gap in pay and leadership persists in finance, both in Australia and globally. However, this isn’t just a women’s issue; closing these gaps stands to benefit everyone – companies, economies, and society at large. In this post, we take an optimistic, fact-driven look at the current state of gender equality in finance. We’ll examine the pay and leadership disparities, explore why greater equality yields better outcomes for all, and highlight positive changes underway that give hope the gap is finally narrowing. No financial advice here – just insights and data on why equality in finance matters and how the trend is moving in the right direction.

The Gender Gaps in Finance: By the Numbers

First, let’s quantify the gaps we’re talking about. Two of the most discussed metrics are the gender pay gap and the representation gap in leadership. Unfortunately, the finance sector has one of the widest pay gaps of any industry in Australia. According to the Workplace Gender Equality Agency (WGEA), the average woman in financial and insurance services earns only about 74 cents for every dollar earned by a man, translating to a pay gap of roughly 26% in favour of men . In practical terms, that means a female finance professional’s annual earnings can be tens of thousands of dollars lower than her male counterpart’s, even accounting for factors like role and experience. This gap is larger than the national average gender pay gap (which hovers around 14%–20% depending on measurement) and makes finance one of the “worst offenders” on pay inequality . The pay gap encompasses base salary as well as bonuses and other remuneration. One reason it’s so large in finance is the high bonuses and profit-sharing common in the industry – if women are not reaching the top bonus-earning roles, or if biases affect performance pay, the difference adds up. Recent WGEA data did show a slight improvement: the overall gender pay gap in Australia’s private sector edged down from about 19% to 18.6% in the latest year reported . And 56% of employers in all industries reduced their gaps year-on-year . So there is gradual progress on the pay front, but finance remains a standout area where the gap is still particularly wide.

Now, onto leadership representation. We know women are about half of finance sector employees, but how many occupy the corner offices? The answer: still too few. As of 2024, women hold only around 13% of CEO positions in the financial services industry and 28% of key executive roles (like heads of business units) in Australia . Looking at senior management more broadly (executives and general managers in finance), women are roughly one-third of those roles . This means men outnumber women about 2:1 at the senior leadership level, even though entry-level intake is roughly equal. In the top echelons of corporate finance – boardrooms and C-suites – the gap is slowly closing but still evident. Women comprise about 36% of ASX 200 board directors now , a big improvement from a decade ago when it was under 10%. But among the largest companies, female CEOs are still rare (roughly 5-10% of ASX 200 CEOs, fluctuating yearly). As noted earlier, only 23 of the ASX 100 firms had a female CFO, illustrating the challenge in reaching the very top finance jobs .

Another gap worth mentioning is in promotion and retention rates. Research has revealed a “leaky pipeline” in finance: many women enter, but higher proportions drop out or stall in mid-career compared to men. For example, a Credit Suisse study found women globally make up 24% of senior roles in finance, even though they enter at near parity . This suggests barriers like lack of advancement opportunities, inflexible workplaces, or mid-career breaks (often for caregiving) disproportionately affecting women. These structural issues contribute to both the leadership gap and the pay gap (since fewer women in high positions means lower average pay).

In summary, the key gaps are: women earn less and are less likely to be in charge in finance. The numbers are improving very slowly, but they highlight persistent inequality. Now, why should everyone care about fixing this? Let’s explore the benefits.

Why Closing the Gap Benefits Everyone

It might be intuitive that gender equality is “the right thing to do” from a fairness perspective. But beyond fairness, there is a compelling practical case: everyone stands to gain from a more equal finance industry. Here are several reasons backed by research and data:

Stronger Economic Growth: When women’s skills are fully utilized in the economy, productivity rises. Studies have quantified enormous macroeconomic benefits. For instance, Australia’s government Office for Women noted that closing the gap in workforce participation and leadership between men and women could boost Australia’s GDP by about 11% . That’s because more women in high-paying, high-productivity finance roles means more innovation and output. On a global scale, the IMF estimated that eliminating gender gaps could increase global GDP by 35% . In short, empowering women to contribute equally isn’t a zero-sum— it grows the pie, creating more prosperity. This benefits men and women, businesses and employees alike through a stronger economy.
Better Company Performance: There is a robust business case that diverse leadership teams make better decisions, driving better financial performance. We referenced a McKinsey study earlier that found companies with more women in management were significantly more likely to outperform financially . Closer to home, research by the Bankwest Curtin Economics Centre and WGEA in Australia found clear links between female leadership and company profitability and productivity . One finding was that increasing the share of women in leadership roles actually causes improved performance metrics, such as market value and gross profitability, in a causal sense . Another Australian analysis of superannuation (pension) funds showed funds with higher female representation in executive roles delivered higher returns to members on average . The logic is that diverse teams avoid groupthink and bring complementary perspectives – crucial in finance where assessing risk and spotting opportunity is key. Everyone who has a stake in a company – shareholders, employees with bonuses, customers – benefits when the company performs better. So diversity isn’t just “nice to have,” it’s a smart strategy for better results.
Innovation and Customer Insight: A more gender-equal workforce brings diverse ideas that can spur innovation. In finance, this might mean new products or services that cater to under-served markets. For example, the rise of microfinance and certain fintech solutions targeting women entrepreneurs globally came from recognising a gap that male-dominated institutions had overlooked. Gender-diverse teams are also more likely to question outdated assumptions. One Australian industry CEO put it simply: “Diversity really matters… it creates diverse thinking”, which leads to better innovation and problem-solving . Additionally, having women in decision-making roles can improve how financial institutions relate to their female clients (who are about half of all clients!). There have been cases where banks redesigned wealth management services or marketing approaches after realizing their all-male teams were missing what female customers prioritize. When customers are better served, businesses thrive and customer satisfaction rises.
Reduction in Talent Shortages: The finance sector, like many, competes for top talent. By fostering gender equality, the sector widens its talent pool and can alleviate skills shortages. If women feel finance is a hostile or dead-end environment, many potential stars may opt out or leave for other industries. Conversely, an inclusive culture attracts talented women and men who value diversity. Younger generations, both male and female, often look for employers with good diversity records. Thus, closing the gender gap helps finance firms attract and retain the best people, which in turn benefits colleagues (who get to work in well-staffed teams) and clients (who get better service from high-caliber staff). It’s telling that firms known for progressive policies often report lower turnover and higher employee engagement.
Fairness and Social Well-being: It’s worth noting the broader societal benefits. When women in finance are paid equitably and rise to senior positions, it helps narrow the overall gender pay gap in society and promotes more egalitarian households. More women with high incomes can invest in communities, support education for their children, and contribute to philanthropy. Also, with more women in leadership, issues that disproportionately affect women (like parental leave, childcare, flexible work) tend to get more attention and better solutions in workplaces – which actually benefits everyone (e.g., fathers also get paternity leave, employees of all genders enjoy flexibility). In societies with smaller gender gaps, research shows there are lower rates of poverty and better health and education outcomes. So while this might sound lofty, gender equality in sectors like finance contributes to a healthier, more equitable society for all.

To sum up, closing the gender gaps is not a women vs. men scenario; it’s a win-win. As one report stated, “Closing the gender pay gap is important for Australia’s economic future and reflects our aspiration to be an equal and fair society for all.” Better decisions, stronger growth, more innovation, happier employees, and a more just society – those are outcomes that benefit everyone, not just women.

Signs of Progress: Closing the GENDER Gap Bit by Bit

Amidst the challenges, there are positive trends and efforts indicating that the tide is (slowly) turning. It’s important to highlight these to keep an optimistic outlook. Here are some encouraging developments in gender equality in finance:

1. Increasing Transparency and Accountability: Australia has implemented measures to shine a light on gender disparities. WGEA’s reporting requirements mean large companies must submit data on gender composition and pay. Starting in 2024, the government will even allow public disclosure of company-level gender pay gaps . This transparency creates a reputational incentive for firms to improve. Indeed, many financial institutions have set public targets (e.g., “40% of leadership roles to be held by women by 2025”) and report progress annually. It’s the old adage: what gets measured, gets managed. The fact that 72% of reporting employers still have pay gaps favoring men shows the work left to do, but the majority are now actively trying to reduce those gaps each year.

2. Women Gaining Ground in Management: While the CEO numbers remain low, women are moving up at other levels. WGEA noted that women are being promoted to management at a slightly higher rate than men in recent years – meaning the pipeline is slowly filling with more female managers . If this continues, it promises more equal representation in upper management in the future. Also, younger cohorts show promise: in many financial graduate programs, women slightly outnumber men, indicating strong interest and entry. Retaining and nurturing this cohort is key, but the initial intake is there. Moreover, the stigma around flexible work and career breaks (which often affected women) is starting to fade. Post-pandemic, flexible working arrangements have become mainstream in finance, which can particularly help women (and men) balance family without derailing careers. A cultural shift among big banks and firms to normalise paternity leave and flexible schedules is making it more feasible for women to stay and advance even if they have children – helping plug that “leaky pipeline.”

3. Leadership Firsts and Role Models: Symbolic milestones matter. We’ve seen some historic “first female” appointments in the past few years, showing that barriers are being broken. Michele Bullock as RBA Governor in 2023 is a prime example . Also, several major Australian financial institutions have (or recently had) women CEOs or Chairs – examples include Macquarie Group (CEO Shemara Wikramanayake), the ASX (CEO Helen Lofthouse), AMP (former CEO Alexis George), and one of the Big Four banks had a female CEO a few years back (Gail Kelly at Westpac). Each of these high-profile leaders chips away at biases and inspires change. Within companies, when a woman takes the helm and performs well, it often has a trickle-down effect of motivating the promotion of more women and instituting supportive policies. There’s evidence in some organisations that once one woman is on the executive team, it becomes easier to appoint the second and third, as the culture shifts to be more inclusive. Additionally, we now have numerous women-led finance initiatives – like funds focused on investing in female-led businesses, or networking forums (Financy, Women in FinTech, etc.). These create positive momentum and community around women’s success.

4. Pay Gap Narrowing (Slowly) and Policy Changes: Encouragingly, the gender pay gap in finance, while still high, has seen slight improvements. Some firms report year-on-year shrinkage of their internal gaps after conducting pay equity reviews and adjustments. For instance, a recent WGEA report noted the median employer gender pay gap in financial and insurance services is around 22%, down a bit from prior years (and the average gap is ~26%) . The median being lower suggests more companies are moving towards parity even if a few skew the average. On the policy front, there have been supportive changes such as legislation on equal pay and expanding paid parental leave. Australia’s legislation has technically required equal pay for equal work for decades, but attention is now on systemic gaps (like women being clustered in lower-paying areas). Government and industry bodies have launched initiatives like the Women’s Economic Equality Taskforce and others, aiming to address issues like childcare affordability (since high childcare costs often push women out of full-time work). These efforts indicate that closing the finance gender gap is on the national agenda, not just a niche concern.

5. Men as Allies and Changing Attitudes: Finally, another positive sign is the rise of allyship. More male leaders in finance are publicly championing gender diversity, which helps change the norms. We see initiatives like the Male Champions of Change in the banking sector, where influential male CEOs commit to drive gender equality in their organisations. It’s increasingly recognised that this is not a “women’s issue” to solve alone – it requires everyone’s participation. Surveys of younger men in finance also show they value work-life balance and egalitarian workplaces, suggesting the next generation of male leaders may be more naturally inclined to support equality measures (like normalising parental leave for dads, which in turn helps moms). The conversation around workplace equality has broadened to include not just gender but also intersectionality (e.g., women of color in finance facing extra hurdles). While there’s a long way to go, the discourse is more sophisticated and inclusive than in the past.

Looking Ahead: An Optimistic Outlook

The gender gaps in finance – pay and leadership – were built over decades (even centuries) of historical inequality, and they won’t disappear overnight. However, the trajectory is positive. Every year we see incremental gains: a slightly smaller pay gap here, a few more women in executive roles there, another firm announcing aggressive diversity targets, another talented cohort of young women starting their finance careers. Importantly, we also see evidence that once gender equality reaches a tipping point, it can accelerate. For example, when a board hits 30-40% women, the conversation shifts from “the lone woman’s perspective” to “one of many voices,” and having a gender-balanced board becomes the new normal – as is nearly the case now with ~37% women directors on ASX 300 boards .

It’s not wishful thinking to imagine a finance sector in the near future where the CEO of a big four bank being female is not newsworthy, because it’s commonplace; where male and female analysts earn equal bonuses for equal performance, with no unexplained gaps; and where a young woman entering finance sees a clear path to leadership if she chooses, rather than an obstacle course. Each step being taken now is paving that path. The benefits we discussed – better business outcomes, economic gains, and societal well-being – provide strong motivation to keep pushing for change.

In practical terms, what can accelerate closing the gap? Experts often call for measures like normalising flexible work (so women and men can balance home responsibilities), tackling unconscious bias in promotions and hiring through training and diverse panels, and setting concrete diversity goals. Many Australian financial institutions have embraced these, and continued commitment will yield results. Regulatory nudges (like reporting requirements or even considering mandates for diversity in leadership) can also play a role. Some countries have quotas for women on boards, for instance, which rapidly boost representation. Australia hasn’t gone that route for corporate boards yet, but the progress via voluntary targets has been notable. For pay equity, companies doing annual salary audits and correcting disparities is becoming a standard practice – and something employees expect. As more firms do this, those who don’t will stand out (and not in a good way).

There’s also the human element: mentorship and sponsorship of women in finance can’t be underestimated (and it’s happening more). When senior leaders personally take it upon themselves to lift up junior women – offering advice, opportunities, and endorsements – it can fast-track closing the representation gap. We see a groundswell of senior women in finance reaching back to pull others up, and many enlightened male leaders doing the same. This cultural change within organisations, where talent is talent regardless of gender, is ultimately the heart of achieving equality.

In conclusion, minding the gap in finance is not just about fairness to women; it’s about creating a more robust, innovative, and prosperous financial system for all. The data is clear that equality is a win-win. While the gaps in pay and leadership are still real in 2025, they are narrowing, and there’s justified optimism that we will witness a more gender-equal finance industry in the coming years. Every stakeholder – from CEOs to new grads, from policymakers to clients – has a role to play in this journey. By continuing to measure progress, hold ourselves accountable, and celebrate the positive changes, we’ll ensure the momentum doesn’t stall. The destination is in sight: a finance sector where opportunity and reward are truly independent of gender. And when we get there, it will indeed benefit everyone.

References :

UNSW Online. (2024). Women in finance: Current and future perspectives. (Stats on finance workforce and leadership gaps)
WGEA. (2023). Australia’s Gender Pay Gap Statistics. (Financial and insurance services pay gap ~26%)
Equidi. (2025, Mar 26). Key Insights from WGEA’s Latest Employer Gender Pay Gap Report (2023–24). (National average 21.8%, median 18.6%, 56% employers improved)
WGEA Data Explorer. (2024). Industry pay gap – Financial and Insurance Services. (Median employer gap ~22%)
Reuters. (2023, July 14). Australia’s ASX appoints first female chief (Helen Lofthouse).
WGEA & Bankwest Curtin Economics Centre. (2020). Gender Equity Insights. (Women in leadership causally improve performance; +10% women on boards -> +~5% firm value)
Money Magazine / Rainmaker. (2021). Women-led super funds continue to outperform. (Female-led funds beat peers by ~0.4–0.6% p.a.)
Office for Women (Australian Govt). (2022). Closing the gender gap would boost GDP by 11%.
Forbes. (2018). IMF study: Closing gender gap could increase global GDP by 35%.
WGEA. (2024, May). Submission to ASX Corporate Governance Council. (Women on ASX200 boards from 8.3% in 2009 to 36.9% in 2024)
Workplace Gender Equality Agency. (2019). Women’s promotions and leadership pipeline. (Women’s management representation rising, but CEO parity ~80 years at current pace)
Australian Institute of Company Directors. (2023). Gender Diversity Progress Report. (ASX 200 boards ~36% women)
Reuters. (2023, July 14). Australia appoints first female head for RBA (Michele Bullock).
Financy. (2023). Women’s Index Report. (Tracks improvements in women’s economic indicators, e.g. workforce participation, super gap narrowing)