Throughout history, the financial sector has predominantly been shaped by male leadership. However, as time has progressed, the landscape has transformed, with an increasing number of women breaking barriers and stepping into influential roles. This shift not only brings diverse perspectives but also reshapes the industries for the better.
Ayla Majid, the first South Asian to lead the Association of Chartered Certified Accountants (ACCA) stands as a testament to this evolution. In her role as the President of ACCA and a leader in corporate governance, energy, decarbonisation, and finance, she illustrates how talent from our region is stepping into global leadership roles across corporate, academic, and public sectors.
Women’s progress in finance: A Global perspective
Throughout the world, women’s leadership role in finance has been increasing with them fostering innovation and showing resilience. Within the FTSE 350 companies, women now hold 43.4% of board positions. Yet, the financial sector still has a long way to go in achieving true inclusivity as their representation in executive roles has only seen a slight increase of 5% over the past three years.
According to ACCA’s Leading Inclusion: Simple Steps and Significant Leaps report, gender diversity in finance helps improve decision-making, strengthens governance, and leads to more sustainable business practices. Inclusive organisations have consistently outperformed others by bringing in diverse perspectives and innovative approaches.
Along with serving as the President of ACCA, Ms Majid has successfully held board positions including chairing boards across various industries - energy, banking, pharmaceuticals, and financial services.
Over the past 15 years, she has seen significant progress in enhancing diversity and inclusion in leadership, but much more remains to be done.
While women have come a long way, their participation in the Pakistani workforce has been consistently low with a labour force participation of approximately 22.74% as of 2023 significantly below the global average of 52.6%.
The disparity is further reflected in the corporate sector in 2023, where women held only 3% of CEO roles among listed companies on the Pakistan Stock Exchange which further emphasises on the persistent gender gap in executive roles and employment within the corporate landscape of Pakistan.
The economic imperative of financial inclusivity
When women lead, economies thrive; hence it is an economic imperative!! A financial times research highlights that an increase in women’s participation in the workforce helps to boost global GDP significantly while simultaneously helping in stronger risk management and innovation in the financial sector. How so?
Research by McKinsey indicates that companies with the highest proportion of women on executive committees earn 47% higher returns on equity than those with no women executives over a 10-year period, indicating that inclusiveness needs to be strengthened further.
Cultural normals and institutional challenges are one the major barrier women face which restrict stheir access to leadership roles and limits their operationally to excel in the financial sector. Regardless of progress being made, a pressing need for structured intervention is still important to promote and support the professional growth of women.
Skill development and mentorship opportunities along with introducing flexible policies such as remote work options and equal parental leave are crucial to support career advancement and support work life balance. It is also imperative for progress to be driven by creating spaces and platforms that enable women to connect, share and support each other, which leads to more inclusive workplace cultures.
Initiatives like ACCA’s Women in Finance provide mentorship, guidance, and advocacy to help women advance in their careers wherewomen have the opportunity to lead, innovate, and drive meaningful change.
The role of professional bodies in advancing inclusion
Professional bodies play a significant role in progressing financial inclusion by setting up industry standards and driving policy changes to create a more diverse culture. ACCA has successfully been at the forefront of this effort by promoting gender diversity within the profession where approximately 50% of our global membership comprises of women
Through research, advocacy, and collaboration with governments, businesses and regulators, ACCA continues to work to ensure that financial inclusion is not just a goal, but a measurable reality. As well as promoting and measuring inclusivity in finance, ACCA's Leading Inclusion report highlights the importance of data-driven approaches.
Research also indicates that teams perform better when organisations have a diverse leadership team, with a McKinsey study finding that companies with a high gender diversity rate outperform their peers by 25%. Therefore, such evidence based strategies and data driven insights will help to break systematic barriers which will lead to a financial sector where opportunity and talent are accessible to all.
Looking ahead: The path towards sustainable change
The journey to create a more inclusive financial sector is on going which requires unwavering support and commitment from policy makers, organisations and industry players to create environments where women can thrive
The future of finance now depends on the ability to accept and drive talent. Prioritising inclusivity and removing the barriers women face will help to create a profession which is more resilient and equitable which may ultimately reflect the world we live in – one that is enhanced by innovation and diverse perspectives.
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