Federal Reserve Bank of Cleveland’s Post

The financial industry pays women less than men. The discrepancies are large (25% to 50+%) and not reducing. What are the causes? - Banks say that women hold lower rank responsibilities, which combine with the heavily skewed compensation structure to explain the lower average compensations. - This article also mentions the child gap: women who had children lose in progression and compensation in the following years. But academics point to a different explanation. There is a statistically significant correlation between women at senior position and fraud. Simply said, more women at senior positions means less fraud. See for instance: - https://lnkd.in/e65Gk2mV - https://lnkd.in/eRHfZUjg - https://lnkd.in/eVyc8yGV - https://lnkd.in/eZ8BhCTd - https://lnkd.in/eQPARBvM So, why are banks not making any progress with women compensation and promotion again? Would this factor also explain why some prominent actors in our society are so opposed to DEI? Just ask'n. #FinancialCrime #Prevention #Regulation #Enforcement #FinancialMarkets #WomenEquality #DEI Navesink International (https://lnkd.in/eq8vGgP) is the home of the best industry experts related to financial markets.

The financial industry pays women less than men. The discrepancies are large (25% to 50+%) and not reducing. What are the causes? - Banks say that women hold lower rank responsibilities, which combine with the heavily skewed compensation structure to explain the lower average compensations. - This article also mentions the child gap: women who had children lose in progression and compensation in the following years. But academics point to a different explanation. There is a statistically significant correlation between women at senior position and fraud. Simply said, more women at senior positions means less fraud. See for instance: - https://lnkd.in/e65Gk2mV - https://lnkd.in/eRHfZUjg - https://lnkd.in/eVyc8yGV - https://lnkd.in/eZ8BhCTd - https://lnkd.in/eQPARBvM So, why are banks not making any progress with women compensation and promotion again? Would this factor also explain why some prominent actors in our society are so opposed to DEI? Just ask'n. #FinancialCrime #Prevention #Regulation #Enforcement #FinancialMarkets #WomenEquality #DEI Navesink International (https://lnkd.in/eq8vGgP) is the home of the best industry experts related to financial markets.

⭐ Setting diversity targets, without tipping into discrimination. ⭐ Encouraging employees to attend social events to support teamwork and a positive culture, whilst policing alcohol excesses and behaviour. ⭐ Moving away from tick box data on demographics, towards inclusion in the widest sense: from the basics of gender and ethnicity, to socioeconomic background and carer responsibilities. ⭐ Building trust so employees share their data; having the staff and systems to collate the data and communicate it for public consumption. Just some of the current challenges for employers looking ahead to the future regulation of diversity and inclusion in the financial services sector. Keen to hear what others think are going to be the biggest mindset shifts needed. #DiversityAndInclusion #fca #EmploymentLaw #dentons https://lnkd.in/efXrT_RT

In the sixth instalment of our series on Diversity and Inclusion (D&I) in Financial Services, we outline key factors employers can focus on to build up trust and engagement with staff, which is vital for encouraging staff to offer up what is often very personal and sensitive information. Only when firms overcome the challenges involved in collecting good quality and quantity of D&I data can they truly start to analyse where they may be falling short and how D&I can be improved. To view the video with an accessible voiceover and captions, please follow this link here: https://lnkd.in/eRcU6xY5 #DiversityAndInclusion #DEI #FinancialServices #FCA#Directionoftravel#Diversity&Inclusion#inFinancialServices#Whatmakesgooddatacollection

Examining the Benefits of Tailored Financial Products for Women While socio-economic policy initiatives are important to improve women empowerment, supporting them with bespoke financial products is equally critical to foster greater financial inclusion and unlock the full potential of Nari Shakti in our country. Rajan Patel | YES BANK #womenempowerment #insuranceindustry #womeninbusiness #womenleaders #internationalwomensday2024 #financialproducts #financialservices https://lnkd.in/ekXicMKZ

Female financial inclusion - is the data faulty or the analysis?   I recently read this piece on female financial inclusion and it stated that the data available from SBP is contradictory and questionable. It made me revisit an analysis I did for ACCION’s Center for Financial Inclusion Blog post (link in comment), and there seems to be some misunderstanding on the author’s end. https://lnkd.in/dbRJEbCs Let’s break it down: Article excerpt: “For starters, the number of female bank accounts increased from 13.1M in June 2017 to reach 45.95M by December 2022.” My observation: The two data points are not comparable because 13.1 M were unique female accounts while 45.95 Mn were total (not unique) female accounts. The corresponding number for comparison is 28.1 M in Dec 2022. (Slide 1) Article excerpt: “…active female accounts also increased to 30.5M as of December 2022…compared to only 8.4M back in 2017…over two-thirds of all women-owned accounts, are active — even edging out the corresponding ratio for males at 64.9%.“ My observation: Again 8.4 M were total unique female accounts in 2017, and 30.5 M were total (not unique) active female accounts as of Dec-2022. The correct corresponding value would be 21.8 M for comparison. Active unique male accounts as a % of total unique male accounts were 83% as of June-22 compared to 81% for active unique female accounts as a % of total unique female accounts. (Slide 1) Article excerpt: “..active accounts of both males and females more than doubled between 2020 and 2022. What’s the explanation for them jumping so substantially, far outpacing the historical growth trends?”   My observation: Total unique (active) accounts (male + female) as of June-2020 are being compared to total active (not unique) accounts (male + female) as of June-2022). Refer to slide 2, you will observe that total unique active accounts (male and female) have grown by only 38% between Jun-2020 and June-2022 (far from being doubled). Article excerpt: “Then, some values don’t really add up. For example, the sum of female and male accounts in June 2019 was 62M, whereas total accounts stood at 92.9M. Where exactly are the remaining 30.9M coming from? We don’t really know because the value is too big to be explained corporate and NBFI accounts.” My observation: 92.9 M were total accounts and not total unique accounts which is why there is a difference of 30.9M. You can double-check this by adding total unique male + female numbers as of June - 2020 i.e. 54.5 M + 18.6 M = 73.1 M (which is what is mentioned as total unique accounts data under BoE policy document) but if you look at the draft policy document total accounts (not unique) were mentioned as 114.29 M. This might be the reason for confusion. As a final remark - the tech/startup community really needs to move on from bashing banks and bankers. Critical analysis is good, but overdoing sarcasm is amateurish. #data #notstory

Is the gender gap across advice closing? We have some conflicting stats in this week’s Financial Advisers Insights post. https://lnkd.in/gw9Bc3R2 #wealthdata #wealthmanagement #financialadvisers

We're closing out #NationalSmallBusinessWeek with this article by Pew Research Center that takes a look at small businesses in the US. The article states, "There were nearly 1.8 million high-propensity business applications in 2023, up from about 1.3 million in 2019." Read more below. https://pewrsr.ch/44pseKg

Why are DFS risks greater for women? A growing #digitaldivide, product design that excludes #women, and inadequate #redressmechanisms and analysis. After attending the July RFF event, CFI’s Advisory Council member Joanna Ledgerwood considers the many risks that come with #DFS and the possibility of losing recent gains in increasing women’s financial inclusion if these risks are left unaddressed. What can we do to address these risks? Read more: https://bit.ly/44Rjlbg #consumerprotection #responsiblefinance #financialinclusion