Finance is one of the highest-paying and most influential industries and yet women pursue finance careers at a much lower rate than men. Almudena Cañibano and Marion Festing investigate what is holding female students back from specialising in finance.
Finance is one of the world’s most powerful industries. It dictates where money flows, shaping which businesses, technologies and industries thrive. In short, finance influences the world we live in today—and the one we will inherit tomorrow. Yet, despite its importance and lucrative salaries, women continue to be underrepresented in this field. Our recent study reveals that gender stereotypes and a lack of early exposure to finance-related careers may be key barriers holding female students back from engaging in a career in finance.
Stereotypes still shape career choices
The study surveyed 400 first-year Master’s in Management students and found clear differences in how male and female students perceive finance. Female students reported significantly lower interest in stock markets and financial investments compared to their male peers. Instead, they were more drawn to fields such as travel, cultural exploration, fashion and design.
While both male and female students rated factors such as financial security, financial achievement and positive work relationships as important for their careers, a significant gender divide emerged when it came to work-life balance. Female students placed considerably more emphasis on this aspect, aligning with broader societal expectations about gender roles and career priorities.
Perhaps unsurprisingly, these attitudes translated into career choices in management. Male students were significantly more likely to choose a finance specialisation, viewing finance as a more attractive career path. Meanwhile, female students gravitated toward sustainability and marketing. But are stereotypes the only explanation? Our study suggests an alternative factor that may be equally, if not more, influential: experience—or rather, the lack of it.
Experience and exposure matter
The data revealed that nearly half of the male students surveyed had prior experience in finance, such as internships, compared to only one-third of the female students. This discrepancy is crucial because students with prior exposure to finance were far more likely to continue their training in this field. It’s a classic case of “you can’t be what you can’t see”. If female students don’t get early insights into finance, they may never consider it as a viable career path.
Interestingly, other potential influences, such as having parents or close connections working in finance or holding leadership positions, did not significantly impact students’ career choices. Instead, focus group discussions suggested that many female students lacked awareness of the wide range of roles available in finance. The finance industry is much more than investment banking. It includes roles in sustainable finance, fintech, risk management and impact investing, among many others. Without this knowledge and first-hand experience, finance may seem like a narrow, high-stakes, and male-dominated field, discouraging women from pursuing it.
The ripple effects
The absence of women in finance is not just an issue of fairness; it has profound consequences for the economy, society, and the future direction of industries worldwide. First, finance wields significant decision-making power over which businesses receive funding and which industries grow. If women are absent from these discussions, investment decisions may reflect a narrower set of perspectives, potentially overlooking industries that disproportionately affect women or align with their interests. Second, finance is one of the highest-paying industries. The persistent gender gap in finance career choices contributes to the overall gender pay gap, limiting women’s economic power and financial independence. Encouraging more women to enter finance isn’t just about equity—it’s about economic empowerment and societal development.
How we can break the cycle
Addressing these disparities requires a multi-pronged approach. Given that early exposure plays a crucial role in shaping career interests, initiatives that introduce young women to finance before they make critical career decisions can be game changers.
For example, our Women in Finance Chair is actively working to bridge this gap through targeted programs that equip female students with the resources, knowledge and confidence to pursue finance careers. Besides raising awareness in teaching and international case study competitions focusing on career opportunities in the finance industry, we are also organising personal advice and support for female management students with a set of programs:
- Mentoring programs connect female students with successful women and men in finance, providing guidance, career advice, and networking opportunities.
- Mastermind groups offer valuable insights on important career-related topics, peer support and a space for women to navigate challenges and share experiences.
- Speed-dating career events help students explore the breadth of opportunities in finance, from investment banking to impact investing.
By fostering awareness, providing mentorship, and challenging outdated stereotypes, we aim to create a more inclusive financial sector. When more women enter finance, we all benefit—from a more diverse investment landscape to a more equitable economic future.
The time to act is now. Let’s ensure that the next generation of financial leaders is as diverse as the world they help shape.
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- This blog post is based on a study the authors conducted as part of the Women in Finance Chair at ESCP Business School.
- The post represents the views of its author(s), not the position of LSE Business Review or the London School of Economics and Political Science.
- Featured image provided by Shutterstock.
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