Women continue to be shut out of senior roles in UK financial services, with fewer than one in five leadership posts held by women, new figures show.
Research by law firm Fox & Partners found that out of 66,860 senior executives across the industry only 12,430 were female, representing 19 percent of the total.
The share has inched up only slightly from 18 percent last year, underlining the slow progress being made despite years of pledges and diversity targets. The gender divide is even greater with the top job: of 5,140 chief executives analysed, just nine percent were women.
“The proportion of women in senior leadership of financial services companies has been moving forward, but at a remarkably slow pace,” Catriona Watt, a partner at Fox & Partners, said.
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Broader benchmarks
The lack of women in senior finance roles is even more stark when set against wider benchmarks. The FTSE Women Leaders Review reported that women made up 35.3 percent of senior leadership positions in the FTSE 350 in 2024, still short of the voluntary target of 40 percent by 2025 but well ahead of the finance sector.
A similar pattern emerges in the government’s Women in Finance Charter, a voluntary initiative now signed by about 450 firms. Its latest report showed female representation in senior management at 36 percent in 2024, up from 35 percent the previous year. The figures suggest that while progress is patchy across industries, financial services lags significantly behind.
Observers point to several factors holding women back in finance, with workplace culture and limited access to high-profile projects continuing to act as barriers, while caring responsibilities still fall disproportionately on women. Pay structures are also a concern. Women in senior finance posts earn on average a third less than men, according to an analysis of salary data, largely due to bonus systems that reward the types of roles men are more likely to hold.
Concern is also growing that the reversal of diversity, equity and inclusion programmes in the United States may have a chilling effect in the UK. Watt said there was a risk that “the reversal of many DEI initiatives at financial services businesses in the US could lead to a slowing of investment in programmes in the UK that improve diversity at senior levels within banks and fund managers”.
Impact on business
The under-representation of women at the top of finance is more than a fairness issue, as studies have linked diverse leadership teams with improved decision-making and better financial performance. Regulators and investors are also increasingly looking at diversity data when assessing firms.
Without visible female leaders, experts warn, companies risk losing talent, as younger women see fewer role models and less incentive to stay in an industry that appears closed off at the highest level.
Fox & Partners suggested that firms need to attract more women into the industry and give those already employed a clearer view of potential career paths. “Financial services firms need to create a positive workplace culture that incentivises women to stay long term and show them what their career path can look like. They also need to be given the experience and exposure to roles that allow them to compete for senior leadership positions,” Watt said.
Other experts argue that stronger accountability is required. The Women in Finance Charter obliges signatories to publish their own targets, but many fall short. Campaigners say companies that consistently miss their goals should face greater scrutiny from regulators and investors.
Retention is another priority. Flexible working, now more widespread since the pandemic, is seen as crucial in helping women remain in the industry during periods of greater family responsibility. Mentorship and sponsorship programmes, which give female staff access to senior sponsors who can advocate for them, are also viewed as effective.
Bonuses being reviewed
Pay transparency is being pushed as another lever for change, with bonus structures, long criticised as favouring men in revenue-generating roles, under review at several big firms. Advocates argue that unless incentives are rebalanced, female executives will remain underpaid and undervalued compared with their male peers.
At the current pace, parity in senior leadership across the industry looks distant. Government reports suggest it could take well into the 2030s before women reach equal representation, and that assumes progress continues rather than stalls. With finance falling behind other sectors, pressure is likely to grow on banks, insurers and investment managers to accelerate reform.
