Via Trade Finance Global by Deepa Sinha, Deepesh Patel, and Carter Hoffman
Change is still a slow march when it comes to gender equality in the financial services industry. While incremental progress has been made, the lingering pay gap remains glaringly apparent.
It’s easy to point to the gender pay gap as a clear-cut metric of inequality, but the reality is far more complex, hidden beneath structural barriers and cultural norms that still need to be dismantled. Addressing these challenges requires a shift in mindset, a concerted movement to lift each other up, and a willingness to initiate bold, practical actions.
Trade Finance Global (TFG) spoke with Deepa Sinha, Vice President of Payments and Financial Crimes at the Banker’s Association for Financing and Trade (BAFT), to learn more about how these deeply rooted issues took centre stage and discuss strategies for turning awareness to action.
The ongoing fight against the gender pay gap in finance
The gender pay gap is a longstanding issue that has haunted the finance industry for decades. Today, many financial institutions are still paying women significantly less than their male counterparts.
It’s not just about pay. Financial services have been slow to recognise the full value of women’s contributions, often relegating them to roles where opportunities for advancement are limited. The pay gap is just a glaring symptom of an underlying condition that involves issues around opportunity, inclusion, and cultural change.
However, awareness of the gap is growing, and that is the first step toward change.
It’s not enough to simply notice the disparity; action is needed. There are now efforts within the financial services industry to develop focused and structured initiatives that provide women with the tools they need to succeed.
Whether through mentorship programmes, leadership development opportunities, or actively engaging women in thought leadership, these steps, while not revolutionary, are certainly evolutionary—nudging the industry closer to fairness.
Women’s unique strengths in transaction banking
But what exactly do women bring to transaction banking that might have been overlooked? There’s something to be said about the unique strengths that women often bring to this field, particularly in areas like payments and financial crime compliance. Women approach challenges differently, and this difference is precisely what the banking sector needs.
Sinha said, “Research suggests that women often approach risk more cautiously, which can be a critical advantage in transaction banking. This perspective helps create robust risk assessments, reducing potential exposure to fraud and other financial crimes.”
Beyond risk management, empathy plays a key role in enhancing customer interactions. Women’s emphasis on empathetic communication builds trust—a quality that cannot be overstated in the world of payments and finance.
Sinha said, “This empathy allows them to address customer pain points with more nuanced solutions. That’s crucial in transaction banking where trust and relationships are essential.”
This empathy, combined with a detail-oriented approach, becomes especially powerful in fields like compliance. When it comes to anti-money laundering efforts and screening for suspicious activity, an eye for detail can mean the difference between catching a subtle sign of wrongdoing and letting it slip through the cracks.
Tearing down barriers to gender equality
Promoting gender equality in an industry like finance requires confronting structural, cultural, and individual barriers head-on. This means building programmes that mentor and sponsor women while simultaneously addressing the systems that have kept women from advancing for far too long.
Sinha said, “Sponsorship or championship, in particular, where senior leaders actively advocate for women’s advancement, is essential for promoting women in decision-making roles. These programs provide women with the guidance, visibility, and advocacy necessary to advance into senior leadership, where gender representation is still severely limited.”
Mentorship is a key piece of this puzzle—not just traditional mentorship—but reverse mentorship, where younger professionals offer insights to senior leaders, allowing for a two-way exchange of knowledge. By creating spaces where women can be visible, their voices heard, and their work recognised, these types of initiatives can help bring true representation into leadership roles.
But perhaps just as important as these programmes is the need for flexible and inclusive work policies. Many in the workplace balance professional aspirations with caregiving responsibilities, whether for young children or elderly family members.
Sinha said, “If I have young children that I need to leave the office for at five o’clock every day to go take care of, but I’m able to hop back online later after the kids are down for the evening, that flexibility is invaluable. It’s priceless. When you have a network that is similar to you but is diverse enough to understand what you’re going through, you’re all going to make it work and make it happen together. But that only comes with the relationships that we build with our peers.”
Tearing down barriers also means setting measurable goals. Accountability is crucial; organisations must set clear targets for diversity and track progress. Transparent metrics around hiring, promotions, pay equity, and leadership representation are what will ultimately keep companies honest about their efforts.
The spark that became Women in Transaction Banking (WTB)
Sometimes, profound change starts with a simple idea.
Sinha said, “Just after our BAFT global annual meeting in 2023 in San Francisco, I was in an elevator discussing women in payments with Maram Al-Jazireh from Arab Bank, and I mused, ‘Why don’t we have anything for women in payments and trade?’. She replied, ‘Well, why don’t you start something?’”
What started as an innocent question became a full-fledged movement. The WTB initiative grew out of the recognition that women in the industry, especially in middle management, need more opportunities to connect, grow, and thrive.
This initiative focuses on several key areas: mentorship, education, sponsorship, and building a community where women can share experiences, learn from one another, and navigate the complexities of the banking world together. This program aims to provide women in middle management with the knowledge and skills they need to succeed.
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The journey towards gender equality in finance is ongoing. While progress has been slow, conversations are starting to turn into actions, and ideas are taking root, growing into initiatives like Women in Transaction Banking. The pay gap is still there, but it is no longer being ignored. Women are stepping into roles that are reshaping the culture of banking, bringing empathy, caution, detail, and collaboration to the forefront.
Rethinking how the financial industry operates at every level, through mentorship, flexible policies, or simply recognising the unique value that diverse perspectives bring, are steps towards a more inclusive future.
There’s still a long way to go, but as these conversations take hold, there’s a sense that meaningful change is the natural next step.