International Women's Day 2023: Let us pave the way for women in finance

Women's Day 2023: Imagine you are sitting in a crowded auditorium attending a finance conference. As you look around the room, you notice that the panel mainly consists of men. You cannot help but wonder: where are the women? 

According to an EY report, women only make up 24% of board positions in Indian companies, with the life sciences sector taking over the lead, followed by the media and entertainment sector, while finance positions remain few. Despite comprising almost half of India's population, women remain significantly underrepresented in finance leadership roles. In this article, Sonali Athalye, Chief Financial Officer at Aviva India, delves into the need for more women in finance leadership across companies.
The world isn’t the same anymore

The COVID-19 pandemic has affected every aspect of life, including how we work and interact with each other in the workplace. With remote work becoming the norm for many employees, businesses have had to adopt new technologies to stay connected and collaborate effectively. This has allowed employees from different parts of the world to work together and share their ideas and expertise in ways that may not have been possible before. 

With the rise of numerous financial services companies, there has been a paradigm shift in the way we value new-age companies. Traditionally, the more business a company does, the more profitable it becomes. However, for these new-age companies, each transaction or business deal results in a loss or burn yet contributes to greater market share. It is a paradox that defies conventional business logic. As the financial landscape continues to evolve, there is a growing need for nuanced approaches to finance and governance.

In recent years, there has been an increasing focus on ESG (Environmental, Social, and Governance), with companies recognizing the importance of sustainability and social responsibility. But achieving ESG goals is a complex process that requires a nuanced understanding of different industries and markets, as well as a willingness to challenge conventional thinking.

In all three aforementioned cases, the need for diverse perspectives arises. For example, a team comprising individuals with backgrounds in engineering, environmental science, and finance is likely to approach the challenge of identifying sustainable investment opportunities differently than one composed entirely of finance professionals. Similarly, the inclusion of women in finance teams, who are often underrepresented, can also bring fresh perspectives and solutions to the table. They have unique insights and experiences that enable them to identify risks and opportunities that their male counterparts may not have considered. 
 

So, what stops gender diversity in finance? 

In India, there are numerous preconceived notions surrounding women and finance. Many people believe that women are not good with money and lack the necessary skills to manage finances effectively. Some even go as far as to suggest that women are disinterested in financial matters altogether, leaving it to the men in their families. 
For others, the idea of working in finance means complex mathematical equations, spreadsheets filled with numbers, and charts and graphs that only a math genius could understand. However, the truth is that being good in finance does not necessarily mean being good in maths. While mathematical skills are certainly important in finance, but being good in finance does not necessarily mean being good in maths. Finance is a multidisciplinary field that includes financial analysis, investment management, risk management, and corporate finance, among other areas. Rational and strategic thinking, strong analytical skills, and excellent communication are all essential qualities for success in finance, and history has proven that women excel in such interpersonal skills.

Who can bring the change? 

Short answer- You. Yes, you, the bold women of today. 
The onus lies on you to challenge these stereotypes that have long held women back and enter the world of finance. You can achieve this by taking the initiative to break down barriers, debunking preconceived notions surrounding finance, advocating for diversity and inclusion, promoting a more inclusive culture, and embracing new technologies and approaches to financing. You can create a more diverse and talented workforce by bringing different perspectives to drive innovation and progress within the industry.
It is time to break through the glass ceiling and encourage more women to pursue careers in finance. Let us work towards a world where gender is no longer a barrier to success in finance leadership, and every individual is empowered to achieve their full potential.

(Author of the article is Sonali Athalye Chief Financial Officer at Aviva India. Views expressed are personal.)

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