How Banks Can Drive Gender Equality in Finance
Despite progress, gender inequality remains a major challenge in society, particularly in the financial sector. Women and girls still face systemic barriers, from restrictive gender norms to unequal access to education and employment opportunities. Even within the banking industry, where women represent over half of the workforce, they hold only 23% of executive roles, according to Equileap’s 2023 report. On top of that, women entrepreneurs worldwide encounter a staggering $1.5 trillion credit gap.
But change is happening. At the UNEP FI 2024 Global Roundtable, the United Nations Environment Programme Finance Initiative (UNEP FI) and UN Women introduced a groundbreaking new resource: Advancing Gender Equality and Women’s Empowerment: Target-Setting Guidance for Banks . This initiative gives financial institutions a clear roadmap to embed gender equality into their strategies, workplace policies, and financial services. By taking decisive action, banks can create meaningful change in three key ways.
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First, championing gender-inclusive leadership. Banks have the power to lead by example by fostering more inclusive work environments. This means promoting equal opportunities for career advancement, supporting work-life balance policies, and ensuring fair compensation. Diverse leadership teams not only drive better decision-making and innovation but also strengthen governance and financial performance. When banks prioritize gender equality at the top, they set the tone for the entire industry.
Second, shifting investment portfolios toward gender equality. Banks influence the broader economy through their financing decisions. By integrating gender-focused criteria, they can direct capital toward women-led enterprises, support gender-inclusive businesses, and leverage financial tools like gender bonds to close funding gaps. Investing in women isn’t just a social responsibility—it’s also smart business, tapping into underserved markets and driving sustainable growth.
Third, advancing women’s financial inclusion. Women, especially those running small and medium-sized businesses, are often overlooked by traditional financial services. Banks can change this by designing products that meet their unique needs—offering flexible credit options, tailored financial education, and better access to banking services. When women have the financial tools to succeed, they can grow their businesses, build wealth, and contribute to stronger economies.
The UNEP FI and UN Women’s new guidance provides banks with practical steps to set gender-equality targets and track progress. As the financial sector aligns with global sustainability goals—especially UN Sustainable Development Goal 5 on gender equality—banks have an unprecedented opportunity to shape a more inclusive economy.
For those financial institutions ready to lead the way, the benefits are clear. Gender equality isn’t just the right thing to do—it’s a strategic advantage that strengthens businesses, economies, and societies.
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