Money Matters 2024 - How to Improve Women's Financial Empowerment?
On March 3rd, 2024, Vestpod's Money Matters festival took centre stage at the iconic KOKO in Camden, London. In this panel discussion, we deep dive into ways to empower women financially and tackle important challenges, such as the gender wage gap, limited access to financial resources, and barriers to career progression.
In our first panel discussion, we tackled the big issue of the gender pay gap and the need for more diversity in the top tiers of business. We had a stellar lineup of panellists from the worlds of finance, entrepreneurship, and advocacy, each bringing their unique insights. These awesome women highlighted the challenges women face and offered practical steps to overcome them.
Soumaya Keynes, who’s well-known for her economic insights at The Financial Times, steered our conversation. The panel enthusiastically covered various topics, from the Ethnicity Pay Gap to empowering women to up their financial game. Let’s dive into their conversation and check out the real-world solutions they suggested for achieving gender parity and financial empowerment.
Speakers:
Cressida Myers, Head of International Multi-Asset Portfolio Management at JP Morgan.
Dianne Greyson, Founder of the #EthnicityPayGap Campaign which has recently produced a research report on The Impact of the Ethnicity Pay Gap on Black Women.
Vivi Friedgut, FinTech innovator and founder of Blackbullion, the financial wellbeing app for students.
Recognising the Scope of the Issue
Soumaya opened the discussion by mentioning an example she recently explored - the economic impact of motherhood, shedding light on the significant promotion gap that often emerges following the birth of a woman's first child. Despite efforts to bridge this gap, many women struggle to catch up professionally.
She recounted a response she received to the writing, noting the gendered nature of the feedback. There was a suggestion that it's reasonable for companies to delay promotions until a woman returns from maternity leave, to which she pointed out the illegality of such practices, underscoring the persistence of outdated attitudes toward gender and parenthood in the workplace.
Despite strides made towards change, Soumaya recognises that such attitudes persist, serving as a reminder of the broader challenges that remain.
However, today’s talk isn’t about placing blame but rather continuing the dialogue towards meaningful progress.
Dianne Greyson, founder of the Ethnicity Pay Gap campaign, talked about the often-overlooked aspect of pay disparity faced by women from minority ethnic backgrounds. Highlighting the intersectionality of gender and ethnicity, Grayson emphasised the need for concerted efforts to address the Ethnicity Pay Gap alongside the Gender Pay Gap.
She stressed the importance of engaging employees in the dialogue and implementing proactive measures to promote pay parity and diversity in the workplace.
Cressida Myers, International Head of Multi-Asset Portfolio Management at J.P. Morgan, grapples with the intricacies of investment decisions. Her job involves allocating capital on behalf of charities and foundations into the financial markets. The goal? To steadily grow the wealth of these organisations over time, enabling them to allocate funds toward their core missions, whether through grants or project support.
With 16 years of experience under her belt, Cressida is acutely aware of a glaring issue: the gender disparity in investment management. She notes that in the UK, there are more individuals named Dave managing investment portfolios than there are women in similar roles. While the statistic may raise a chuckle, it also serves as a sobering reminder of the persistent gender gap within the industry.
Her firm, JP Morgan, recognises the urgency of addressing this imbalance and is taking proactive steps to confront the issue head-on. They collaborate with various organizations, such as Girls Are Investors in the UK, to not only discuss gender diversity but also implement tangible actions aimed at driving meaningful change.
Encouraging Personal Empowerment
Vivi Friedgut's journey, after a decade in the wealth management world, drove her to establish Blackbullion – a testament to her commitment to levelling the playing field, especially for women. Rejecting the idea of tearing others down, she's all about lifting marginalised voices and sparking important conversations. Blackbullion's approach is hands-on: teaming up with colleges and universities, they address young people at a pivotal moment. The company is a big believer in starting early, embracing mistakes, and having a safety net to fall back on.
According to Vivi, confidence doesn't come before progress; it results from taking action and growing along the way. She emphasised the power of compounding and encouraged individuals to start investing early, regardless of their age or background. By fostering a culture of personal responsibility and continuous learning, Vivi advocates empowering individuals to control their financial futures.
Taking a moment to address the paperwork, dispatch it, and allocate a modest sum, will yield a significant advantage. That’s why taking the plunge is so important.
If you find yourself thinking, "What if it’s too late to get started?" The truth is it’s never too late, but of course, there are nuances. The older you get, the greater the imperative. Consider the rule of 72, a well-known principle in finance. It's used to estimate the number of years it will take for an investment to double in value, based on a fixed annual rate of interest. The accuracy of the Rule of 72 lies in its simplicity and approximation, making it a handy tool for quick calculations.
To use the Rule of 72, you divide the number 72 by the annual interest rate. The result gives you an estimate of the number of years it will take for your investment to double. For example, if you have an investment with an annual interest rate of 9%, you would divide 72 by 9, resulting in 8 years. This means that it would take approximately 8 years for your investment to double at a 9% interest rate.
While the Rule of 72 provides a useful estimate, it's important to note that it's based on certain assumptions and simplifications. It also doesn't account for factors such as taxes or inflation, which can affect an investment's actual growth.
Creating Inclusive Corporate Cultures
The panellists underscored the critical role of corporate leadership in driving positive change and fostering inclusive cultures.
While education is key, having career options matters, too. Think about the appeal of gigs in investment management—they're known for keeping your brain buzzing and letting you call the shots with your own cash. But here's the thing—even people who've nailed other careers can be pretty clueless about money stuff. Getting proactive is a wake-up call, especially when education is just a click away.
But it's not just on us as individuals. Companies need to step up, too. They've got to offer ways for us to explore careers and learn the ropes. JP Morgan, for instance, is all about giving people a peek into the world of portfolio management and finance through internships and special insight days. These grassroots moves are super key in unravelling tricky financial topics, especially for those who aren't used to them.
Dianne also called for a top-down approach to diversity and inclusion, urging companies to address discriminatory practices and prioritise diversity in hiring and promotion decisions. Cressida emphasised the importance of creating supportive environments where individuals feel empowered to voice their ideas and contribute to collective decision-making.
“Financial literacy and the stigma associated with not knowing enough about managing money is a persistent challenge. We can feel embarrassed that we don’t know enough about managing our money. It’s really important to have a good relationship with our bank as they can explain things clearly and in simple terms without the expectation that we would need to understand everything. Remember that no question is a stupid question.”
In discussions about diversity, it's clear that it goes beyond just ticking boxes for gender or physical appearance. There's a wealth of research showing that true diversity of thought leads to better outcomes. Investing, for example, is incredibly challenging, with even seasoned professionals getting just 54% of their decisions right. That's where embracing different perspectives becomes crucial.
Creating an environment where it's okay to make mistakes and learn from them is key. Diversity enables us to make better decisions collectively. But it's not solely on individuals; companies have a responsibility too. They need to establish structures and opportunities for growth, especially in large organisations where it's easy to get lost.
Take, for instance, our initiative called "Women on the Move." It's built on four pillars, both internal and external. One focuses on empowering female entrepreneurs, another on providing education and tools for understanding investing. Then, there's the pillar about taking ownership of your career, offering tailored training for junior to mid-career individuals, not just limited to women.
Unfortunately, such initiatives are still too rare. Not enough organisations are prioritising diversity and inclusion. While there are pockets of good work, it's not widespread enough to make a significant impact.
Looking Ahead: The Path to Progress
As the conversation continues and momentum builds for gender equality and financial empowerment, it is essential to remain vigilant and committed to action.
By addressing systemic barriers, promoting education and awareness, and fostering inclusive cultures, we can create a more equitable and prosperous future for all.
Empowering women in finance is not just a moral imperative; it is also a strategic investment in building stronger, more resilient economies and societies for generations to come.
Panel #1: How do we make the economy better for women? Credit: KOKO
Catchup on Money Matters 2024:
Panel #1: How do we make the economy better for women?
How to Work Towards What You Value with Stefanie Sword-Willians | Coming soon
Panel #2: Your Unique Wealth Building Journey | Coming soon
Current State of the Economy and Market Update with Iona Bain | Coming soon
Financial Joy: A Journey to Financial Independence with The Humble Penny | Coming soon
Panel #3: Cultivating Wealth | Coming soon
Cherise Live Music | Coming soon
Keynote interview with Candice Brathwaite and Emilie Bellet | Coming soon
Ottolenghi at Vestpod's Money Matters Festival 2024. Credit: KOKO
Candice Brathwaite and Emilie Bellet talking about redefining wealth. Credit: KOKO
Thank you to our partners:
At JPMorgan Chase, we believe that we have a responsibility to harness our business and policy expertise, research, data, talent and global presence to help create greater economic opportunity for more people.
PensionBee is incredibly passionate about helping women to save for retirement and eradicating the gender pension gap once and for all.
The Financial Times is one of the world’s leading business news organisations, recognised internationally for its authority, integrity and accuracy.
KOKO is an iconic London venue featuring live music, electronic nights, art exhibitions and a dynamic cultural calendar of events within its private members club The House of KOKO.
EQ Investors (EQ) is a B Corp wealth manager with an emphasis on providing high quality financial advice.
Live Nation Women is a division of Live Nation with a mission to power progress for women.
L’OCCITANE is a real romance novel; a simple story of being in love with nature and Provence, where some of the very best ingredients in the world can be found.
TOM FORD BEAUTY is a covetable collection of cosmetics, skincare, and fragrances, shaped with Tom Ford’s distinct vision of modern glamour and crafted with quality and luxury.