It’s encouraging to see more women stepping into top spots in the UK’s financial sector, but let’s be honest, the pace feels a bit like watching paint dry sometimes. Recent statistics paint a picture of gradual gains amid stubborn barriers, with women holding just 18.6% of senior executive roles across UK financial services firms as of late 2024. That’s 12,430 women out of 66,860 top positions, including CEOs, executive directors, and chief risk officers, and only 9.1% of those CEOs are women – a tiny fraction of the 5,140 leaders in that role.
This highlights how little things have shifted, up just 0.4% from the previous year, which is frustrating when you think about the bigger picture. Regulators like the FCA and even the European Central Bank keep talking about how diverse boardrooms lead to smarter decisions and less risky behaviour, especially after the lessons from the global financial crisis. Yet here we are, financial services lagging behind FTSE 350 targets for 40% female board representation.
Boardroom Gains Offer a Glimmer of Hope
Zoom out a bit, and there’s some brighter news on boards. Back in 2018, women made up 22.9% of directors in UK financial services, trailing the European average of 26%. Fast forward to 2023, and that figure climbed to 37.2%, which is a sign that efforts like the HM Treasury’s Women in Finance Charter, launched in 2016, are nudging things forward. Signatories to the charter reported an average 35% female representation across their workforces in 2022, up from 33% the year before, and well past the 30% tipping point where real change supposedly kicks in.
In banking specifically, women now fill 39% of senior management roles in UK banks and a whopping 43% in building societies, beating some sector targets. Global and investment banking are still playing catch-up, at 28%. Overall, 71% of charter signatories increased women’s presence in senior leadership that year, which is progress after a dip in 2021. But experts warn that without sustained push, we could stall out, especially with DEI backlash spilling over from the US.
CFO Roles: Where Women Are Making Real Strides
One area shining through is the CFO suite, particularly in mid-market firms. Grant Thornton’s latest research shows 45% of UK mid-market CFOs are women, edging ahead of the global 44.6% average. That’s the second senior role to top 40% globally, after HR directors. Think about the tough times: post-Brexit from 2016-2020, female CFO numbers jumped 21 points; through Covid and inflation spikes to 2022, another 7 points. Across UK senior management, women hold 36% of positions, beating the global 34% mark.
Diverse finance teams are proving they can handle uncertainty, from economic shocks to market volatility. Yet CEOs remain elusive, with women at only 7% in FTSE 350 firms – just 19 female CEOs out of hundreds. Finance directors? A measly 22%. The FTSE Women Leaders Review 2025 notes steady climbs to 35.3% in executive committees and direct reports, plus near-parity (43.4%) on boards, but executive board roles hover at one in six.
What’s Holding Things Back – and How to Fix It
So why the crawl? Catriona Watt from Fox & Partners points to sluggish internal promotions and a lack of early exposure for women to high-stakes roles. Many firms need to build cultures that keep women in financial roles around long-term, showing clear career ladders. Then there’s the US influence: banks like Barclays at 27% on exec committees (below 40% targets), Goldman Sachs ditching diversity pledges for IPOs. If UK firms follow suit, momentum could fizzle.
But there’s optimism too. The UK’s voluntary approach – targets, transparency, no quotas – has delivered without mandates, unlike some European spots. FTSE 350 firms hit 43% women on boards through business-led accountability. In financial services, though, we need more: attracting talent, mentoring, and flexible work that fits real life. Imagine if every firm shared success stories from building societies or mid-market CFOs – that could spark a ripple.
Take the Women in Finance Charter’s sub-sectors: while banking and building societies exceed averages, investment banks have a growing gap to their own goals, now 9% off in 2022 from 3% in 2016. To hit parity, thousands more women leaders are needed, especially in banking core roles. It’s not impossible; it’s about commitment.
Looking Ahead: Parity on the Horizon?
Women in finance aren’t waiting for permission anymore. From mid-market boardrooms to FTSE leadership, they’re proving their mettle. Sure, 18.6% in senior execs sounds dire, but pair it with 45% CFOs and 37% boards, and you see a pipeline forming. The question is, will firms invest in it amid economic headwinds? Or will we see backsliding?
Diversity isn’t a tick-box; it’s how we outsmart the competition. As 2025 unfolds, let’s hope financial services doubles down. The data screams potential; now it’s time for action. With 36% in UK senior management overall, finance can lead, not lag. Progress might be slow, but it’s real. Keep an eye on those charter reports and FTSE reviews – they’re the roadmap to something closer to equal.