India’s independence was a critical turning point for women’s participation in the financial services sector. Although the first bank in the country was established in 1770 there is barely a record of women in banking or finance-related roles. These limitations were deeply rooted in societal norms that restricted women’s participation in educational and economic opportunities. After independence, however, India’s focus on equality and women’s rights created a firm foundation for women’s participation in the workforce.  The nationalisation of banks in the 1960s and the economic reforms of the 1990s further advanced their economic participation. Between the 90s and now, several women have made notable strides in the industry and inspired countless others to follow suit.

This period marked the rise of women leaders in financial services.  Tarjani Vakil, was the first woman to serve as the chairperson and managing director of Exim Bank; Naina Lal Kidwai, the first woman to lead a foreign bank (HSBC) in India; and Arundhati Bhattacharya the first woman chair and MD of State Bank of India.  They marked the rising importance of women in a historically male-dominated field. Today, women comprise about 24% of the Banking, Financial Services and Insurance (BFSI) workforce. But, only 15% are in leadership roles. With their growing contributions to financial innovation, and revenue generation, sector has a clear opportunity to tap into this underutilised leadership potential.

Risks, Revenues and Returns: How Women Contribute

Research consistently demonstrates the unique value women bring as leaders in finance sector. A study by S&P Global estimated that companies with women Chief Financial Officers (CFOs) achieved 6% higher profits and 8% higher stock returns. Studies have shown that having women in leadership roles can significantly benefit the banking, financial services, and insurance (BFSI) sector. An econometric analysis by the International Monetary Fund (IMF) in 2017 found that banks with women leaders or a higher percentage of women on their boards tend to be more stable and have lower non-performing loan ratios.

Women excel at creating collaborative work environments that foster innovation and inclusivity. Their approach often shows high emotional intelligence, which makes for better and more collaborative teams, and effective strategies. This characteristic proves particularly valuable in the BFSI sector, where nurturing talent and addressing customer needs are equally important.

For example, Shanti Ekambaram, the Whole Time Director at Kotak Mahindra Bank, led initiatives like the digital savings account 811 – a consumer-centric response to policy changes in India, strengthened the bank’s custody business, executed the ING Vysya merger, and raised the gender diversity ratio from 10% to 28%. Her leadership has consistently demonstrated how inclusion, fostering talent and business growth can go together.

Championing Inclusive Products & Services

Women are increasingly taking charge of their finances. Between 2015 and 2021, women operating bank accounts surged from 53% to 79%. However, their access to credit remains low – a gap that financial institutions need to address. Furthermore, the financial needs of women evolve significantly throughout their lifetime, from early career savings to investment planning and retirement security. A recent DBS study focusing on earning women in metropolitan cities highlighted the growing demand for tailored financial products that address specific needs. Without women on the supply side of financial services, these needs might not be well understood.

This is particularly the case when it comes to women-centric products and femtech. As investors, women have better insights into such products and an innate understanding of how the proposed female target audience will relate to them.  According to Intellecap, approximately 70% of gender lens funds investing in women-owned businesses were either seeded by women investors or raised funds from women as limited partners.

Caspian Debt offers a great example of women’s importance as investors. Women make up 40% of the organisation’s team, with 50% of its leadership and client-facing roles held by women. This focus on gender equity has been integral to Caspian’s recognition as a 2X Flagship Fund – an initiative that sets global standards for gender lens investing by encouraging investments in women-led businesses and promoting gender balance in the workforce.

Fostering Women’s Leadership in BFSI

Networking and knowledge-sharing are crucial for advancing women’s inclusion in the BFSI sector. Building strong professional networks provides women with access to mentorship, sponsorship, and career opportunities. Platforms such as Aspire for Her and Stree-Leads help women exchange knowledge, ideas and advice on navigating challenges. Organisations, especially educational institutions, can encourage women to join such networks and leverage the insights of successful women leaders.

As with other sectors, sponsorship can be significant in advancing women in financial services too. Men in senior positions, especially in roles such as investing where women’s participation is comparatively lower, can intentionally mentor and sponsor women for leadership designations. This sponsorship, combined with flexible workplace policies and reasonable accommodation, creates an environment where women can thrive and advance their careers without compromising work-life balance.

Furthermore, it is also important to establish women as thought leaders. Encouraging them to widely share their experiences and insights can inspire the next generation of female financial leaders. Sharing their expertise and input on the more technical aspects of the financial sector is also critical in breaking biases.

The Path Forward

Increasing women’s leadership representation in the BFSI sector drives business excellence and innovation. Women leaders bring unique perspectives that enhance decision-making, improve risk management, and create more inclusive financial products. As financial services continue to evolve, the participation of women leaders will be crucial in shaping the future of the sector, the nation, and women across social strata.

Views of the author are personal and do not necessarily represent the website’s views.

Author of the article Manoj Kumar is the Chief Human Resources Officer at Edelweiss Asset Management. He is an alumnus of the Tata Institute of Social Sciences (TISS). With certifications in GLA 360, Thomas PPA, and Predictive Index, he brings a data-driven and people-first approach to talent management and organizational development. His leadership has been recognized through the prestigious Young Millennial HR Leader accolade by the Great Manager Awards.

Author of the article Naghma Mulla is the CEO of EdelGive Foundation. Naghma is also a member of the Core Committee of the India Climate Collaborative – a collaboration of India’s leading philanthropies committed to addressing the climate crisis in India. Naghma is mentor at the Nadathur S. Raghavan Centre for Entrepreneurial Learning at IIM Bangalore, providing strategic support to several start-ups. She is a Chartered Accountant from the Institute of Chartered Accountants of India (ICAI) and has a Master of Commerce (M. Com.) degree from Pune University.