From buying a home to saving money for retirement, the financial services industry is part of some of the most important milestones in our lives.

The industry is a vital part of the UK too, contributing £208.2 billion to the British economy and employing over one million people. Increasingly though, the industry’s inequalities are coming under the spotlight, especially since 2017, when mandatory gender pay gap reporting made clear how few women make it to the top jobs in finance.

In her work, Dr Ylva Baeckström, Senior Lecturer in Finance at King’s Business School, has focused on the financial services industry’s relationship with women both as consumers and employees. She argues that given its scale and importance, the financial services sector could role model diverse and inclusive business practices, but it does not.

With a professional background in financial services, fintech and psychotherapy, Ylva’s research sits at the intersection of finance and psychology: why is there gender inequality for women as individual investors and as employees in financial services, and how do inequalities and gender stereotypes relate to financial literacy, confidence and risk tolerance?

How do women behave as consumers of financial services?

Gendered behaviours have a tangible impact on women’s financial wellbeing. According to recent figures, men are almost twice as likely to put money in investment products as women. 37% of women do not invest at all (compared to 24% of men), citing risk and lack of knowledge.

If women consumers feel they are not equipped to take financial risks, then as a consumer group they are less likely to reap a financial reward.

In 2023, the UK government began reporting on the gender pension gap, created by a combination of women's investment patterns and lower lifetime earnings. The gap between women’s retirement savings and their longer average lifespans compared to men’s can have serious consequences for women’s economic freedom in retirement.

What’s it like for women working in the financial services industry?

The financial services industry has the poorest gender pay gap record out of all business sectors in the UK. Ylva’s own research has found systemic bias and under-evaluation of women employees across the industry.

In 2024, Ylva contributed to the UK government’s Sexism in the City report, which painted a bleak picture of what it’s like for women working in the sector. It described antiquated, male dominated cultures, and high rates of sexual harassment in financial services.

Ylva’s research was distilled into her 2022 book, Gender Bias and Finance: Addressing Inequality in the Financial Services Industry.

How Ylva’s research is making a difference in the financial services sector

Despite the size of the challenge, Ylva is committed to creating a sea-change within the industry. She has established herself as a leader and expert in her field, and is regularly called upon by media outlets to provide comments and analysis on the business world.

Her work and research at King’s has led her to become a TEDx speaker, and host training sessions on gender bias with some of the industry’s biggest players in the UK and overseas.

Ylva’s work has helped to highlight stark problems in the financial services sector, and the industry is beginning to listen.