Gender parity in financial services an economic imperative

The financial services industry has made modest inroads with gender parity, and closing the wealth and financial literacy gap, but the reality is accelerated action is needed from the government and private sector to tackle entrenched inequalities as an economic imperative.

- Karren Vergara

This year's International Women's Day is urging the financial services sector to accelerate action for gender equality. While progress has been made, there is still urgent work to do when it comes to breaking down barriers to having an equitable and inclusive industry.

One small win is that the gender pay gap in financial services marginally narrowed from 23.6% to 22.2% in the last financial year, newly released figures from the Workplace Gender Equality Agency (WGEA) show.

Across all professions, this comes to a 21.8% pay gap or every $1 on average a man makes, women earn 78c. Over the course of a year, the difference amounts to $28,425.

One major win was the passing of the landmark Three Day Guarantee Bill on February 13, which guarantees three days of subsidised early childhood education and care (ECEC) and effectively removes the activity test for all families. The bill not only aims to make ECEC accessible and affordable, but also encourages mothers' workforce participation.

The Parenthood chief executive Georgie Dentº¹ said the passage of the bill is "big" and "game-changing reform".

"This change with the activity test is predominantly going to benefit women and households on the lower end of the income spectrum, but it is a huge milestone for all children and families in Australia, because it actually puts in place as a flag in the sand, where we say the minimum we accept is that every child should have the opportunity to participate in three days a week of high-quality early education and care," she told a recent Financial Standard podcast.

The Parenthood, which aims to make Australia the best country to be a parent or carer with the help of a community of about 82,000, has worked diligently in helping push the reforms across the finish line.