Despite progress, gender inequality remains a persistent challenge for society. Women and girls face structural barriers, including systemic discrimination, restrictive gender norms, and disproportionate caregiving responsibilities. These factors limit their access to education, employment, and financial resources.
The financial sector itself is not immune—while women make up over half of the banking workforce, they hold just 23% of executive roles, according to Equileap’s 2023 report. Meanwhile, women entrepreneurs globally face a staggering $1.5 trillion credit gap, as highlighted by the SME Finance Forum.
The tide is turning.
At the recent UNEP FI 2024 Global Roundtable, the United Nations Environment Programme Finance Initiative (UNEP FI) and UN Women unveiled a groundbreaking new resource: Advancing Gender Equality and Women’s Empowerment: Target-Setting Guidance for Banks. This guidance provides banks with a clear roadmap to embed gender equality into their business strategies, workplace policies, and financial services. By taking decisive action, banks have an opportunity to drive real change in three key areas.
Championing gender-inclusive leadership
Banks play a critical role as employers, and fostering gender-inclusive leadership is a powerful way to drive change from within. Creating equal opportunities for career advancement, implementing policies that support work-life balance, and ensuring fair pay are just a few ways financial institutions can close the gender gap. Diverse leadership teams contribute to stronger governance, improved financial performance, and greater innovation. Banks that prioritize gender-inclusive leadership not only strengthen their internal culture but also set a powerful example for the entire financial ecosystem.
Shifting investment portfolios toward gender equality
Beyond internal policies, banks have the power to influence the broader economy by integrating gender-focused criteria into their financing decisions. This means assessing corporate and business clients on their gender impact, prioritizing investments in women-led enterprises, and leveraging financial instruments like gender bonds to close funding gaps. Aligning financial flows with women’s empowerment objectives doesn’t just make sense from a social standpoint—it also opens untapped markets and customer segments, driving long-term profitability.
Advancing women’s financial inclusion
Women, particularly those in micro, small, and medium-sized enterprises remain underserved by traditional financial services. Banks can take proactive steps to design products that meet the unique needs of women —from flexible credit options to tailored financial education programs. By expanding access to banking services and fostering financial literacy, banks can empower women to build wealth, grow their businesses, and contribute to economic resilience.
The road ahead
The UNEP FI and UN Women guidance is a game-changer for the banking industry, providing banks with the tools to set measurable gender-equality targets and track progress effectively. As financial institutions continue to align their strategies with the UN Sustainable Development Goals—particularly Goal 5, which focuses on achieving gender equality—there is an unprecedented opportunity to redefine the role of banking in building a more inclusive and equitable financial system.
For banks willing to take the lead, the rewards are significant. Gender equality is not just a moral imperative—it’s a business one.
Access UNEP FI’s guidance and checklists, including gender equality and women’s empowerment resources in Spanish, for help implementing gender-inclusive policies and practices across your business operations.