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NEWS


Gender pay gaps at UK fintechs revealed – how do they stack up?


T


he deadline for publishing gender pay figures has loomed large in the minds of UK-based firms for some time. Now, with more than 10,000 sets of data submitted – and 1,000 taking until the final 24 hours to submit – that data is available for all to see.


Individual company data was reported by companies to the UK’s Government Equalities Office. For reference, the UK’s average pay gap is 18.4%. The average pay gap of the 10,000 companies which reported to the government stands at 9.7%


Companies had to file data based on a “snapshot” of their payroll taken on 5 April 2017, and could file the information at any point after that. As such, these 2017 figures may not be representative of these firms at the time of writing. The submission process will be repeated annually.


It is worth noting that the government’s Equality and Human Rights Commission encourages businesses to treat gender pay gap statistics as “part” of the story. The publishing of action plans devoted to tackling the issue is given more weight.


IBS assessed these firms on the following three metrics:


• Median pay gap • Percentage of women in higher-paid jobs • Percentage of women in lower-paid jobs


For each category, we will show the average across the industry sector, and then go into more detail about specific firms.


So, without further ado, how do some of the biggest names in UK fintech stack up?


The banks


Average pay gap: 33% Women in high-paid roles: 29% Women in low-paid roles: 64%


IBSI looked at some of the largest names in UK banking, including global names. On average, the gender pay gap sat at 33%.


Barclays Bank reported the highest gap, with women being paid 43.5% less on average than their male counterparts. Just below Barclays in the ranking is Lloyds, with 42.7%. Lloyds employs comparatively more women in higher-paid roles, with 31.5% to Barclays’ 18.4%. The firm also employs more women in its lowest paid jobs, at 72.8%.


Nationwide and Royal Bank of Scotland reported gaps of 31% and 36.5% respectively. At Nationwide, 67% of the lowest-paid jobs are occupied by women. At RBS, that figure is 69.6%.


HSBC (29%), Santander (29.1%) and JP Morgan Chase (23%) were next in the list. At all three, more than 60% of the lowest-paid roles are filled by women. According to a report from the government, while it takes a man on average 17.5 years to become managing director, it takes the equivalent woman 19.5 years.


Lower down, it takes women on average an extra six months longer then men to get to associate or vice president, but the same time (13.5 years) to make director.


The lowest gap found among the major UK banks investigated was at the Co-Operative Bank, at 22.6%. The bank comes closest to the UK average.


When it came to bonuses, Barclays reported between 90% and 95% of their workforce receiving bonuses, no matter the gender. Yet women’s mean bonus pay is 70.4% lower than men’s, while median bonus pay is 60.7% lower than men’s. At RBS, 51.6% of women receive bonus pay, compared with 64.1% of men. Women’s median bonus pay at the bank is also 36.6% lower than men’s.


Bonus pay was also found to be markedly lower at HSBC (61%), Lloyds (60.7%), Standard Chartered (55.1%), Santander (40.5%), JP Morgan (38%) and Nationwide (37%).


The challengers


Average pay gap: 31.28% Women in high-paid roles: 32.38% Women in low-paid roles: 58.30%


Perhaps due to their nature and low number of employees, several of the UK’s challenger banks have not reported their figures.


The largest gap was reported by Starling Bank, at 33.3%. The challenger, led by CEO and founder Anne Boden, also reports that 16% of its highest-paid roles are filled by women. The company notes that it was not legally obliged to disclose its figures.


“Being a woman in finance or tech is tough. We generally have to work twice as hard, for twice as long, to get half as far as men – and so it’s very important to me that Starling is as transparent as possible about how we currently stack up on issues like gender pay,” Boden wrote in a blog.


www.ibsintelligence.com | © IBS Intelligence 2018


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