It’s 2024, but parts of the UK financial sector appear to be stuck in another era. The gender imbalance, particularly at senior levels, is stark. Current figures suggest that just 12.1% of UK fund managers are women, and experts estimate it would take nearly 200 years, or around ten generations, to achieve true gender parity in the UK’s investment management field.

This is more than a statistic. It’s a telling sign of the barriers women face in entering and progressing in financial services, and it’s a challenge that demands action. With evidence that diverse investment teams perform better financially and meet client needs more effectively, the current gender gap represents not only a social issue but a missed economic opportunity.

The problem is multi-layered. For many young women, a career in financial services is simply “not on the radar”. A recent survey by Scottish Financial Enterprise found that nearly 60% of 16-24-year-olds were unlikely to consider a job in this field. Additionally, almost a quarter of Scots believe that the sector is neither attractive nor secure for young people. The perception of financial services as an elitist, white, male-dominated sector deters potential talent from even considering it as a viable path, despite being an outdated misconception.

Future Asset, part of the not-for profit Didasko Education Company, is working to tackle this issue head-on. Based in Scotland, Future Asset aims to change the face of financial services by encouraging young women to explore the field through educational events and competitions. Launched in 2020, the Growing Future Assets Competition introduces teams of young women to the fundamentals of investment by challenging them to research, analyse, and pitch a company to a panel of investment professionals. This hands-on approach demystifies investment management, showing the students that financial services can be rewarding, impactful, and, crucially, accessible.

The results of the initiative have been remarkable. So far, over 1,800 young women have participated, with many expressing newfound interest in careers in the investment industry. At Future Asset’s first-ever Careers Insight Day, more than 100 of these competition alumnae gathered to gain first-hand experience at investment firms, attend talks, and learn from female leaders in the industry. This type of real-world exposure is invaluable in helping young women envisage a place for themselves in finance.

The presence – or lack – of female mentors is another significant hurdle. In an industry where women are severely underrepresented in senior roles, young women entering the field often find themselves without female role models or mentors. This absence reinforces the perception that finance is not a field “for them”, making it even harder to bridge the gender gap.

Scotland alone has around 160,000 people working in financial services, but this industry needs to better represent the society it serves. Half of the population has half the talent, and that talent deserves an equal opportunity to shape the future of finance. Increasing gender diversity in the investment industry isn’t just about fairness – it’s about enhancing decision-making. Diverse perspectives lead to more innovative solutions and better outcomes.

If the financial services industry wants to attract the best and brightest, it must shed its outdated image. As Future Asset has shown, by investing time, resources, and encouragement in young women, the sector can unlock a generation of untapped potential. In doing so, it stands to create a more diverse, successful, and forward-thinking financial landscape.

Jen Mair is chair of Future Asset and CEO of Martin Currie