A new women CEO peer group co-hosted by ABA and Bank on Women aims to shine a spotlight on the lack of women in leadership roles in banking.
By Cathy Nestrick
More than 50 percent of all U.S. bank employees are women, yet just 7.5 percent of banks are led by a woman CEO. The banking industry lags behind Fortune 500 companies, where 10.6 percent of all CEOs are women. While women earn more college degrees than men and rate higher on leadership competencies, just 32 percent of bank officers (vice presidents and higher) are women.
Meet members of a new women CEO peer group on March 18 at the Women and Allies Forum held as part of ABA’s Washington Summit. For more information about the work of this group, please reach out to the author at [email protected].
A new women CEO peer group, hosted by American Bankers Association and Bank on Women, aims to shine a spotlight on the lack of women in leadership roles in banking. Having more women in board director, CEO and other leadership roles is a win/win for the industry because too often, we are not advancing the most qualified candidates. We need to re-imagine leadership, broaden our pipelines and make more bets on women who are clearly capable, ambitious and ready for more responsibility.
Having women on leadership teams, especially when women are at the helm, often translates into improved innovation, resilience and financial performance. Their contributions make banking a more competitive and innovative industry. Inviting more women onto bank boards is also a winning solution. Although the share of women on bank boards has increased over time, the average bank board is about 20 percent female.
Research by the Federal Reserve and Ann Owen shows that under the right conditions, more women on bank boards can increase revenue/expense ratio, return on assets, Sharpe Ratio (a risk-adjusted measure of return on assets) and stock-price growth. Additionally, more women on bank boards is associated with higher regulatory compliance — which is especially crucial during financial crises when high-quality problem-solving from a board is invaluable.
One benefit of the women CEO peer group is to highlight the approximate 350 women bank CEOs throughout the country who serve as role models for people not accustomed to seeing women in leadership roles. Seeing more women in leadership roles is a powerful way to rewire thinking and demonstrate that women are effective leaders. Women also need to see that they, too, have opportunities for leadership roles.
Six women are steering the women CEO peer group as members of the leadership team. Leadership team member Mary Kay Bates, CEO of Bank Midwest says, “If you see it, you can be it. When younger women see someone who mirrors their aspirations, it is transformative because suddenly that younger woman now sees that her ambitions are possible.”
Robie Suggs, CEO of Warsaw Federal Savings Bank and women CEO peer group leadership team member, adds, “As my career was developing, there were so few women, especially Black women, in leadership roles in banking. Despite the lack of role models, I was determined to succeed but the journey was challenging and at times, lonely. Representation matters because it serves as a beacon for others.”
In addition to workforce development benefits, having more women in leadership can also enhance and grow relationships with customers. Women hold 32 percent of the world’s wealth, and this number is growing year over year. Including more women in the upper echelons of banking roles will position banks to better understand and address the needs of this growing market segment.
Lisa Oliver, President, CEO, and chair of the board of The Cooperative Bank of Cape Cod and women CEO peer group leadership team member, says, “I value everyone on my team, regardless of gender, and I have also seen that sometimes, women bankers have a greater understanding of women customers’ needs, preferences and challenges. We need a diverse leadership team to forge relationships with a diverse customer base.”
Jenn Docherty, CEO of Bank on Women, which co-sponsors the women CEO peer group adds, “I am so inspired by the work of this group of dedicated CEOs. Many of our conversations are centered around improving the industry and providing opportunities for emerging leaders. They are championing change and developing innovative strategies to transform the industry.”
Cathy Nestrick is VP for women’s leadership and diversity, equity and inclusion at ABA, and the co-host of the Parity Podcast.
Join ABA Women and Allies with Bank on Women for two live virtual events this month: 3 p.m. March 7 for a fireside chat with Anna Astvatsaturian Turcotte, an author and human rights activist, who is also VP of compliance, Maine Community Bank, as part of events leading to International Women’s Day, celebrated on March 8; and 2 p.m. March 28 for a conversation with Evelyn Fennell Smalls, president and CEO of United Bank of Philadelphia, a minority-owned and controlled bank, who is also a former ABA board member and conference speaker.
