Women in banks: Only 8.1% are female bosses – what happens next?

Women in banks: Only 8.1% are female bosses – what happens next?

There is blatant male dominance in the boardrooms of savings banks in Germany! Despite a proportion of women of over 50 percent among employees, a current study by the analysis company Barkow Consulting shows that only 8.1 percent of board members are female. Compared to the previous year, this is only a measly increase of 0.7 percent. That's just 69 women among around 350 savings banks - and only 16 of them are CEOs!

The situation is even more devastating at the Volks- and Raiffeisenbanken: Here the proportion of women in management positions is a meager 5.1 percent at the end of 2023! While major banks like Commerzbank with Bettina Orlopp at the top are scoring points, things look bleak in Bremen and the surrounding area. Although Sparkasse Bremen has a female addition to the board, Sonja Kastin, the remaining positions are firmly in male hands. The situation is similar at the regional savings banks and Volksbanks in the region, where the boards of directors are all made up of men.

The future of women in finance

The unequal distribution could become problematic for banks, as the lack of female representation in management levels could have a negative impact on the recruitment of young talent and pose a significant reputational risk. The savings banks are aware of this challenge and have set themselves the goal of filling every tenth board position with a woman by 2027. In addition, at least 30 percent of management levels below the board of directors should be female by 2035 - an increase from the current 5 percent!

Another interesting detail: the names of the board members! Thomas and Michael lead the management ranks with an incredible 83 nominations. As banks work on diversity, it remains to be seen whether these initiatives will actually bring about the desired change.