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The Future of Work for Women in Lending

by | Oct 4, 2021

The first banking system was around 2000 BC in Assyria and India, lenders giving grain loans to traders and farmers. At this time, it’s unlikely they held prominent roles in the lending process. Even in more recent times, women have historically held a small percentage of positions in finance or lending. According to ScienceDirect, the finance industry currently has the greatest gender pay gap among executives.

The Economic Times reports that women only hold 11 percent of C suite positions in the investment field. Fortunately, like most other professional fields, the area of finance is increasingly providing new opportunities for women. These changes will ultimately improve the world of finance, and lending, since women often bring different perspectives and new strategies to the table. The following information details the future of work for women in lending.

What are Women Doing in the Field of Lending?

Lending careers often include positions such as loan processor, loan officer, or loan specialist. These professionals might work in specific areas such as commercial, consumer, or mortgage. A loan officer works directly with individuals or a business to help them secure a loan. Lenders work with their clients to offer a variety of financial services that focus on lending. They organize personal or business data, evaluate loan risk, explain conditions and terms of loans, and then monitor loans.

Some studies support the idea that women are often better as loan officers than men. Research shows that women are sometimes more risk-averse than men. This means the loans that women initiate are less likely to become problematic since women are often more conscious when granting loans. The conclusions found in the research mean that women can have an extremely positive impact in finance, particularly lending.

How Will Opportunities Open Up for Women?

Because of the current push for more diversity in the workplace, women will likely have more opportunities in finance and, specifically, lending. The finance industry, however, is currently a male-dominated field. The following are several ways women will continue to see progress in lending.

  • Improve Mentoring – Learning from an experienced professional is one of the best ways to gain inside knowledge in any field. A good education can only get an individual so far. Gaining insight and wisdom from an insider through mentoring is important for women to make gains in lending.
  • Increase Networking – Networking differs from mentoring in that it is an equal exchange. As women continue to support one another and grow in lending, this will help build an entire system of knowledgeable and capable lending professionals.
  • Create Balance – Since women are still often the primary caregivers in the home, creating great work-life balance options is crucial to helping women succeed in the lending industry.

How Will the Lending Industry Change?

As women continue to build careers in lending in greater numbers, these positions will increasingly need to offer greater flexibility. Fortunately, the lending industry is heading in a compatible direction with bringing more women into the field. The future of work for women in lending will likely include the following changes.

  • Remote Options – Because of the pandemic, people in many professions began working remotely. Loan officer positions will increasingly include remote work or some type of hybrid work. As more women enter the lending field, working remotely will likely become the standard.
  • Greater Automation – Investment and lending positions are increasingly compatible with remote work situations because of advancing technology. Technology is affecting both the quality and quantity of work in the loan industry. By implementing a mortgage support automation platform, a loan officer can easily maintain compliance standards and consistent workflows while improving customer experience.
  • Artificial Intelligence – Artificial intelligence can increase the speed of loan assessment, while robotic processes can improve accuracy and reduce errors. AI can also help capture new leads.

Remote working options, greater automation, and the increase of artificial intelligence will help pave the way for more women to enter and succeed in the lending industry.

How Can Capacity Help with These Changes?

Capacity provides support automation that uses the most advanced artificial intelligence to simplify repetitive tasks and build solutions for busy teams. Loan officers spend extensive time gathering, organizing, and analyzing data in the lending industry. Capacity can automate and streamline tasks, connect data and apps into a single system, and store and index internal policies and guidelines, all while providing 24/7 support.