IN PARTNERSHIP WITH

Hi, fintech fam! 💜

Yesterday was an incredible milestone for our Fintech Is Femme community as we were featured on the Nasdaq tower in Times Square for the second consecutive year!

I witness every day the immense dedication of all our members in pursuing their career aspirations, and occasions like this, where our community is showcased on a renowned billboard, are moments when we should pause and feel an immense sense of pride in our accomplishments.

I want to extend my heartfelt gratitude to all our readers, supporters, attendees of our events, and partners who have consistently demonstrated that investing in women yields the greatest return on investment, without fail.

Now, let's dive into the latest news!

SPONSORED BY A.TEAM

The New York Times published a “Whos Who” list in AI last year.

The list didn’t include a single woman. 

My friends at A.Team (they’ve built best-in-class apps for eToro, Ledger, and more!) are stepping in and giving women in AI their well-deserved flowers. 

Please join us on March 27th at the NYC Clubhouse and learn about the incredible women shaping AI. If you can’t join in person, plan to attend virtually! 

Learn about the latest in AI from women who have worked at companies like Microsoft, Salesforce, ServiceNow, and more. 

Let’s use this opportunity to showcase the expertise of women in AI who are here and have always been innovators in this space. 

AI is a critical development in the fintech space, and it’s imperative that we support our fellow sisters, especially women in AI who are experiencing the same erasure as women in fintech.

Let’s come together and harness the power of our communities. 

#TRENDING

What’s Up In Fintech

Every Thursday, I share news stories and trending pieces I follow. Think of it as a way to quickly find the most important news in the fintech world.

#1 Fintech Firms Urged to Prioritize Women Customers for Long-Term Success

Catering fintech products to women isn't just a nice-to-have—it's a business imperative that will propel your company ahead of the competition.

Fresh research from the International Finance Corporation (IFC) dives into this, showing how analyzing gender differences can give fintech firms a leg up in tapping into the $31 trillion female market and boosting financial inclusion for women overall.

Let's break it down a bit.

Why It Matters

Honestly, there hasn't been much research into whether digital financial services are actually helping women gain better access to financial tools worldwide.

Personally, I've been digging deep into the stories of female-founded fintech companies and leaders who are out there every day, making strides in reshaping the financial system for women through fintech.

Watch for my upcoming book, Fintech Feminists, where I'll share these inspiring stories.

But back to the IFC report—what's interesting is that having leaders who understand the value of serving women, both socially and commercially, is key for fintech firms that intentionally target women.

If the top brass truly believes in financially including women, it will set the tone for the whole company.

According to the survey, about 58% of firms say their focus on women is driven by leaders who get why it's so crucial to include women in financial services.

It's not just about doing good; it's also about recognizing the business sense in tapping into the female market.

The report also outlined a few key findings that show catering fintech products to women can benefit companies quite a bit.

To understand the trade-off between spending more to get women on board and the value they bring, this study looked at how the economics played out for women versus men, especially in business lending.

Sure, it might cost a bit more to acquire female clients, but about 63% of fintech companies that specifically tailor their products and services for women end up with customers who stick around longer, bringing in more value over their lifetime.

It's been shown before that women tend to be loyal customers, stick around longer, and are less likely to default compared to men.

So, even though it might take a bit more effort and cash to get them on board initially, in the long run, it's worth it because they bring in more value.

Now, let's talk about how fintech companies are actually reaching out to women.

You'd think more companies would be targeting them specifically, right?

But get this: less than a third of these firms are tailoring their products and services for women. They're collecting data on gender but not doing much with it to reach out to more women or make their products more appealing to them.

Firms in markets with bigger economic gender gaps are more likely to tailor their stuff for women, probably because they see the need more clearly.

But there's still a lot of room for improvement in how fintech companies target and serve women customers.

Some fintech firms are doing a great job using data to understand women better and design products that fit their needs.

For example, Indonesian neobank Koinworks uses data analytics to determine what women-owned businesses need and how to keep them coming back.

Another interesting finding, as noted, is that women default less on loans than men.

Fintech firms have noticed this, too, with many reporting lower rates of non-performing loans for their female customers. It's like women are more careful with their money or something.

While many fintech firms see the value in targeting women, they often need a push from investors to make it happen.

Investors can play a big role in encouraging these companies to focus on women, whether by setting targets for gender balance or providing financial support for initiatives aimed at women.

Looking ahead, there's a ton of potential for the fintech industry to do more to serve women.

Depending on the market and the company's stage, different strategies make a difference, like focusing on underserved groups of women or providing technical support to help companies scale up.

Here are a few key support areas cited by fintech firms to enable serving women more strategically:

• Knowledge & Evidence: Research on women’s needs and pain points, case studies of success stories, and evidence of business cases.

• Capital: Financing and funding, de-risking instruments.

• Business Model Customization: Through partnerships and product design/delivery support.

• Internal Capacity/Culture: Gender expertise, management commitment, and internal incentive structures.

Ultimately —it's all about recognizing the opportunity and seizing it.

The full report, Her Fintech Edge: Market Insights for Inclusive Growth, offers insights on fintech firms' perceptions and practices in serving women's customer segments. Download your copy here.

#2 How The Future Of TikTok May Impact A Generation's Financial Literacy

The rise of personal finance education on TikTok plays an instrumental role in expanding fintech companies' products and services to a broader audience, particularly women, Gen Z, and many marginalized communities.

Financial education gained newfound cultural relevance in 2020, primarily due to pandemic-fueled lockdowns spurring increased engagement in personal finance content on TikTok. This carried into the world of fintech, with 79% of users looking for education around starting an emergency fund, improving credit scores, and creating a savings habit from their fintech applications, according to Plaid's fintech effect report.

In response to this demand, many companies like SoFi and Step began leveraging TikTok to meet users where they are by partnering with influencers, hosting events, and offering personalized finance tips via short-form videos.

However, the potential ban of TikTok in the U.S. may leave many communities looking for financial education and tools elsewhere, and fintech industry leaders would be wise to oblige.

Community Values

Until personal finance content exploded with billions of views on TikTok, the average person had limited access to financial advice due to account minimums or a lack of knowledge. However, technology has enabled anyone with a smartphone to access the same level of financial guidance that was once limited to the wealthy and well-informed.

The most notable spike in interest has come from those traditionally underserved by financial services.

Personal finance creators like Vivian Tu (@yourrichbff) share with her 3.5 million followers, whom she says include women, people of color, and marginalized communities, the importance of financial literacy.

A survey commissioned by Forbes Advisor and conducted by market research company Prolific found that 78% of millennials and Gen Z believe they have more access to financial advice now, thanks to social media like TikTok, than they would have as part of previous generations because of their identities, such as race, gender, or income.

TikTok creators have leveraged the platform to build businesses and spark movements toward financial inclusion and knowledge sharing to cater to these untapped demographics.

For example, Tori Dunlap (@herfirst100k), the creator and founder of Her First $100K, a financial education company, has garnered an audience of 2.3 million on TikTok as she established the "financial feminist" movement to inspire women to own their financial independence as the greatest tool for fighting patriarchal barriers.

Or Lea Landaverde (@latinawealthactivist) uses her platform of over 80,000 followers to break cycles of generational wealth gaps for her community through financial education, a critical need given the total economic output of U.S. Latinos was $2.7 trillion in 2019, making U.S. Latinos the equivalent of the seventh-largest economy in the world.

These TikTok creators have turned value-based educational content into businesses while shifting a diverse demographic of fintech-curious consumers into customers. This represents a market opportunity for fintech companies to leverage financial education content to bring the next generation of wealth builders, Millennials and Gen Z, representing 47% of the U.S. population, into their user bases.

By doing so, fintech industry leaders can establish themselves and their companies as financial education influencers to garner success similar to that of creators such as Tu, Dunlap and Landaverde.

Founders Turned Educators

As a creator, I have seen the potential for fintech companies to leverage educational content to build trust and community in their customer base, yet only some have stepped up.

A couple early-stage fintech founders have quickly discovered the potential of content creation on TikTok as a critical business strategy. This cost-effective approach offers a viable option for companies with limited marketing budgets, as it can be practically free compared to the cost of traditional methods used by larger, established competitors.

One of the best examples on my "For You" page is startup Alinea, an investing platform boasting 225,000 app downloads with a user base of 80% female, 72% first-time investors, and 60% Gen Z.

Co-founders Anam Lakhani and Eve Halimi (@anamandeve) openly share their stories on TikTok, including how they grew up never talking, let alone learning, about investing as Gen Z women and children of immigrants. And they're using TikTok to have conversations directly with their customers, engaging with at least 15-20 people daily.

Vrinda Gupta, a former Visa executive and current fintech founder, is also utilizing TikTok to empower her target audience of women by sharing her personal experiences with finance.

After being denied the Chase Sapphire credit card, which she was involved in developing, Gupta founded Sequin Finance (@sequinfinance). Gupta creates on TikTok to market her company’s debit card while providing educational content on increasing credit scores.

Fintech companies, founders, and personal finance creators have been doing remarkable work on TikTok to fill the financial education gap America has faced for years. More organizations still need to join the cause, especially since our goal as a fintech industry is to promote financial education and access.

Regardless of what’s in store for the future of TikTok in the U.S., the platform has already made its mark on the fintech industry. TikTok has made it easier than ever for users to access educational content regarding financial well-being, creating an opportunity for a new generation of fintech creators to share their knowledge and establish a wide range of business models.

This story first appeared on my Forbes contributor page in March 2023 when discussions about the TikTok ban began. The topic is even more relevant today.

#3 VC Needs to Invest Dollars in Diversity

Almost all the trailblazers within our fintech ecosystem share a critical commonality: they've successfully secured venture capital (VC) funding.

VC is the key to transforming audacious technology-based ideas into world-changing institutions that reshape our financial landscape.

However, a lack of diversity is holding back fintech’s true potential.

The numbers speak for themselves: According to data from McKinsey & Company, teams with different genders and ethnicities can yield a remarkable 30% boost in multiples on invested capital (MOIC) compared to more homogenous groups. MOIC compares an investment’s exit value to its initial investment amount.

Yet, VC-backed start-ups are still homogenous. According to data from Diversity VC, founding teams receiving VC financing are:

• 89.3% men

• 71.6% white

• 35.3% based in Silicon Valley

• 13.7% Ivy League-educated

This lack of diversity represents a missed opportunity.

World Economic Forum research shows that companies with above-average diversity scores drive 45% of average revenue from innovation. In comparison, companies with below-average diversity scores drive only 26%.

Why It Matters

In a recent article, I wrote as part of my friends at Rise by Barclay’s Ecosystem Perspectives, I dive into the state of global VC funding and share my advice on investing in diverse founders and senior leadership for a more innovative fintech industry that serves people and profits.

Check out the full article, here.

_{MARK YOUR CALENDARS}

Join us every Thursday to stay updated on the weekly top fintech events! These events are a great way to network, learn, and connect with our fintech community. Let's fill our calendars with these awesome events - I would love to see you there! If you have an event to share, please inform me!

_{MONDAY 4/8}

[NYC] Fintech Is Femme Leadership Summit

Seven years ago, when I started my career as a finance and tech journalist, I dreamed of the day I could put together an industry event with an all-female-speaker faculty.

But not just any event — a true summit that placed women on stage based on their expertise as the innovators leading the digital finance revolution.

Many many community gatherings later, Fintech Is Femme has become the go-to place for women in fintech to network and gain new opportunities.

We need to remember that we do not have to take on challenges alone and can support each other to achieve our goals.

Share with your sisters. It’s how we make progress.

My past events are proof of this—filled with women in various stages of their fintech careers, from those just getting started to established CEOs and founders raising funding rounds.

Fintech Is Femme exists because of the leadership that is the incredible women on our agenda, like Liza Landsman, CEO of Stash; Elise Brown, CMO & Partner at Anthemis; Cleve Mesidor, Executive Director of the Blockchain Foundation; and Margaret Hartigan, Founder & CEO of Marstone.

And if you’re curious what type of value comes out of the Summit, here’s the recap from our speakers, last year.

1. When tough times come, flip the narrative, embrace intersectionality and use it as a tool to gain empathy and understand complexity. It gives us courage and confidence to break barriers and succeed. (Lule Demmissie, CEO, eToro US)

2. There is no success without being yourself. Embrace your individuality and authenticity to achieve lasting success. Don't conform to expectations; be true to yourself and unlock your potential. (Dani Fava, former Head of Innovation, Envestnet)

3. Work-life balance isn't real, and family involvement is essential. Use your unique experience to make your mark in fintech and prove that curiosity and a desire for both personal and professional success can lead to the life you've always dreamed of. (Sarah Kirshbaum Levy, CEO, Betterment)

4. Women's unity and support is a powerful force, yet many of us remain stuck in unfulfilling circumstances. There are too many women still stuck in marriages that do not serve us, jobs that do not fulfill us, and businesses that never get off the ground because of money. Let's unite, use our collective power to help unlock our individual power, and realize that nothing bad happens when women have more money. (Sallie Krawcheck, Founder & CEO, Ellevest)

This event is designed for you. I’ve curated this event intentionally to immediately change your career as soon as you leave the summit. Join us on April 8th for an unforgettable career experience.

(Check out this letter I wrote if you need help asking your boss to expense it!)

_FINTUNES

🎵 FLO - Walk Like This

You know I love a girl group! While browsing YouTube for new music, I stumbled upon FLO, a trio of girls who I instantly want to be best friends with. This song is enjoyable, feminine, and the ideal way to add some pep to your walk or commute! Make sure to include it in your playlists, you'll find yourself playing it on repeat just like me.

That’s all for now! Stay safe, everyone. Hug your loved ones. See you Sunday!

Love,

Nicole

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