The odd case of female broker scarcity

Comparatively weak representation of women in some financial roles is a confounding problem that needs constant attention, but the rewards of finding solutions are key to the industry's future

THERE IS no way to mince it – the dial appears stuck when it comes to female representation in certain parts of the finance sector. This is underscored by the latest MFAA data, which shows that women brokers now represent 25.4% of the industry, the lowest level on record – lower even than during the panicky early days of COVID-19. While the number of female brokers has increased a fraction every six months since early 2020, the higher number of male brokers employed in the industry over recent years has pushed down the overall proportion of women.

MFAA data shows that the gender split in broker recruitment has been at roughly 70–30 in favour of males since records began in 2016, with fluctuations of no more than three percentage points on either side in any given year. Male and female numbers often move in tandem, rising and falling as the market fluctuates. “Females are joining the mortgage and finance broking industry as brokers, but not at the same rate as males, and we are also seeing women leave the industry at a greater rate than men,” says MFAA chief executive Anja Pannek.

Companies and organisations have a range of measures that aim to help women stick with finance. “Thinktank remains committed to supporting the careers of all of our employees through a broad range of mentoring, training and development opportunities,” says Claire Byrne, a senior relationship manager in Thinktank’s property finance team. “We're currently focusing on building a leadership development program as a pathway for those looking to further their careers, and to continue our commitment to equal representation in management."

The situation is certainly better for female representation in finance jobs outside mortgage broking. According to the Workplace Gender Equality Agency, across the financial and insurance services sector, 53% of employees are female and 42% of management positions are held by females. Banks and non-banks have much higher female representation than the one-in-four benchmark recorded for mortgage brokers. At OnDeck Australia, 38% of roles are held by women, up from 28% in mid-2022, with women filling 40% of leadership jobs. NAB has 46% female representation overall across the group and 37% in senior management. Thinktank currently has 48% female staff and 41% in management, up from 43% and 29% respectively in 2019.

“It's crucial that aggregators increase organisational awareness of these barriers and consult the women in their own networks to understand the challenges women face and collaborate on interventions and solutions.” This ties in with the issue of unconscious bias, which is consistently considered the primary barrier for women in the mortgage and finance broking industry, limiting greater gender diversity. “The finance sector as a whole needs to be seen to be valuing women in workplace teams,” says Charlene Batson, chief operating officer at OnDeck. “This means providing clear opportunities for career progression, encouraging women into leadership roles, and allowing women to have opportunities to be the public face of a finance business.”

For 31 years, Mortgage Choice has been at the forefront of Australia’s mortgage broking industry, and under its ownership by REA Group, a leading global digital business specialising in property, this doesn’t change. As a network of close to 1,000 brokers and more than 750 franchises nationally, it remains one of Australia’s most trusted and recognised brands, with over 95% brand confidence among consumers.¹ We’re passionate about helping people afford the things that are important to them, whether that’s buying a home or a new car or starting a business. ¹ 2021 Honeycomb REA Service Offering research

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Thinktank is an independent non-bank financial institution specialising in the provision of commercial-property mortgage finance of up to $4m and residential-property mortgage finance of up to $2m in the Australian self-employed, PAYG and SME sectors. Since 2006, Thinktank has provided over $6.5bn worth of commercial, residential and SMSF lending solutions, which have enabled thousands of borrowers to achieve their goals of acquisition, refinancing and equity release. Thinktank offers a range of lending solutions, including Full Doc, Mid Doc (Alternate Income Verification), Quick Doc and SMSF loans.

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This is despite efforts by many firms to support women, and the pandemic's huge silver lining of flexible working becoming mainstream. Now, a less certain economy on the back of a possible global recession has the potential to make conditions even more difficult for increasing the proportion of women working to their full potential in the financial sector. Yet the trends present a complicated picture: proportions of women recruited have been steady for years, but lower retention rates continually eat into the stream of new female mortgage brokers.

Charlene Batson

OnDeck Australia

Industry experts

Charlene Batson has served as OnDeck Australia's head of business development since August 2015 and chief operations officer since 2022. She has over 15 years of experience in the financial services industry in Europe, the Middle East and Australia. Previously, Batson was director of transaction banking solutions at Commonwealth Bank, where she worked with many types of corporate and financial institutions to advise them on working capital solutions and grow the institutional business. She holds a BA (Hons) in Business Studies from the University of the West of England and an International Cash Management Certificate from the Association of Corporate Treasurers.

OnDeck Australia

Charlene Batson

OnDeck Australia

Sally Chadwick

REA Group/Mortgage Choice

Industry experts

OnDeck Australia

Charlene Batson

Claire Byrne is an industry award-winning senior relationship manager (SRM) who has been at Thinktank since 2014. Starting as an assistant manager, Byrne progressed through a number of roles at Thinktank, including those of credit manager and relationship manager, to her current position as SRM. She holds a Bachelor's degree in Business & Commerce – Property from Western Sydney University and has two children, aged seven and 11.

Thinktank

Claire Byrne

With the reappearance of industry culture as a factor holding women back, it's clear that many women in finance feel that the industry is not inclusive of all. “Financial services and mortgage broking are decades-old boys' clubs, and while we’ve certainly seen a great deal of progress, the industry still has a way to go in creating an inclusive and supportive culture that celebrates diversity in all its forms,” says Sally Chadwick, executive manager corporate communications at Mortgage Choice. Weak retention of female mortgage brokers is confounding given the more encouraging trends seen at the entry points to a broking career. Large aggregators such as Mortgage Choice report that in 2022 more than half of new broker recruits identified as female. This is not an isolated case; other companies report that new female recruits are increasing at twice the pace of males. In the wider financial industry, banks such as NAB have policies to support female recruitment, with a 50/50 male to female graduate intake.

Charlene Batson

OnDeck Australia

Industry experts

“Financial services and mortgage broking are decades-old boys' clubs, and while we’ve certainly seen a great deal of progress, the industry still has a way to go in creating an inclusive and supportive culture”

Sally Chadwick, Mortgage Choice

The MFAA's Opportunities for Women research is the go-to resource for insights into the barriers faced by women in finance and how they are evolving. It is perhaps telling that one of the top three barriers cited in the latest annual survey was "an industry culture that is not inclusive of women", given that this factor had dropped out of the rankings in 2021. This indicates that despite some positive momentum for women during the disruption caused by the pandemic, the effect may have faded as some companies possibly hew back to pre-pandemic ways of doing business.

Even so, the fact that new female intakes averaging 50% or more doesn’t translate to equivalent levels as careers progress is jarring. It suggests the pattern of attrition for women is the same regardless of whether they start out as a broker or in the broader financial services sector – the bucket is emptying slightly faster than it is being filled at any given time. Whether the starting point is 30% representation or 50% representation, the empirical evidence shows a balance of factors skewing towards too many reasons for women to depart the finance sector. “Encouraging women to join the industry as brokers or business owners is one thing, but we also need to focus on creating a positive experience as women build their broking careers,” Chadwick says.

OnDeck Australia

Charlene Batson

Claire Byrne

Thinktank

Claire Byrne

Thinktank

Claire Byrne

Barry Saoud joined Pepper Money in July 2021 as general manager, mortgages and commercial lending and is responsible for its strategic direction and operating performance across product, credit and settlements sales functions for Australia and New Zealand mortgages, commercial loans, personal loans and direct sales. With over two decades’ experience in financial services, Saoud has worked in numerous areas across legal, company secretary, sales and product management roles with the likes of Aussie Home Loans, GE Capital, HSBC and Norton Rose Fulbright. Saoud is a passionate leader with proven ability to grow businesses and exceed targets through innovative strategy and effective execution.

Pepper Money

Barry Saoud

Peter Vala has extensive experience in residential, commercial and development finance. He specialises in strategic implementation, leads the Thinktank relationship manager team, and works closely with brokers and aggregators.

Thinktank

Peter Vala

John Mohnacheff is Liberty's ebullient and charismatic group sales manager. With over 30 years of insurance, banking and finance experience, he is committed to improving the sales habits and disciplines of the entire group sales team. Before joining Liberty, Mohnacheff held executive roles at Westpac and Bank of Melbourne. He has a Bachelor of Business and a Marketing Master’s from the University of New England, and a Postgraduate Diploma in Organisational Behaviour from the University of NSW.

Liberty

John Mohnacheff

“The absence of females in leadership roles can create barriers for women entering the finance industry as there is no one to aspire and relate to”

Alexandra Taylor, National Australia Bank

What drives weak retention of females in the industry?

Programs to support women to stay in finance

What drives weak retention of females in the industry?

Programs to support women to stay in finance

Published 29 May 2023

Claire Byrne

Thinktank

Anja Pannek

MFAA

Alexandra Taylor

National Australia Bank

Sally Chadwick leads the Corporate Communications, Events and Franchise Marketing team at REA Group Financial Services and Mortgage Choice. With close to 20 years working in corporate communications, predominantly in financial services, Chadwick has led communications functions at some of Australia’s largest organisations, including CommBank, and was also the general manager of a specialist editorial agency. She is a passionate advocate for the power of great communications and increasing the representation of women in the broking industry.

REA Group/Mortgage Choice

Sally Chadwick

Anja Pannek is CEO of the Mortgage & Finance Association of Australia. She is an experienced leader in the financial services sector and has a proven track record of leading successful businesses within the third party channel, including aggregator businesses and mortgage distribution for major financial services firms. Pannek thrives in complex and uncertain environments, and through her vast experience in financial services she has an exceptionally strong understanding of the challenges and opportunities facing the Australian mortgage and finance broking industry.

MFAA

Anja Pannek

Alex Taylor was appointed NAB's chief people officer, business, private and personal banking, in May 2022. She has over 20 years of experience in financial services. At NAB, Taylor is responsible for leading development and delivery of the bank's people and culture strategy and for creating and executing high-impact HR solutions. Prior to joining NAB, she spent 18 years at Citi, where she held finance and COO roles in the Corporate and Investment Banking team before transitioning to HR. Taylor has a Bachelor of Business, Accounting and Finance from the University of Technology Sydney and a CA from Chartered Accountants Australia and New Zealand.

National Australia Bank

Alexandra Taylor

The Mortgage & Finance Association of Australia is the leading professional association for the mortgage and finance broking industry, with over 14,500 members. MFAA members include mortgage and finance brokers, aggregators, lenders, mortgage managers, mortgage insurers and other suppliers to the mortgage broking industry. Its purpose is to elevate the mortgage and finance broking profession, driving innovation and positive financial outcomes for Australians.

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Anja Pannek, MFAA

“Females are joining the mortgage and finance broking industry as brokers, but not at the same rate as males, and we are also seeing women leave the industry at a greater rate than men”

OnDeck structures its KPIs and success metrics in a way that appeals to and rewards women rather than creating black-and-white sales targets. NAB's 1500 Degrees Program, named after the melting point of glass, is designed to build and accelerate a pipeline of female talent through learning, networks, sponsorship and development to support women progressing into more senior roles. “There are currently 80 women participating, and the program is receiving positive feedback from all involved,” says NAB chief people officer for business, private and personal banking Alexandra Taylor.

Mortgage Choice supports the women in its network through its Aspire program, which delivers a range of initiatives, from events to learning and media training. “As well as providing personal and professional development opportunities, Aspire is also helping to build a supportive community of women across our broker network,” Chadwick says. The MFAA consistently spotlights the issue and, through its Opportunities for Women initiative, brings people from across the industry together to try to change the situation. “Industry leaders are increasingly seen to be promoting diversity and inclusion as a strategic priority,” says Pannek. “We also host a Diversity and Inclusion hub – a valuable online source of learning resources, research, videos, presentations and other information aimed at helping us all contribute to a more diverse broking industry.” There is no shortage of passion and commitment when it comes to promoting and supporting women in finance at an institutional level – which makes it all the more concerning, for female mortgage brokers at least, that these programs have not made more headway in raising participation levels. Nobody likes running to stand still. “As an industry we must continue to expand pathways and create environments where females feel confident and supported to explore the diverse range of opportunities and roles that are available,” says Byrne. “The good news is great progress has been made, and continues to be made, in this area to advocate for equal representation, remuneration and advancement.”

The bottom line for women

The negative effects for women that such programs are designed to counter can be measured in monetary terms via gender gaps in pay and the loan amounts top brokers are writing. The tail end of the pandemic was a positive one in terms of reducing the gender pay gap for women in financial and insurance services in Australia. From May 2021 to May 2022, the gap shrank by over five percentage points. In the space of a year, women in the sector went from earning a quarter less than their male counterparts to only a fifth less. But in a worrying parallel to the stubbornly low proportion of female brokers in recent years, the dial for pay appears to have hit an impasse at current levels, with the latest data showing a small widening in the sector's gender pay gap to 19.1% for the six months to November 2022. Economic growth slowed significantly during the period as the global outlook took a turn for the worse and financial institutions started to batten down the hatches.

Lower average pay for women has been shown to be partly due to less representation in managerial roles. Is it also possible that as more workers started heading back into the office, women began to miss out on or forgo promotions due to commitments at home that could not be as easily juggled with a daily commute or more rigid working hours? “We know that women continue to make an outsized contribution when it comes to taking care of homes and families,” says Batson.

ALEXANDRA TAYLOR, NATIONAL AUSTRALIA BANK

“The absence of females in leadership roles can create barriers for women entering the finance industry as there is no one to aspire and relate to”

There are also fewer women populating the top of the annual total lending tables, suggesting that it's more difficult for female brokers to develop a robust customer base and cut megadeals than it is for men. A cursory glance at the yearly Top 100 Brokers lists published by ABW's sister magazine Mortgage Professional Australia reveals this to be the case. Ranked by total value of residential loans written from July 2021 to June 2022, the top woman comes in at number 14 with under half the total loan book written by the number one broker. In last year's Top 100 Brokers, only 11 were female.

Taking stock

OnDeck Australia is a leading online lender that focuses on Australia’s small business community. As OnDeck only provides small business loans, it is an expert in an area that has been underserved by the banking sector for too long. Importantly, OnDeck offers a skilled and experienced team, who have been hand-selected for their understanding of the needs of small enterprises.

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The year before that, the top woman ranked 10th, and there were 14 females in the list, while in 2020 the highest-ranked female was eighth, with 11 females in the overall list – the pattern of underrepresentation at the top of the profession is consistent. While not everyone – male or female – necessarily aims to be in the Top 100, the lack of female brokers writing more than $100m in residential loans each year suggests that though many get into the industry for a time, too large a number struggle to maintain enough momentum. Scarcity of women at the top of the field results in a negative feedback loop of fewer role models for the upcoming generation of women in finance.

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“The absence of females in leadership roles can create barriers for women entering the finance industry as there is no one to aspire and relate to,” says Taylor. “It can be harder to visualise and have confidence that a career in finance is something that's achievable.” One factor that research has consistently shown affects the ability of people with children to participate fully in the workforce is the availability of their partners to share the domestic workload. The dial can be moved on this issue by companies including partners in parental leave programs, for example. “It’s critical to provide a workplace that is not just flexible but also promotes work-life balance – and this includes encouraging men to take parental leave,” says Batson. NAB has recently extended 16 weeks of paid parental leave to eligible parents regardless of gender. This initiative helps reduce the challenges some women have when re-entering the workforce in customer-facing roles.

A push for a more inclusive industry

“Sometimes you can’t clock off at six o’clock or work a four-day week in those roles due to customer expectations and demands,” Taylor says. “These factors can make it more challenging for women returning to the workforce after parental leave, and this can mean we lose that capability out of those teams and those roles.” Taking a note from the pandemic playbook, businesses should consider how technology can help in this area.

NAB Broker Distribution is dedicated to helping brokers deliver the best customer outcomes, supported by a national network of experienced BDMs and dedicated support through every stage of a customer’s home lending experience. As the bank behind brokers, NAB will continue to invest in the broker channel and uncover the next innovation to make things simpler and easier for its broker partners and customers.

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“We need to look at how we can build the benefits of flexibility into customer-facing roles in the same way as we are doing for non-customer-facing roles,” Taylor says. The big four bank aims to achieve a 40–60% gender balance at every level of its business by 2025. “Our approach has never been about making up the numbers – it’s about finding the right people for the right roles and making sure all colleagues, including our female talent, have access to the resources and opportunities they need to reach their full potential. "We know that there is more that we can do, and we’re continuing to sharpen and develop these initiatives to push the needle,” Taylor says. Supportive leadership and flexibility add up to real gains for companies in retaining talent over the long term. Byrne says, “[Flexible options] have been a core reason why many women, including me, have been able to raise a family whilst continuing to pursue a professional career. A supportive employer that understands the importance of a work-life balance can make the world of difference.”

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Sally Chadwick

REA Group/ Mortgage Choice

Alexandra Taylor

National Australia Bank

Anja Pannek

MFAA

Sally Chadwick leads the Corporate Communications, Events and Franchise Marketing team at REA Group Financial Services and Mortgage Choice. With close to 20 years working in corporate communications, predominantly in financial services, Chadwick has led communications functions at some of Australia’s largest organisations, including CBA, and was also the general manager of a specialist editorial agency. She is a passionate advocate for the power of great communications and increasing the representation of women in the broking industry.

REA Group/Mortgage Choice

Sally Chadwick

MFAA

Anja Pannek

Alex Taylor was appointed NAB's chief people officer, business, private and personal banking in May 2022. She has over 20 years of experience in financial services. At NAB, Taylor is responsible for leading development and delivery of the bank's people and culture strategy and for creating and executing high-impact HR solutions. Prior to joining NAB, she spent 18 years at Citi, where she held finance and COO roles in the Corporate and Investment Banking team before transitioning to HR. Taylor has a Bachelor of Business, Accounting and Finance from the University of Technology Sydney and a CA from Chartered Accountants Australia and New Zealand.

National Australia Bank

Alexandra Taylor

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Sally Chadwick

REA Group/ Mortgage Choice

Anja Pannek

MFAA

Alexandra Taylor

National Australia Bank

Sally Chadwick leads the Corporate Communications, Events and Franchise Marketing team at REA Group Financial Services and Mortgage Choice. With close to 20 years working in corporate communications, predominantly in financial services, Chadwick has led communications functions at some of Australia’s largest organisations, including CBA, and was also the general manager of a specialist editorial agency. She is a passionate advocate for the power of great communications and increasing the representation of women in the broking industry.

REA Group/Mortgage Choice

Sally Chadwick

National Australia Bank

Alexandra Taylor

MFAA

Anja Pannek

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Declining proportion of women in broking

4,000

3,500

3,000

2,500

3,679

27.0%

27.2%

26.9%

25.5%

25.8%

25.6%

Number of female mortgage brokers

Proportion of females vs males

Source: MFAA Industry Intelligence Service 15th Edition

Apr 19– Sep 19

Oct 18– Mar 19

Oct 19– Mar 20

Apr 20– Sep 20

Oct 20– Mar 21

Apr 21– Sep 21

Apr 22– Sep 22

Oct 21– Mar 22

3,361

3,267

3,358

3,312

3,249

3,209

3,093

25.5%

25.4%

$2,320

$1,760

1,500

1,000

500

2,000

2,500

$2,333

$1,760

$2,356

$1,908

$2,412

$1,952

Source: ABS Average Weekly Earnings

Gender gap in average weekly earnings – financial and insurance services

Male

show more info

Female

Difference

24.1%

20.6%

19.0%

19.1%

Nov 2022

May 2021

May 2022

Nov 2021

Women in finance continue to earn less than men

Change from previous half-year

0.5 pct pt expansion

3.5 pct pt contraction

1.6 pct pt contraction

0.1 pct pt expansion

Charlene Batson, OnDeck Australia

“It’s critical to provide a workplace that is not just flexible but also promotes work-life balance – and this includes encouraging men to take parental leave”

Other benefits of having more women and a diverse range of voices in a business are well documented, and those companies that get the formula right will have a competitive advantage. “Numerous studies have shown that businesses with more women in key decision-making positions deliver better company performance, greater productivity and an enhanced focus on employee wellbeing and diversity initiatives,” Chadwick says. In a tougher economy, getting approaches right around gender matters will count for more. “Building a gender-diverse organisation isn’t just a matter of harnessing the particular skills that women may have. It’s about having a diverse array of voices at the table,” Batson says. According to a World Economic Forum Global Gender Gap Report, female talent remains one of the most underutilised business resources. Given the labour shortage across most industries, supporting people to remain in the business is a must for any sensible company. “It’s simply good business practice for a company to embrace every available resource to strengthen its operations,” Batson says. Some tangible benefits of having female mortgage brokers come from the important role women play in financial decisions around residential and business lending. “Women often control the financial reins in both households and small businesses – many of the small businesses that OnDeck serves are captained by women,” she says.

Some women prefer to deal with other women when it comes to financial matters. “We have many examples of franchises in our network that have built successful business models focused on meeting the needs of female clients,” Chadwick says. Another proven advantage of having a diverse workforce is that it leads to stronger cultures of innovation and better decision-making. “A diverse workforce allows for more ideas and innovation by bringing in a broader range of skills, experience and perspectives,” Taylor says. As society blossoms in different directions post-pandemic, women can play a key role in making sure the finance sector is representative of the people it serves by helping to make all types of customers feel more welcome. “Consumers are increasingly expecting the businesses they purchase goods and services from to be diverse and representative of the community,” Pannek says. In a white paper to government, the MFAA has recommended boosting investment in female-led small broking businesses to allow them to grow and scale into the future. It also sees women aged over 45 as a large pool of untapped talent with powerful potential for the industry. “Many women in this age group looking to re-enter the workforce encounter barriers such as age discrimination,” Pannek says. "Our industry has the opportunity to be leaders in hiring and training women from this group while providing a flexible and inclusive work environment."

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Taking stock

It can be easy to become discouraged by the difficulty of moving the dial on headline statistics around female representation versus male. But a look in the rear-view mirror shows that there is much to celebrate. Ask practically any senior women in finance about what the culture was like when they first started working, and there is nearly always a story about being the only female in the room. “I struggled for access to mentorship and guidance,” says Byrne. “There was also poor visibility of what pathways other women had taken to further their career in finance. Thankfully, there is now an abundance of employers and organisations centred around supporting and guiding women in their desired direction." Many senior women in finance now make a point of informally mentoring other females or junior staff on a range of career, personal development and business matters. “From my own experience, I feel this is the best way to gently guide up-and-coming women and also offer assistance,” Byrne says.

Industry surveys show that the male and female experiences in finance have cleaved together over the years as workplaces have slowly evolved to treat people more equally. “[The MFAA's] annual diversity and inclusion survey has shown a narrowing perception gap about the differences in the experiences of men and women in the industry, and a greater willingness to promote the mortgage and finance broking industry to diverse individuals,” Pannek says. “We’ve seen a significant shift in how diversity and inclusion overall is viewed in our industry, including female participation. The awareness is there, and the industry is in a position to be able to unlock the enormous potential of the female talent pool out there.” If women are not supported in finance, the sector will increasingly fail to understand the full gamut of needs it ought to be serving. No one wants to see an industry that is only able to let certain skills shine, or one that caters to a limited range of customers. Allowing and encouraging all groups to participate to their full potential in a financial career is crucial to the future of the industry. “The long-term sustainability and relevance of our industry requires us to nurture an environment that is welcoming to people from all walks of life,” Pannek says.

Claire Byrne, Thinktank

“[Flexible options] have been a core reason why many women, including me, have been able to raise a family whilst continuing to pursue a professional career”