Looking at how much women have accomplished in the financial industry it's tough to believe that just 50 years ago, women could not obtain credit in their own names. As late as 1974, banks and creditors could openly discriminate against women or minorities who wished to access these financial tools, thus closing off all manner of ways to achieve economic mobility.
That changed on Oct. 28, 1974, when President Gerald Ford signed the Equal Credit Opportunity Act, or ECOA. Under the law, creditors could no longer legally discriminate against applicants on the basis of race, color, religion, national origin, sex, marital status, age or public assistance status.
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With the stroke of Ford's pen, financial politics in America were forever changed.
Women now had agency over their finances — and agency over their lives. They could apply for their own credit cards. Buy their own houses. Sign on the dotted line themselves, without having to convince a husband or a father to cosign. It also meant applicants could no longer be grilled by financial gatekeepers about personal choices like their lifestyles, including when they were going to get married or why they weren't hurrying up and having kids already.
My mom was 24 years old when this bill passed and was a newlywed. During her college years and early 20s, she used her dad's credit cards for things like gas and groceries. My dad was not a U.S. citizen at the time, so he hadn't been able to establish credit on his own despite arriving in the country at age 7. To say that this bill was transformative for my mom would be a vast understatement. It allowed her to stop relying on her own parents financially and helped her create financial access for my dad as well.
Notably, the law was also a huge step forward for minorities — both women and men — who had routinely faced flat denials from banks even when they were good candidates for a loan.
Of course, the enactment of ECOA didn't mean the world and the culture changed overnight. The new law said one thing, but long-held societal norms said another. Women and minorities continue to face skepticism if not overt discrimination, which sadly carries through in some forms to this day. For example,
Fintechs that want to acquire bank charters face multiple obstacles, from increased regulatory scrutiny to stiff competition from established banks.
Over the last few decades, we have seen one disruptive technology firm after another overturn old industry norms and establish new ways of thinking and doing. This is how fintech sprung up, in large part, to shake up the legacy banking system, and help more people access financial services.
To me that's the promise of fintech, and why our sector is growing rapidly. Fintech revenue is expected to grow three times faster than the traditional banking sector between 2022 and 2028,
But, even now 50 years after ECOA, women are still working to catch up — and I want them to have a bigger piece of that pie. Last year,
Beyond the lack of access to traditional funding and business networks that affect women founders, there is an inherent bias in the system because venture funding is weighted so heavily toward technical founders. Only approximately 18% of
For fintech to achieve its true potential of democratizing financial access for all, we need diverse viewpoints among fintech founders, board members and advisors. It is essential that we lead the movement transforming financial literacy, investment, retirement planning and more. I am thrilled to see incredible ideas coming to market from
If you're a woman interested in fintech: We need you. We need your ideas, your energy and your unique take on the world. There is a tremendous opportunity right now for female founders to reshape the financial landscape for future generations.
We've made incredible gains in the 50 years since ECOA. And I know there's so much more to come in the next 50 to achieve true financial equality.
