Shanu Hinduja: «Switzerland Must Set the Best Possible Example»

I am making a call to action. I am urging the Swiss banking sector to fly the flag for diversity and equality. I truly believe that the financial sector is one of Switzerland’s major assets – but it is for just this reason that it cannot afford to be behind the curve on an issue as important as gender equality.

The great Swiss reputation as a financial world leader is on the line here. The country’s robust financial regulation is respected worldwide and rightly acknowledged as a model of best practice. Its reputation for private banking is unrivaled. Indeed, it is because of Switzerland’s regulatory excellence and reputation as a world-beating financial center that my father, Srichand P. Hinduja, chose to set up Hinduja Bank in Geneva – it has given it great stature.

The financial services industry here is overwhelmingly international in outlook, and highly export-oriented. About half of managed assets in Switzerland originate from international customers. The country has a market share of 27.5 percent in cross-border asset management for private customers. But a world leader such as this needs to be able to walk the walk when it comes to gender equality.

«It would be hypocritical to do this in the Middle East if we didn’t practice what we preach at home in Geneva»

Whether forging a career in the industry or seeking finance for their projects, minorities, young entrepreneurs and women continue to face bias. Especially in management and the private banking sector – and even on the new fintech scene – rates of discrimination are holding back great potential.

At Hinduja Bank, for example, we are positioning our institution to support women and young people in the Middle East from our UAE subsidiary, Hinduja Bank Middle East, focusing our efforts on making the financial sector appeal to the next generation. It would be hypocritical to do this in the Middle East if we didn’t practice what we preach at home in Geneva.

«I have a stake in the Swiss banking sector’s success, so I strongly believe I must defend it»

It’s not all doom and gloom. The proportion of female employees in Switzerland’s financial workforce overall increased from 37.1 percent to 37.5 percent last year, according to the Swiss Bankers Association (SBA). This may only be a slight improvement, but the fact that it builds on sustained advancements in previous years should be praised. Progress is being made. As the first female board member at Hinduja Bank Switzerland, I had opened a door – so it was felt more acceptable to elect another woman onto the board. Yet more must be done.

It’s a global problem, of course. The gender imbalance affects the financial sector the world over. We’re speaking out against it. But as the Chair of Hinduja Bank, headquartered in Geneva, my sights are firmly set on Switzerland. I have a stake in the Swiss banking sector’s success, so I strongly believe I must defend it – even if that means urging it to face up to some harsh truths. Perhaps that’s why London's «Sunday Times» (behind paywall) took note of the issue.

«A woman leading a bank, or raising funds to start her own business, shouldn’t be front-page news»

I am keenly aware that when it comes to female leaders in the local industry, I am in a very small minority. I was upset – though not surprised – to read that a survey last year of 50 Swiss banks identified only three with female CEOs. A woman leading a bank, or raising funds to start her own business, shouldn’t be front-page news.

Credit Suisse has noted that among the country’s businesses there are 70 percent fewer women than men in charge of finance – a structural problem that inherently holds them back from reaching other positions in the boardroom. Given that women hold only 6.7 percent of top management jobs, it is no surprise that male-dominated boardrooms tend to elect male chairs.

And we don’t have to look far to see stories in the papers of female bankers’ careers hurt by their decision to have children. Swiss law guarantees 14 weeks’ maternity leave – vital, certainly, but still among the lowest rates in Europe.

«At events and conferences, people ask why I wear a tie»

While finance remains a sector where the odds are stacked against us reaching positions of leadership, there have been improvements in getting women into the industry’s lower levels. But then again, we could do better. Even those institutions with the highest share of female employees in the country – the regional banks and savings banks – have only reported figures of 45.2 percent and 44.6 percent, respectively.

I have seen the effects of the gender bias up close in Geneva. At events and conferences, people ask why I wear a tie – the powerful mark of a man’s world. I may feel compelled to dress up in a suit to «fit in» around professional men. But I should have the right to wear exactly what I want. It convinced me that we need more women business leaders and entrepreneurs.

As a beacon in the global financial sector, Switzerland must set the best possible example. If the industry could tackle the gender imbalance head on, it would reap the rewards of a vibrant, meritocratic workforce, and help grow the economy. We owe it to all the women who are making careers in banking to ensure that Switzerland’s flagship industry is equal, inclusive, and fit for purpose in the twenty-first century.

Shanu S.P. Hinduja is the Chair of Hinduja Bank (Switzerland), Chair of the Hinduja Foundation U.S., and Co-Chair and Director of Hinduja Global Solutions. Daughter of the Bank’s founder, Srichand Parmanand Hinduja, she has fought to usher in a more equitable financial industry. She began her career at Merrill Lynch, Morgan Stanley, and Nomura, working in portfolio and asset management, having graduated in finance and economics from the Insead Business School in France. In 2019, she was appointed Professor of Leadership at the University of Bolton's Institute of Management. These are personal opinions and do not reflect those of Hinduja Bank (Switzerland) or any other entity.