Women in Finance Still Undervalued: The LSE Study Exposes Gender Bias

A new London School of Economics (LSE) study has revealed that women in the financial sector are consistently underrated compared with men, even when their performance is identical. In a behavioural experiment, participants rated a fictitious “Stephanie” as less competent than “Stephen,” despite the same results.

The research, Advancing Women in Financial Services: Productivity and Merit, concludes a four-year Accelerating Change Together (ACT) programme by Women in Banking and Finance (WIBF), led by Dr Grace Lordan, Director of The Inclusion Initiative at LSE. Its central message exposes a bitter truth: financial services still reward perception over performance, undermining meritocracy and stalling women’s advancement.

Dr Lordan noted that women still lack “equal opportunities, visibility, and voice,” while WIBF CEO Anna Lane stressed that inclusion is not only a moral principle but also a productivity driver for the entire UK economy. The report further links gender diversity above 30 percent in senior roles with measurable gains in innovation and growth.

The findings expose a deeper structural flaw in how the industry defines “merit.” If success continues to be filtered through subjective judgement, financial institutions risk misallocating talent and weakening long-term competitiveness. For a sector that champions data-driven decisions, relying on biased evaluations is a contradiction that costs both performance and reputation.

In other words, in a market that prizes accountability, meritocracy is turning from a slogan into a test of credibility.