Although women gained the right to vote in U.S. federal and state elections more than a century ago, the fight for financial equality took another 50 years. Even as recently as the 1970s, it was tough for women to get credit or take out loans without having a male co-signer, and more progress is still needed. Read on to learn more about the history of gender equality in finances leading into some current initiatives.
Late 1800s
In the late 19th century, women in many Western countries gained the legal right to own property and control their finances. However, many financial institutions still required women to have a male co-signer to open a bank account or obtain credit.1
1920s
American women gained the right to vote in 1920 when the 19th Amendment to the U.S. Constitution was passed.2 However, financial equality still remained elusive for many.
1974
The Equal Credit Opportunity Act3 in the U.S. prohibited discrimination in credit transactions based on sex/gender and other factors. This allowed women to apply for credit cards and loans without needing a male co-signer.
1988
In 1988, the Women's Business Ownership Act4 was passed. This legislation made it easier for women to access the credit needed to start their own businesses.
2000s and 2010s
In the 1990s and early 2000s, a wide variety of initiatives and programs aimed at promoting women's financial literacy and empowerment gained momentum.5 The rise of digital banking and financial technology ("fintech") has made financial services more accessible to women.6 This access provides particular benefits to regions that lack access to banking infrastructure.
2020s
Efforts to close the gender gap in finance continue. These include initiatives to 1) increase women's representation in leadership roles within financial institutions, 2) improve access to financing for women-owned businesses, and 3) promote financial education and inclusion among women and girls worldwide.7
Initiatives for Equality
Some ongoing initiatives designed to promote gender equality include:
- Gender-Lens Investing: This type of investing supports companies that focus on gender diversity and equity.8
- Financial Education Programs: Many organizations are implementing financial literacy programs specifically targeted at women.9 These programs are designed to empower women with the knowledge and skills needed to make informed financial decisions.
- Women-Focused Financial Services: Some financial institutions are developing products and services tailored to the needs of women, such as gender-sensitive loan products, investment platforms, and insurance offerings.10
Important Disclosures:
Content in this material is for educational and general information only and not intended to provide specific advice or recommendations for any individual.
All information is believed to be from reliable sources; however, LPL Financial makes no representation as to its completeness or accuracy.
This article was prepared by WriterAccess.
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Footnotes
1 Women and Economics: A Study of the Economic Relation Between Men and Women as a Factor in Social Evolution by Charlotte Perkins Gilman
https://archive.org/details/womenandeconomi01gilmgoog/mode/2up
2 National Archives on the 19th Amendment
https://awww.archives.gov/milestone-documents/19th-amendment
3 FTC - Equal Credit Opportunity Act (1974)
https://en.wikipedia.org/wiki/Equal_Credit_Opportunity_Act
4 Women's Business Ownership Act of 1988
https://www.congress.gov/bill/100th-congress/house-bill/5050a
5 Organisation for Economic Co-operation and Development (OECD) on financial education and women's empowerment
https://www.oecd.org/daf/fin/financial-education/financialeducationandwomen.htm
6 World Bank - Fintech and Financial Inclusion
https://www.worldbank.org/en/topic/financialinclusion/brief/fintech-and-the-future-of-finance
7 Women in Finance
https://www.mckinsey.com/industries/financial-services/our-insights/women-as-the-next-wave-of-growth-in-us-wealth-management
8 Gender-Lens Investing Strategies
https://ssir.org/articles/entry/gender_lens_investing_strategies_for_2019
9 Global Financial Literacy Excellence Center (GFLEC) on financial literacy programs for women
https://gflec.org/research/
10 Gender Equality & Economic Inclusion
https://www.ifc.org/en/what-we-do/sector-expertise/gender