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Consumers would switch bank over large gender pay gap

Cherry Reynard
Written By:
Cherry Reynard

Over half of women say they’d consider ditching their bank if they have a large gap between male and female pay.

A third (37%) of men would also consider switching, finds new research for SavvvWoman.co.uk.

As companies come under increasing pressure to report gaps between male and female pay, banks have been reporting median gender pay gaps of over 40%, while insurers have seen gaps of up to 34%.

Companies with 250 people or more have to report their gender pay gap by 4 April. Companies should also provide an explanation of why their gender pay gap exists and what they plan to do to close it.

The research finds over four in ten (44%) adults who have a bank account are likely to switch their bank. Even more – 46% – are likely to switch insurer. 45% and 46% would also switch their credit card or investment provider.

Women are more likely to consider switching any of their providers. Millennials are also much more likely to switch providers based on a company having a large gender pay gap. The research finds 57% of 18 to 34 year olds who have a bank account are likely to switch their bank, compared to 36% of adults aged 55 or over.

Sarah Pennells, founder of SavvyWoman, says: “Some banks have got a gender pay gap of over 40% – even up to 60% depending on how you measure it. It’s only now that banks, insurers and investment companies are being forced to go public on this that we can see just how male dominated they are at the top.

“The gender pay gap doesn’t seem to have been a priority for these companies until now. And while many financial firms have produced slick reports showing how they’re tackling the issue, I think they’ll get the message loud and clear if their customers switch to providers with a smaller gender pay gap.”

SavvyWoman is encouraging people to tweet using the hashtag #switchforthepaygap, when they switch their financial provider because of a large gender pay gap.