Diversity in Finance – How Inclusion is Changing the Industry

Diversity, equity and inclusion (DEI) has become a hot topic in recent years, forcing companies to take this subject more seriously than ever.

When it comes to who they’re working for and who they’re buying from, younger generations are gravitating towards organisations that value DEI. What’s more, research repeatedly shows that businesses prioritising DEI outperform their peers.

It comes as no surprise that a survey carried out by HR software provider, Ciphr has revealed that DEI has been cited as a top priority for HR professionals in 2024.

What does this mean for the finance industry and how is diversity and inclusion changing the world of finance?

Industry responses to diversity and inclusion in finance

In September 2023, The Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA) published consultation papers proposing a new regulatory framework on diversity and inclusion in the financial services sector.

In the papers, they proposed changes which will require firms to:

• Report their average number of employees on an annual basis
• Collect, report and disclose certain diversity and inclusion data
• Establish, implement and maintain a diversity and inclusion strategy (overseen at board level)
• Determine and set appropriate diversity targets
• Recognise a lack of diversity and inclusion as a non-financial risk

While the papers are giving organisations hope that some much-needed guidance is on the horizon, it will also set a minimum standard for the entire industry. Head to the FCA website  for the full paper; ‘Diversity and inclusion in the financial sector – working together to drive change.’

As the world celebrated International Women’s Day in March, industry experts were asked what changes could be made to encourage more women into financial services.

Bronwen Horton, Senior Chartered Financial Planner at Killik and Co said that we should ensure that women currently working within these organisations are visible role models for the next generations.

She commented: “We often hear from young women that they find it hard to be what they can’t see. However, if they’re exposed to hearing from more women commentating in the news, on social media, leading out-reach programmes and sharing how they came to work in the industry, it becomes more familiar and a viable option.”

Harriette Collings, BD Director at Evelyn Partners, thinks that improving work-life balance and flexibility would make a huge difference when it comes to encouraging women to pursue a long-term career in finance.

She says: “We would need to see arrangements in place to help women balance family responsibilities and their career without having to give up one for another. Improved parental leave policies for both men & women, return to work programmes to ensure women are supported during the transition back to work could all support a more established workforce for the long term.”

One of the greatest benefits for any organisation embracing diversity is the greater range of talent they open themselves up to. Diverse employees have different talents and skillsets which can help organisations develop innovative solutions and improve financial performance.

For help building a talented and diverse finance team, get in touch with Acuity Associates to see how we can help.