Diversity and Inclusion in Financial Services

What is Diversity?

Diversity is the range of human differences,  including but not limited to race, ethnicity, gender,  gender identity, sexual orientation, age, social class, physical ability or attributes, religious or ethical values system, national origin, and political beliefs. It is about the representation, or under-representation, in various contexts of different perspectives, lived experiences, identities, cultures and demographics.

What is Good diversity?

Good diversity, that is diversity in which each category and group is evenly represented and fairly treated, opens up the opportunity for growth and innovation. It is therefore something which businesses should pay close attention to and ensure that their employees are well-versed in.

What is Inclusion?

Inclusion on the other hand can be defined as ‘the practice or policy of providing equal access to opportunities and resources for people who might otherwise be excluded or marginalised’. It is the ecosystem within which organisations can seize the opportunity to let those differences thrive by acknowledging and respecting each of them and by implementing them into their everyday business practices.

What is the importance of diversity within organisations?

Diversity & Inclusion, some sectors are still lagging behind. And financial services is one area where big improvements are still needed. For example, the sector has one of the worst gender pay gaps in the UK.

Despite now making up 43% of the workforce in financial services in the UK. In 2019 for instance, women’s UK representation on executive committees in major financial services firms was only 20%. These are staggering statistics that should concern more people than they currently seem to and which need to be taken seriously if things are to change for the better in the near future.

Another key area of Diversity & Inclusion which needs more attention is race. Approximately 4.5 per cent of the UK population identify as black African, Caribbean or mixed-race heritage. It is crucial not only for attracting and retaining talent, but also for the attendant economic benefits it provides companies.