Most of us today are aware of the need to improve diversity, equity and inclusion within financial services.
It is also accepted that our industry’s clients are far more diverse than in previous decades and this trend is only going to continue.
Globally, some $2tn (£1.6tn) of wealth with be passed from one generation to the next in the coming decade, and more of that wealth will be in the hands of women than ever before.
So much so that it is estimated that 70 per cent of all wealth in the world will be held by women within two decades. Yet conversely there has also been a decline in the share of women employed in the industry overall, from 51 per cent to 43 per cent in recent years.
And as Financial Conduct Authority executive director of risk and compliance oversight Sheree Howard told delegates at Pimfa’s recent Women’s Symposium, the wealth management and financial advice industry still needs a different and better mix of advisers and advice to ensure women receive the help they need.
As well as being an important business issue for talent, innovation and future-proofing for firms, diversity, equity and inclusion is also a regulatory imperative.
In November last year the FCA set out proposals to improve diversity and inclusion in our industry, noting that “increased diversity and inclusion in regulated financial services firms can deliver better internal governance, decision making and risk management”.
Meanwhile, according to a PwC Global survey, 85 per cent of financial services chief executives polled said promoting inclusion and diversity helps enhance business performance.
Other research also supports the business case for inclusive cultures that lead to increased profitability, creativity and innovation.
In fact, a 2019 McKinsey & Co study showed the top 25 per cent of companies that had a racially and ethnically diverse workforce outperformed those in the bottom 25 per cent of companies for those factors by 36 per cent in terms of profitability.
Increasing opportunities
This is why over the past few years Pimfa has worked on a number of programmes designed to encourage greater diversity, equity and inclusion in our industry, and the response from firms has been overwhelmingly positive.
Among some of the most successful initiatives Pimfa has launched is the Make it campaign, our Authentic Leadership programme and our hugely popular Women’s Symposium.
Next on our list is the Inclusive Futures Insight programme.
This will be dedicated to fostering diversity and inclusion among young talents within the wealth management and financial advice sector.
Designed to open up and increase opportunities for under-served diverse talent, Inclusive Futures champions equity and empowerment.
As part of that programme Pimfa has already hosted the Breaking Barriers Forum, which focused on empowering young women by bringing them together with role models in wealth management to benefit from their insights and build their networks.
