Glass ceilings and a lack of diversity. It’s a common problem in many industries and many countries, but banking and financial services in the U.S. has a particularly deep-seated problem. Despite the many diversity and inclusion initiatives across the banking sector, we still see many persistent problems.
In 2020 the House Committee on financial services prepared a report that highlighted the business benefits of more diversity and inclusion across banks in the U.S. The report then highlighted some of the concerning issues that remain in this industry. These problems still exist despite the clear business advantages of more diversity.
In 2021 the campaign group, the Committee for Better Banks , published research that went even further. When CNN reported on their research the headline was: “Racial bias runs deep at America’s biggest banks.”
Many industries struggle with diversity and inclusion, but it is particularly important in banking because banks create the foundation for almost every other industry. These companies manage employee benefits, insurance benefits, and they help new companies get started. Minority representation is essential to ensure fairness at all levels — as an employee or as a customer.
So, what does all the research say about the business case for diversity and inclusion?
The House Committee report gives a strong summary: “Companies in the top-quartile for gender diversity on executive teams were 21% more likely to outperform on profitability. Companies in the top-quartile for ethnic/cultural diversity on executive teams were 33% more likely to have industry-leading profitability. That this relationship continues to be strong suggests that inclusion of highly diverse individuals — and the myriad ways in which diversity exists beyond gender (e.g., LGBTQ+, age/generation, international experience) — can be a key differentiator among companies.”
It’s clear that diversity comes in many forms. Gender, ethnic and cultural, LGBTQ+, age, physical disability, and even foreign co-workers or those with international experience. There is no single variable, but across the board there is a clear business benefit to greater diversity — look at that 33% figure.
If one single strategy could lead to a 33% increase in profitability, then wouldn’t you take immediate action?
Why not today?
VXI is an NMSDC-certified and minority-owned business process outsourcing specialist with over 40,000 employees around the world. We believe we have a responsibility to affect change while helping our clients build meaningful customer relationships through high-value services and a socially driven mission.
In our experience, our clients want a partner that can be a change agent. They want a partner that is experienced and competent, but also ready to innovate and explore new ideas. They want a collaborative partner that is the right size, has the right structure, and has a growth mindset.
For the past 50 years, the National Minority Supplier Development Council (NMSDC) has advocated for, certified, and facilitated the inclusion and development of thousands of minority business enterprises (MBEs). The target is to get the economic impact of these businesses past $1 trillion per year. This target is in sight and can create millions of high-quality American jobs.
There are many pathways to inclusion, but creating opportunities for a diverse workforce can take time. One of the fastest ways to accelerate action is to explore supplier diversity . Think carefully about the partners you hire as expert suppliers to your business.
As just one example of an initiative we are currently engaged in, we have built a program that partners with one of the leading Historically Black Colleges and Universities (HBCUs) to create career opportunities for students and provide learning opportunities while supporting the customer care needs of a leading global bank.
This program enrich es the college experience by providing on-the-job learning opportunities for selected students and sets up a path for students to explore post-graduation opportunities working for the clients they support.
This program connects U.S. students who work part-time alongside an offshore customer service team. They not only receive training and work experience, but they also learn about the processes involved in working within a global team. This program is literally developing the next generation of diverse leaders for our corporate partners.
We can see it works — our clients have told us, and we have been doing it for over 25 years. Taking a purpose-driven approach by hiring a partner that is already certified with the NMSDC can accelerate your progress — creating jobs and rapidly helping your team to become more diverse and more successful.
For more information on purpose-driven outsourcing at VXI please click here .
