How the financial services industry can help empower BAME communities
As the Black Lives Matter movement grows across the globe, the conversation has reached UK shores, posing questions about the representation of black, Asian and minority ethnic (BAME) people in society and what can be done to ensure greater equality across the board.
We are privileged enough to work in the vibrant financial services sector. But here the question about representation is more pertinent than ever, with worrying statistics about access to financial support for both BAME individuals and companies and financial institutions now setting targets to improve the percentage of minority groups working across their businesses.
The Bank of England sounded the alarm last year when it reported that not only are BAME staff underrepresented across the board, but the resignation rate amongst ethnic minorities is far above that of the bank as a whole.
The Financial Conduct Authority (FCA) also highlighted that its median pay gap between white and BAME employees stands at more than 28.7 per cent.
Unfortunately the experiences of workers within the financial services sector is reflected far beyond the industry and is particularly apparent as a result of the Covid-19 pandemic.
While financial markets are bouncing back, giving hope to many, it highlights the income inequality among nonwhites, who won’t benefit as much from this market comeback. More than 60 percent of Asian and Black British people have no savings at all, twice the rate of White British people.
In fact, according to the Runnymede Trust and Nationwide Foundation, it doesn’t matter whether it is cash savings, ISAs, premium bonds or stocks and shares, BAME groups are much less likely to have savings than white groups.
Even the current situation with the Covid-19 pandemic is affecting minorities more. The Guardian reports that more than three times as many BAME women who were not employed due to disability or retirement have recently lost government support.
However, statistics show that the very cultural richness of the UK is a key strength when it comes to business. According to a Randstad report entitled ‘Paying Attention’, the UK economy would be £24 billion bigger if BAME people progressed professionally at the same pace as their white counterparts.
And McKinsey and Company’s 2018 report ‘Delivering Through Diversity’ showed that companies in the top 25 per cent for ethnic diversity were 33 per cent more likely to make profits above the industry average, and those with ethnically diverse boards were 43 per cent more likely.
Something then must be done to create more opportunities for BAME people to join the financial sector workforce at higher levels. This will require an active effort on the part of successful white and BAME people like myself. We need to constantly be asking ourselves: what can we do to elevate others?
I’ve been fortunate, as a Barrister, as a former columnist for the Financial Times and a TV presenter on Bloomberg TV, an Oxford University Fellow, I’ve been hired by and elevated by, as it happens, white people — as often women as men. I know my story is not common and too rare.
That’s a privilege to ensure the elevator is sent back down. Not article alone, but through organisations such as TiE — the Indus Entrepreneurs, and the DIT’s Global Entrepreneur Programme, mentor others to help them rise.
But it’s important to stand up and shout too — be visible. Use our platforms. Marcus Rashford showed us that. I’ve seen the power of visibility in my own work in TV — younger people do get motivated — knowing someone else has done it — and hopefully they believe they can do it even better. Silence is not an option.
It has actually been the Royal Society of Arts (RSA) that has led the way in laying out some clear steps that we need to take to move forward. It begins with three key barriers to entry for ethnic minority individuals, from a clear lack of opportunities to the existence of discrimination and an absence of BAME role models.
We need to raise awareness of the benefits of diversity in the workplace. The RSA also suggests involving specialist recruitment agencies to address unconscious biases that exist in the current hiring process. And finally, a role that we can all take within our sectors is mentoring and sponsorship programmes to create fairer networking opportunities.
The UK financial sector lacks not only diversity but also the myriad benefits that diversity brings, both economic and humanitarian.
The good news is there is a will to change. Most financial institutions now have teams dedicated to researching, understanding and making changes to ensure more minorities are given opportunities.
If we succeed, I firmly believe that we will have a better and stronger UK market for all, and a world where everyone has access to the resources they need to fully develop their talents and realise their dreams.
Alpesh Patel
The author is founder of an FCA regulated asset management company, a UK Government Dealmaker for the Dept for International Trade and Chairman of the City Hindus Network. Views personal.