Should we be concerned about DE&I laundering in Fintech?
Fintech has cultivated a progressive reputation for itself. Despite uniting two traditionally male-dominated sectors – finance and technology – fintech leaders are known for viewpoints that support the diverse, integrated workplace. With fairness and impartiality stated as core values, and a stated commitment to eradicating racism and building equality, it is a sector that should at least theoretically be leading the way in diversity, equality and inclusion (DE&I). But does it? Or is fintech just as guilty of DE&I laundering as any other industry?
What is the problem with DE&I washing?
The DE&I movement began in the 1960s, but it only became a common bandwagon for companies to jump on in the last two or three years. And since then, we’ve seen a proliferation of business leaders who claim to have gotten involved in the cause. Driven largely by public pressure, following high-profile discrimination cases.
But while the verbal engagement has been welcomed, it becomes clear that is where the engagement stops when you scratch the surface. There have been no changes to the board or top management. The only obvious move has been a slight increase in the range of skin tones present in the team photos on the website. But diverse representation is the easy part. It does not mean that the few with a non-Caucasian background are comfortably integrated and valued in the team. It does not mean that female team members are treated equally, or – most importantly – rewarded at the same level as their male counterparts. And that doesn’t mean that all employees’ workplace experiences are the same.
And this is a scenario that occurs across sectors. Where lip service is failing less uplifting realities.
DE&I within fintech
To give UK fintech credit, the sector has a higher proportion of ethnic diversity than the wider tech sector. But that is where the DE&I progress ends.
According to Tech Nation, 55.61% of people working in UK Fintech are white men. Only six of the 118 managers who make up the FinTech50 are women. The gender pay gap is higher in fintech than in any other financial sector, with women earning 70p for every £1 paid to men in fintech startups. And when it comes to funding, UK female fintechs only receive 4% of investment. While black-owned businesses do even worse, they receive just 0.24% of UK funding.
Amazingly, despite all these numbers, 70% of male executives believe that the fintech sector is inclusive.
Why is this happening?
No knee-jerk business strategy has ever proven successful. And that’s the problem with DE&I. Following public pressure following a series of horrific incidents, business leaders were forced to respond. To keep the public at bay, verbal commitments were given. Thought leadership articles were written. The DE&I policy was quickly drawn up and no one thought about its execution. The serious elephant in this global space is mindset, because the problem with DE&I is not a lack of will. There is a lack of knowledge among the people who have the power to make changes.
Sure, they know that DE&I is a “trend” and that it claims them to be saying the right thing. But how do you change the minds of the workforce? How do you remove ingrained racism, sexism, homophobia, ageism? How, in short, do you make change happen? This is where fintech leaders have cut loose.
The only place to start is at the top, by creating an infrastructure of accountability, where inclusion, diversity and equity matter to all and are observed by all. Because until that happens, we will never go beyond our mouths. CEOs are never going to create the right environment for their businesses to grow to their full potential. And fintechs will never achieve the competitive advantage that adapting their offerings to audience needs can provide.
Author
Aicha Zerrouky, DE&I Practitioner and Business Development Director at Headspring Executive, a joint venture between the Financial Times and IE Business School established in 2015. Based on the principle that management development must be collaborative, relevant and measurable, Headspring’s purpose is to design a new and more relevant approach to leadership development that is suitable for the challenges and business environment of the 21st century.
