• Aysun Ahi, Chief People Officer at OpenPayd


• 29.09.2021 01:15 pm
#innovation

The fintech industry is burdened by deep-rooted societal challenges when it comes to diversity and inclusion (D&I). At a glance, it would seem that gender representation should be increasing. Women and minorities are graduating university at higher rates than their male counterparts, but that shift isn’t obviously reflected in the technology and fintech sector. Despite decades of progress women still only represent 29% of the staff in the fintech sector. It seems that the technology and finance industries are still encumbered by a diversity problem inherited from a bygone era. 

Some key industry players have previously blamed a limited pool of talent for the lack of company diversity. But that only perpetuates the misconception that one must fit a certain stereotype to have a place in the industry and runs counter to the driving ethos of the technology sector. Not to mention that homogenous teams stifle innovation. If your employees all share the same backgrounds, perspectives and experiences, you’ll have a hard time adapting to changing market landscapes and meeting the needs of different customer groups.

Innovation has never been more important than in a post-pandemic world as companies grapple with the implications of hybrid working on their staff and their bottom line. Companies need to actively attract the groups that have traditionally been left behind to ensure that everyone has a say in shaping the future of fintech. 

Why D&I?

People are at the centre of everything our industry does. To truly grasp all the benefits diversity models can offer, we need to ensure that our culture evolves to reflect the changing attitudes of our customers and employees. Increased industry awareness of the issue through content and initiatives (such as the TechTalent Charter and the nascent Minorities in Fintech group) are very positive signs of change, but there is still work to be done. A recent Deloitte report estimated that over the next decade, female representation in the boardrooms of fintech companies is on track to improve by just 9% - almost imperceptible progress. That’s despite the fact that gender diverse organisations are 21% more likely to have greater financial returns than their less-diverse industry peers according to a McKinsey report.

However, gender diversity is only part of the equation for inclusion. Our personal identity is composed of other elements including our ethnicity, sexual orientation, and background. To be truly inclusive we must embrace all aspects of an individual’s identity. By bringing together a diverse team of people with different genders, ethnicities, languages and abilities, companies can better build products and services that reflect the customer base they are trying to serve. 

This is even more important in the financial services industry. According to the FCA’s Financial Lives research, Black, Asian and minority ethnic adults are disproportionately represented among the growing number of vulnerable consumers, and so at greater risk of financial harm. Diverse backgrounds and experiences within a company are necessary to overcome biases and blind spots, ensuring that they can adequately respond to the needs of their customers. 

And it’s not just customers who need representation, but the next generation of talent, too. For Gen Z employees, being an ethical, equal and diverse company is at the top of their list of attributes when seeking career opportunities. They want to work for companies that mirror their own values. 

Bringing diversity into the fold 

Fortunately, everyone, from early stage fintechs through to incumbent market players, can sow the seeds of change and turn the sector’s biggest threat into its greatest opportunity. The way forward lies in a holistic approach to building diversity: from the bottom up and the top down. At OpenPayd, we do both.

Starting from the bottom up, it is crucial to actively seek out wider pools of talent, rather than just relying on the same sources for recruitment. Companies are in a position to drive change here and help build this wider pool of talent, through initiatives like the government KickStart scheme. Investing in talent as early as possible, working with universities and schools and offering educational or internship programmes, allows diversity and inclusion to permeate your company culture.

By working with partners and non-profits to guarantee these opportunities, companies can nurture the diverse talent they need to keep growing and innovating. However, support in education is not enough. As more women and minorities continue to enter the workforce, they are facing a number of obstacles inflicted by unconscious bias. 

Talent acquisition and management must be based on skill analysis and merit, and multiple people from across the business should be involved in the hiring process. Ensuring a diverse range of team members are involved in the process helps navigate biases and results in hiring a more diverse range of people. 

Diversity is only half of the story; inclusion is key

Ensuring diversity from the top down also helps to retain your workforce, as the composition of your board and executive team should reflect the ambition of any business and the workforce it hopes to build. Policies are helpful in making sure your business is continually working to stay diverse, but it’s the culture created by the senior team that will retain talent. 

There are many ways companies can cultivate inclusive environments. One is to invest heavily in training and development for members of staff - ensuring the team is not just doing the best work, but also that they feel valued and know that they can train in areas that advance their career. Companies that provide their promising employees with a clear path to leadership and having diverse representation among the company’s senior ranks also pave the way for others like them to follow.

Another solution is structured training to help managers and leaders develop a better awareness of exclusionary practices and unconscious biases. This enhances their leadership credibility and empowers them to champion diversity and inclusion throughout the organisation.

Lastly dedicating time and space, as well as resources, is critical. While training is important, the power of networks shouldn’t be understated. Dedicated committees provide women and minorities with a platform to engage in meaningful dialogue, have their voices heard on issues that are important to them and give them access to a network of advocates that will champion their career advancement. 

The time is now

Fintech was born to disrupt. And now, after the toughest of years, we have an opportunity to embrace diversity and inclusion in a meaningful way, to disrupt the status quo once again and build a workforce that works for everyone. It’s an opportunity to supercharge our recovery with inclusivity and innovation at its core. 

This requires new ways of thinking and the recognition that diversity is more than just a tick box exercise – it is an ongoing learning process. Companies must take responsibility for their culture. Whether you are a company of two or two hundred people, your business will have a culture – it manifests naturally. But it’s up to you whether that culture is inclusive and diverse. 

At OpenPayd we’re proud to have a 57% female C-suite, a 42% female workforce and colleagues from 15 different countries. And I believe that our astounding success in a time of great uncertainty can be attributed to the work we’ve put in to cultivating a culture where diverse perspectives are welcome. However, we recognise that there is still more work to be done and hope that we can be an example of what great things can be accomplished when businesses embrace diversity in all forms.