Diversity in the Financial Services Industry Banking and the Economy: A Forum for Minorities in Banking September 28, 2018

Research Objectives What available data show about trends in management-level diversity from 2007-2015 Trends in diversity among potential talent pools

Progress in Minority Representation in Senior Level Management Slower Compared to Lower Level Management

Decline in African-American Representation with Asian and Hispanic on the Rise

Representation of Minorities in Management Varied by Sector

Representation of Women in Management Varied by Sector

Representation of Minorities in Management Positions at Financial Services Firms of Different Sizes, 2007 and 2015

Representation of Women in Management Positions at Financial Services Firms of Different Sizes, 2007 and 2015

Talent Pools for Financial Services Positions Were Diverse African-American Asian Hispanic Other

Minority Women Were Earning a Greater Share of Advanced Degrees than Minority Men Asian Hispanic African-American Other

The Internal Pipeline Was Racially and Ethnically Diverse Asian Hispanic African-American Other

Women Comprised Half of the Professional Positions in the Internal Pipeline Asian Hispanic African-American Other

What’s Going On? EEOC data not designed to capture the causes behind the trends. Point in time Lacks information on staff movement Lacks data on firms with fewer than 100 employees

Challenges to Workforce Diversity in the Financial Sector Recruiting Negative perception of the financial industry Recruiting strategy Competition Retention Lack of women/minorities (mentors/role models) in management positions Resistance from middle-management Unconscious bias

Strategies for Improving Diversity Recruiting Broad-based recruiting Establishing relationships with professional associations and student groups Retention Establishing affinity groups Unconscious bias training Establishing management-level accountability

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Contact Daniel Garcia-Diaz, Director Financial Markets & Community Investment U.S. Government Accountability Office garciadiazd@gao.gov