Advancing Women of Colour in Financial Services

In today’s business landscape, diversity and inclusion have become essential pillars of organisational success, with over 90% of CEOs now considering diversity a top business priority. However, the journey toward meaningful change—particularly for women of colour—remains challenging. In the financial services sector, traditionally dominated by homogeneity, the representation of women of colour still lags, especially in leadership roles, where only 4% of Black women hold C-suite positions. Despite the industry's vocal commitment to diversity, women of colour often face numerous barriers to advancement, ranging from overt discrimination to subtle biases embedded within recruitment processes. 

Invisible recruitment hurdles 

Recruitment is often the first step in any diversity strategy, but it can also be where many obstacles are. Women of colour frequently encounter implicit biases that affect their chances of being hired or promoted. For instance, studies have shown that CVs with names perceived as "ethnic" are less likely to receive call backs compared to those with more "neutral" names, even when qualifications are identical. 

Additionally, the culture within many financial institutions can unintentionally favor candidates who fit a certain mold—often one that excludes women of colour. This bias can manifest in interview questions, the criteria used for selecting candidates, and the types of networks that are tapped into for referrals. Another example is the overemphasis on “cultural fit” during the hiring process, which can lead to the exclusion of diverse candidates who may not share the same background or experiences as the existing team, thereby perpetuating a barrier to entry. 

A double-edged sword for AI 

As companies increasingly turn to technology to streamline hiring, artificial intelligence (AI) has emerged as a key tool in recruitment. However, while AI has the potential to boost diversity by eliminating human biases, it can also reinforce and amplify those biases if not carefully managed. 

For example, AI algorithms are often trained on historical data. If this data reflects past biases—such as a preference for candidates from certain backgrounds or schools—the AI will perpetuate these biases in its recommendations. A notable case involved a major retail company that scrapped its AI recruitment tool after discovering it was biased against women, favoring CVs that used male-associated language and penalising those that mentioned women's colleges. 

Despite these challenges, AI can still be a powerful force for good in the realm of diversity hiring, provided it's used responsibly. By designing algorithms that prioritise diversity and regularly auditing AI systems for biases, companies can leverage technology to create more equitable hiring practices. For a deeper dive into this topic, you can explore how AI can boost diversity hiring here. 

Strategies for change 

To genuinely advance the representation of women of colour in financial services, organisations must take a holistic approach that goes beyond recruitment. This involves fostering an inclusive culture where diverse voices are not only heard but are integral to decision-making processes. Mentorship and sponsorship programs specifically designed for women of colour can also play a crucial role in breaking down the barriers to advancement. 

Moreover, companies must be willing to scrutinise their recruitment processes with a critical eye, ensuring that every stage—from job postings to final interviews—is free from bias. Regular training on unconscious bias for recruiters and hiring managers can help mitigate the impact of implicit prejudices. 

Partnering for success 

At Selby Jennings, we understand the complexities and challenges of building diverse and inclusive teams. With years of experience in growing international robust talent pools, we have established deep relationships across the financial services industry, enabling us to connect organisations with top-tier talent that meets both their skill and diversity goals. Our expertise allows us to assist organisations in not only finding the right candidates but also in ensuring that these candidates are given the opportunities they deserve to thrive. 

If you're a hiring manager or part of an organisation committed to advancing diversity within your teams, take the next step by request a call back today and discover how Selby Jennings can help you achieve your recruitment objectives, both in terms of skills and diversity.