Should we be concerned about DE&I washing 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 views that support the diverse, integrated workplace. With equity and impartiality stated as core values, and an avowed commitment to stamping out racism and build gender equality, it’s a sector that should, theoretically at least, lead the way in diversity, equity, and inclusion (DE&I). But does it? Or is fintech as guilty of DE&I washing as every 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 businesses to jump on in the last two or three years. And since then, we’ve seen a proliferation of business leaders claiming a commitment to the cause. Driven largely by public pressure, following high-profile discrimination cases.

But while the verbal commitment has been welcomed, once you scratch the surface, it becomes clear that that is where the commitment stops. There have been no board or senior leadership changes. 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 bit. It doesn’t mean that those token few with non-Caucasian backgrounds are comfortably integrated and valued within the team. It doesn’t mean that female team members are treated the same, or – importantly – remunerated at the same level as their male counterparts. And it doesn’t mean that all employee’s workplace experiences are the same.

And this is a scenario happening across sectors. Where lip service is belying less uplifting realities.

DE&I in fintech

To give UK fintech credit, the sector does have a higher proportion of ethnic diversity than the broader tech sector. But that is where DE&I progress ends.

According to Tech Nation, 55.61% of people working in UK Fintech are white males. Only six of the 118 leaders that make up the FinTech50 are women. The gender pay gap is higher in fintech than in any other financial services sector, with women being paid 70p for every £1 paid to men in fintech startups. And when it comes to funding, UK Female-led fintechs only receive 4% of investments. While black-owned businesses do even worse, receiving only 0.24% of UK funding.

Astonishingly, despite all of these figures, 70% of male leaders believe the fintech sector to be inclusive.

Why is this happening?

No knee-jerk business strategy has ever proven successful. And that is the problem with DE&I. Following public pressure after a series of awful events, business leaders were cornered into making a response. To keep the public onside, verbal commitments were made. Thought leadership articles were written. DE&I policies were hastily drawn up and no one thought about the execution. The serious elephant in this global room is mindset, because the issue with DE&I isn’t a lack of willingness. It’s a lack of knowledge in the people who have the power to make change.

Sure, they know that DE&I is a ‘trend’ and that it behoves them to say 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 come unstuck.

The only place to start is at the top, by creating an infrastructure of accountability, where integration, diversity, and equity matter to all and are observed by all. Because until that happens, we’re never going to move beyond lip service. Board leaders 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 aligning their offerings to their audience needs could bring.

DE&I washing isn’t just a problem of misinformation. Intentional or otherwise, it doesn’t just mean that brands are misleading their customers, investors, and teams. It means that while the talk creates the impression that change is in action, genuine change will never be able to happen.

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. Founded on the principle that executive development needs to be collaborative, relevant and measurable, Headspring’s purpose is to design a new and more relevant approach to executive development that would be fit for the challenges and business environment of the 21st century.