Written by Charlene Sagoe, International Head of Diversity, Equity & Inclusion, Natixis Investment Managers
An important area that can get missed or overlooked in the shadow of gender diversity, is that of socio-economic diversity in the financial services sector.
As one of the UK’s largest sectors, financial and professional services can certainly have a strong influence on society. The sector employs more than 2.3 million people and represents £12 of every £100 of UK economic output1. However, the UK has one of the poorest rates of social mobility in the developed world2, which means that people from working-class backgrounds do not have access to the same opportunities as those from professional backgrounds, and those who are already economically advantaged tend to stay at the top.
A recent survey from the City of London Socio-Economic Diversity Taskforce3 shows a strong lack of representation in our industry. For example, half of survey respondents at all levels of seniority were from a higher socio-economic background (as defined by parental occupation), compared to a third of the wider working population. In addition, 16% of the survey respondents attended an independent school – over double the national figure of 7.2%. Among junior employees, 47% were from a higher socio-economic background by parental occupation; and 11% were educated at an independent school and for senior level employees (senior manager and above), this rises to 89% and 25% respectively. At the risk of stating the obvious, a lack of socio-economic diversity at the top has wide-ranging social, business and economic consequences for organisations, the sector, and society as a whole.
In recognition of the need for awareness around socio-economic diversity in the industry, Natixis Investment Managers launched the Global Equal Opportunity Advancement Scholarship (GEOAS), a programme aimed at increasing the diversity of students entering the financial services industry. We launched the scholarship programme in 2020, as part of the firm’s long-standing commitment to support local communities and to reinforce its broader efforts to increase diversity in the financial services industry. Now in its third year, the programme is aligned with Natixis IM’s 2024 strategic ambitions to be a responsible employer and create a more diverse and inclusive workforce.
The GEOAS allows two sixth form students who may never have the opportunity to experience working in the financial services sector to receive a contribution towards their university tuition and expenses, along with internship opportunities and mentoring at Natixis IM. Each summer, the scholars carry out a paid internship to gain hands-on work experience and explore working in the business and in different business functions. Over the duration of the programme, the scholars are encouraged to identify and focus on areas of the business they find most interesting, and their internships will be tailored to reflect this. The hope is that Natixis IM and its affiliated investment managers would be a natural first choice employer with students after they graduate. So far, we have seen our students study Economics and Computer Science at higher education providers like Kings College, Royal Holloway, and Bristol Universities.
We acknowledge that as an industry more needs to be done to expand the racial and ethnic composition of our collective workforce. As a business, we are committed to attracting and growing young talent from diverse backgrounds, essential to help evolve inclusivity in the industry and to nurture the next generation of investment management professionals. It’s important to recognise just how key it is for industry players to take action to ensure that talented people from all backgrounds and parts of the country can reach their full potential. By breaking down socio-economic barriers to progression, our financial services sector will become more innovative and competitive, and ultimately help the outlook for the UK in terms of socio-economic diversity and employment.
