The European Central Bank proposed this year to use gender diversity among criteria for approving board members at the financial institutions they supervise. Such initiatives are mandated for increasing representation of women in an industry that is still dominated by men. There is a community of women on the rise committed to conquering space and building a new world of finance which is diverse and inclusive through technology innovation and business. These are the women who on the 3rd of November 2021, will attend the Women in Finance Summit & Awards to recognize female professionals who are making waves in business across the banking and financial services industry sector. More than just an awards ceremony, the summit seeks to provide expert insights through sessions to drive change and make a meaningful difference to companies’ revenues and to communities. Did you know that customers are three times more likely to buy a product or service from a brand they perceive to be committed to diversity and inclusion? Up until now, driving economic growth and confronting social equality have been mutually excluded. The rise of eco conscious consumers will force the bank of the future to rethink its sustainable strategies and become a digital lifestyle enabler.
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Prior to the pandemic, cashless payments were trendy and cash has increasingly not been an accepted form of payment on public transport and a number of ‘cashless’ food establishments. In a COVID-19 world, going cashless is now a necessity. However, as with most significant changes to society, the vulnerable groups and people on the ‘peripheries’ will be at risk. But a cashless society doesn’t need to be something that we fear. We need to work together to prepare for the changes to come and prevent anyone from becoming left behind. The banking community needs to come together to solve consumers’ frictions by drawing on research, creative and analytical skills with a deep understanding of the entire customer journey, using the latest technology combined with a human touch to deliver services that cater for these at-risk and vulnerable communities.
Sustainability is business critical for all industries. In the banking and financial services sector, many traditional banks, financial institutions and challenger banks have started to embrace sustainability by integrating ESG into their business priorities, adopting sustainable initiatives and driving sustainable behaviours and outcomes. The importance of scaling sustainability initiatives has been accelerated over the course of the pandemic, brought about by changing customer demands, greater transparency and societal pressure. By leveraging digital technologies to drive sustainable finance and a sustainable supply chain, corporations can create a sustainable future, initially supporting a goal of becoming net zero and, ultimately, reducing the carbon footprint.
Our Benchmark for Sustainable Banking report highlights a high level of awareness around sustainability challenges among banking executives. Over three quarters of UK (78%) and Dutch (91%) banking executives view sustainability as an important part of their business strategy. For the US, it is unsurprising that this figure stands at 98%, given the level of exposure around being sustainable among the public and in the media, and the fact the market is a mature one. While it is pleasing to see that banks across all territories have some understanding around the importance of sustainability, the survey finds that less than a third of banking executives in the US (32%), UK (31%), Netherlands (28%) and Germany (24%) believe sustainability is a top concern at board level. On top of this, less than half of banking executives in the US (43%), UK (45%), Germany (40%) and the Netherlands (36%) are planning or implementing sustainable measures as part of their business strategy.
Although digitalization is often mentioned as a top priority by financial service companies, very few of them translate these statements into hiring and talent development plans. They need digital skilled people to achieve the ultimate goals of digitally transforming their bank or financial institution. They can only do this if they have a diverse team of tech talent in place. This can only be accomplished by hiring a variety of people from different backgrounds and cultures. This would offer the balance of voices and diversity of thought needed for companies and industries to innovate and increase productivity. Diversity without inclusion will result in tokenism. Tokenism is defined as: “the practice of making only a symbolic effort to do a particular thing, especially by recruiting a small number of people from underrepresented groups in order to give the appearance of sexual or racial equality within a workforce.” The danger in tokenism is that it masks fixing the root cause of lack of diversity. We must simultaneously make sure to hire the right person for the right role, from reviewing how to write job descriptions (do they have unconscious bias in them preventing a wider audience from considering their suitability) to investing at grass roots to ensure that we widen the talent pool for the next generations coming through.
Join my presentation at Women in Finance Summit and Awards UK edition on November 3rd at 11:35am to get a deeper understanding of how to fuel sustainability and inclusion into your procurement. Get in touch via Linkedin.
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Find out more about Digitisation in Sustainable Banking by visiting our website.
