The financial services industry is a marketplace in transformation and, as a result, it increasingly demands new capabilities.
The pursuit of talent, inclusion, diversity and equity (Tide) as a commercial priority reflects the recognition that a customer-oriented business needs a wider cross-section of people with a real sense of what their clients are thinking and experiencing, thus more accurately reflecting the society it aims to serve.
Most firms in our sector now have strategies in place to promote Tide, and the reason why this issue is moving up the boardroom agenda in most financial services organisations is that it makes business sense.
More than 75 per cent of the financial services chief executives who have adopted a strategy to promote Tide say it is helping them to enhance innovation, customer satisfaction and overall business performance.
Further, a greater emphasis on Tide also creates a positive impression of an industry that is attractive to people from all sections of the population.
The need to improve Tide has become a key metric for all business leaders in measuring the performance of their business.Indeed, 90 per cent of financial services leaders who have engaged with the Tide issue say it helps them to attract talent and promotes customer centricity, as well as increasing trust, providing boards with fresh ideas and eliminating group think.
Importantly, both the regulator and government are becoming considerably more engaged on this issue, as shown in Pimfa’s recent report "The Regulatory Case for a more Inclusive & Diverse Industry".
The need to improve Tide has become a key metric for all business leaders in measuring the performance of their business.
Indeed, customers, future candidates, non-executive directors, and request for proposal questions all include reference to a firm’s approach to Tide.
Pimfa initiatives
To cater to this, Pimfa launched its "make it" campaign in December; part of our Tide initiative, the campaign is designed to overturn many of the negative perceptions around our profession and highlight that our industry can be a force for good, and acts as a call to action for new talent from all kinds of backgrounds to come in and shape old traditions into something better while ‘making it’ in their career.
Our project has been guided by a steering group of industry chief executives, HR directors and up-and-coming talent in the industry, and presents a bright new future for the sector – one that is responsible, equitable and inclusive, and shows that we understand the issues and are capable of change.
Building a more inclusive society, with all the benefits that brings to the economy, is now a major priority.Within this initiative we have created a free toolkit for all firms, a microsite full of information and a video wall of people sharing stories about their careers experiences – all created to demonstrate that our industry is an attractive place to start a career and work in for people from every kind of background.
But, once the recruits have joined, we need to keep them. Getting talent into senior positions at an earlier stage is a key element in achieving this and we are already actively engaged in this area too.
The Pimfa Under 40 Leadership Committee is an exciting initiative that has been operating for more than six years, bringing together talented young people from across our member firms.
These future leaders work together in a dedicated community to learn and collaborate with their peers, conducting primary research focusing on current hot topics impacting our industry.
As an example, past cohorts have delved into such issues as financial literacy; generational savings and investment habits; environmental, social and governance penetration; and the future of advice, contributing enormously to the strategic thinking of Pimfa while creating a network of alumni they can rely on in their future careers.
This year’s participants are looking at how the wealth management industry can be made more accessible for female prospective clients, whether more openness on inheritance would result in better outcomes for the next generation and whether social media influencers fill an educational void that should be filled by financial firms. They will be reporting at the beginning of October.
Building a more inclusive society, with all the benefits that brings to the economy, is now a major priority and bringing our sector together to address these issues in a collaborative environment is surely a major step forward on the road to a successful and prosperous industry.
Liz Field is chief executive at Pimfa
