This June at The Fintech Times, we’re focusing on diversity, equity and inclusion (DEI). No longer just a trending topic but an essential consideration to not only your business operations but in your offering as well, this topic feels more relevant now than ever before.
The fintech industry is known for its innovative, agile reputation, and yet it still faces a significant diversity problem that threatens to halt its growth and stop that innovation moving.
The problem often seen when it comes to diversity initiatives is companies falling into the trap of doing the bare minimum simply to check a box. Unfortunately, that doesn’t fly any more, and real action must be taken that is anything but performative.
Here we spoke to members of the industry to learn exactly how organisations can avoid falling into the “tick box” trap.
Getting it right
Jane Reddin, partner, platform and talent at AlbionVC said:
Jane Reddin, partner, platform and talent at AlbionVC
“Unicorn founders hire 3 to 5 leaders every year, thus it is critical to get this step right. When working with fintech founders to build high-performing and diverse teams, we use our proprietary methodology and tool called the Hiring Playbook.
The playbook provides objectivity, clarity and alignment for everyone involved in the hiring process. It saves founders time, money and helps ensure they are recruiting the best possible team. At its heart is a scorecard which helps founders move away from CV and box-ticking logo collection. In essence, this scorecard helps every hiring leader assess candidates on a number of dimensions, including cultural add. It recognises transferable skills and maps those on to what is critical in each role. This fair competency-based system helps overcome bias that is inherent in the financial system by enabling founders to identify candidates who they may otherwise have overlooked.
“Last year, when helping AlbionVC companies hire this methodology ensured over 30 per cent of candidates at first interview came from a diverse background (women/ non-white).
A robust vision
Sung Hae Kim, chief people officer, Kueski
Sung Hae Kim, chief people officer at Kueski, a digital financial services platform in Latin America, said:
“To steer clear of superficial actions, fintechs should establish and communicate a robust DEI vision. Commitment from the leadership team is essential; they must drive the necessary changes to realise this vision. Seeking grassroots feedback and ideas from the company population is also crucial and implementing initiatives that genuinely impact DEI outcomes is key. The efficacy of these efforts is measured through data from surveys and metrics related to hiring, compensation, and promotion practices.”
Utilising resources
Gabby Kusz, COO, TCS
Gabby Kusz, COO of TCS, a fintech and freight technology company, and a board member of the Association for Women in Cryptocurrency, said:
“DEI should not be a ‘tick the box’ exercise – but rather a thoughtful and engaging process that begins during the design of products, services and corporate roles. For those in the fintech and digital asset industry – there are some amazing resources out there including from the Inclusive Design Institute, the Black Women in Blockchain Council as well as the Association for Women in Cryptocurrency. One of my favourite resources is the recent State of Inclusion Report 2024 which outlines both the status as well as insights into how to advance DEI within the industry.”
Lead with humility
Carrie Freeman, executive lead, GET Cities
Carrie Freeman, executive lead and chairperson of SecondMuse Group at inclusion consulting firm GET Cities. said:
“The first thing for any fintech business to do when tackling DEI issues is to do an assessment of where you are. Everyone will be starting from a different place, so focus on identifying your unique gaps and opportunities first.
“After you’ve determined what your main priorities will be, you need to make an active commitment across the entire Executive Team with a plan in place that regularly measures and communicates progress and setbacks. Accountability is key; without it, you risk your DEI efforts being perceived as a performative exercise, which can be worse than not taking on the work in the first place.
“Another way to avoid falling into the trap of checking boxes or performative allyship with regard to DEI is to make sure you lead with humility. Know what you don’t know and where you need support or expertise, and make sure that all those involved have that same commitment and approach. This is hard work and you will be challenged. So you need to make sure you’re prepared not only in your planning and resourcing but how you’re showing up as people in the first place.”
Demand Diversity
Martha Salinas, Chief Commercial Officer at TreviPay,
Martha Salinas, chief commercial officer at B2B payments company, TreviPay, said:
“While progress has been made, the path to genuine representation and equality still faces challenges. Research shows people gravitate toward those they most identify with, which means it is more natural for men to provide mentorship to other men. To create equal opportunities and embed this in company culture, leadership must be intentional to change these dynamics. Intentionality is what is necessary to get us to a place of more balanced representation.
“For companies who have not yet instituted DEI awareness and training, it is important to call out that new generations and our global business structure demand diversity. But this is not championing diversity for diversity’s sake but creating a foundation of inclusivity built on empathy and ingenuity. I encourage everyone to get involved in DEI programs at their organisation. These efforts will go a long way to helping us understand others at a deeper level and leverage the power that comes from diverse teams and diverse ways of thinking.”
The post How to Avoid a “Tick Box Exercise” When it Comes to DEI appeared first on The Fintech Times.
