Report shows gender diversity improvement in financial services

A report from management consulting firm McKinsey & Co has shown gender diversity in businesses in the financial services sector has improved.

The report, entitled Delivering through Diversity, surveyed 1,007 businesses across 12 countries globally to show how gender diversity has improved and how inclusion can help boost business performance.

Increase

The report found improving diversity can help businesses boost their financial performance. Businesses that are in the top quartile for gender diversity are 21 per cent more likely to see a higher than average increase in profits compared to those in the fourth quartile.

The financial services sector is in the top quartile for gender diversity, with the sector seeing higher levels of representation since 2015 than levels of ethic and cultural diversity.

Among the areas where levels of gender diversity have improved is asset management, with several companies running initiatives to help encourage more women to work in the industry.

Overrepresented

The report stated businesses in the financial services industry are overrepresented in the top quartile for gender diversity and that firms in the sector have been able to boost gender diversity more than other sectors that were examined in the report. Women now make up 18 per cent of executive teams in the financial services industry.

This figure was found to be higher compared to businesses in industries such as consumer and retail, where women make up 13 per cent of executive teams.