Largest-ever study into socio-economic diversity and progression in financial services shows improvements, but work still needs to be done

02 October 2024

Research undertaken by the Bridge Group for not-for-profit membership body Progress Together, revealed that the proportion of those working in senior roles in UK financial services from a lower socio-economic background (SEB) has increased from 26% in 2023, to 28%. Response rates to the key questions on SEB from the sector have also risen significantly, with the average proportion of employees submitting socio-economic data having increased from 49% in 2023, to 58%.

Although these findings show a positive improvement on last year’s data report, Shaping our Economy, there is still more work to be to be done in the sector, with this year’s report also revealing:

• Levels of socio-economic diversity reduce as seniority increases: 58% of those at senior levels are from a higher SEB, compared with 45% at junior levels.

• The proportion who attended an independent school is higher among those in senior positions – 21% against the national percentage of 6.5%.

• White men from higher SEBs are thirty-three times more likely to be found in senior roles in financial services compared with women with an ethnic minority background who are also from a lower SEB.

• The pipeline of talent for senior financial services roles lacks diversity, especially at the middle level of seniority, where on average more than half (51%) of employees are from a higher SEB.

• People from a higher SEB are promoted on average six months faster than those from a lower SEB from junior to mid-level roles. 

• Among all combinations of gender and ethnicity, those from higher SEBs are much more likely to be found in senior roles compared with their peers from lower SEBs.

Progress Together’s new 2024 data report, Shaping the Sector, follows the largest study into socio-economic diversity and progression in financial services ever undertaken. This year’s study includes data from 200,000 employees.

As well as providing detailed analysis of the data, the report makes recommendations to member organisations to help improve their socio-economic diversity at senior levels, including: goal setting, understanding the relationship between SEB and performance, developing talent and leadership programmes targeted at those from lower SEBs, implementing approaches to ensure greater equality in work / client / project distribution by SEB, and exploring the experiences and perspectives of employees to help inform action.

In the report, Nik Miller, CEO of the Bridge Group, said:

“More data results in more valuable insights to inform positive change. As the data becomes more complete and more detailed, we can shape a clearer picture of who is in leading roles and how they get there. Correspondingly, we can share more insightful benchmarking and take important steps towards identifying practices that are associated with positive change.

“It is important the UK financial services sector continues to build on this strong foundation. Those that have the data should maximise its power to inform, focus and evaluate change; and those that are not yet participating have even fewer excuses for being absent.”

Sophie Hulm, CEO at Progress Together, said:

“Senior leaders in this critical sector create organisational cultures that shape societal standards about the ownership of capital – and guide the investment of personal and business assets. Appointments to these roles should be based wholly on competence and efficacy – rather than on factors related to background.”

She also said: “Achieving lasting change in this important area is a marathon not a sprint. We are grateful to our members for submitting their data and for their continued efforts to improve access and opportunities for everyone in one of the UK’s most strategically important sectors. However, there is still a huge amount of work to do to ensure that people from lower socio-economic backgrounds are not excluded from progressing to the highest levels of the UK financial services sector.”

Progress Together works to improve socio-economic diversity at senior levels in financial services, and now represents 55 member firms from the UK financial services sector.