How financial services can help develop social mobility

August 15, 2024

2 minutes read

Many people believe that socio-economic diversity and social mobility are good for financial services, leading to the widening inclusion both of valuable perspectives and potential talent currently untapped or often underestimated.

It is felt that social mobility and equity of opportunity will be good both for financial services companies and society, particularly upcoming generations of younger people.

Unfortunately, while these aims are gradually coming to be understood, the reality is that financial services still is not socially mobile enough.

The Diversity Project reports that “a disproportionate number of senior roles in our industry are occupied by those from wealthy backgrounds” and DP’s research suggests that “socio-economic diversity is lacking in the Investment and Savings Industry, particularly in front office and senior roles”.

The Bridge Group is a non profit consultancy that uses research to promote social equality.

Their report ‘Who Gets Ahead and How’ shows that across the economy, 52 per cent of UK chief executives come from professional backgrounds – as defined by parental occupation at age 14.

In financial services, this figure rises to 89 per cent, putting the industry significantly out of touch with the communities it serves.

Getting involved

But there are companies committed to improving social mobility, whose experience may be able to encourage other businesses to get involved – and give them ideas as to how.

Peter Hamilton is the government’s disability and accessibility ambassador for the insurance sector, as well as head of market engagement at Zurich.

Hamilton is passionate about social mobility, and works with Zurich to put better equality and equity for those from disadvantaged backgrounds at the heart of his organisation’s work.

“We want our workforce to reflect our customers and communities, and we know that a diverse workforce brings different perspectives, new approaches and higher productivity.” Hamilton says.

He explains: “We have a focus on social mobility, which has included signing up as a member of ‘Progress Together’, an alliance which aims to level the playing field.

“This aims to create a financial services sector in the UK in which everyone working in it, from all socio-economic backgrounds, is enabled and has the opportunity to achieve their full potential.’