The financial services industry is embracing the push for diversity and inclusion as never before, though lots of work remains for the sector to more adequately represent the people and community it serves.
This is the general view of the judging panel for ThinkAdvisor's LUMINARIES, a groundbreaking program to recognize individuals, firms and programs working hard to move the wealth management industry forward in terms of its diversity and inclusion, as well as in three other areas (thought leadership, executive leadership and deal-making/growth).
Though more than half of the U.S. population is female and women control one-third of household assets (more than $10 trillion), only about 1 in 5 financial advisors are women, according to Cerulli data. The figures are much lower for Asian, Hispanic and Black advisors.
"After the #MeToo movement, the public focus on anti-Black racism last summer and anti-Asian racism this year, I've noticed that industry executives — including mostly white men — have a much greater willingness to have conversations around topics previously considered taboo," said Sonya Dreizler, an industry speaker and writer, as well as the head of the consulting group Solutions With Sonya.
"What I'd like to see next is moving from conversations and pledges to measurable commitment and action on pay equity, hiring and retention, as well as more intention around who we listen to," Dreizler added.
'Crossed the Transom'
Gabe Garcia, head of corporate development for Cresset Capital Management, believes the industry has "crossed the transom of awareness; but there is still much work to do, so this does not become a 'check-the-box' item for corporate responsibility, and instead is actually a cultural cornerstone."
For Garcia, "It's heartening to hear the conversation happening in our profession. It starts first with awareness, then creating real curiosity and introspection, and then true engagement and change."
D&I work "is about pursuing progress before perfection," according to Renée Baker, head of Private Client Group Advisor Inclusion Networks for Raymond James. The industry has recognized the importance of these issues, Baker explained, "and the key difference I've seen is the intentionality and focus on a [well-]thought-out D&I strategy — and working alongside each other to measure accountability."
Firms across the industry "continue to see encouraging results with new advisor training programs and pipelines, signaling great progress on recruitment efforts," she added.
In addition, "I'm also seeing a more human approach when addressing racial inequality in the industry. Self-education and additional resources are available, more than ever before," according to Baker.
Future Steps
To further move the D&I needle in the industry, further collaboration is required, she said. "Together we can change how we hire and cultivate diverse talent — especially if we want to attract and, more importantly, retain this talent in financial services."
Industry players "need to remain intentional about creating a more inclusive firm," according to Kate Healy, a longtime industry veteran and former TD Ameritrade executive. The industry "cannot let the recent awareness fade away," she added.
