Diversity In The Finance Industry Statistics 2024: Breaking Down Key Trends and Benefits
Barry Elad
Updated · Dec 09, 2024
In 2024, the finance industry is under the spotlight, not just for its economic contributions but for the pressing need to improve diversity and inclusion. For years, finance has been dominated by a largely homogenous workforce, particularly at the executive level. However, as businesses and stakeholders demand change, the financial sector is slowly starting to embrace a more diverse talent pool. From gender diversity to representation across racial, ethnic, and age groups, efforts are being made to create a more inclusive financial ecosystem. This article explores the key statistics behind these developments, illustrating both progress and challenges.
Editor’s Choice: Key Diversity Statistics in Finance
- Women make up 52% of the finance industry’s workforce, yet hold only 23% of executive positions globally.
- In 2023, Black professionals represented just 7% of the US finance workforce, a slight increase from 6.5% in 2022.
- Latinx individuals accounted for 9% of US financial services employees in 2023, with modest growth from previous years.
- Only 3% of financial executives identify as LGBTQ+, underscoring the lack of diversity in leadership across underrepresented groups.
- Age diversity is gaining importance, with 35% of financial firms citing it as a priority in their 2024 diversity and inclusion goals.
- A study in 2023 found that firms with diverse boards are 43% more likely to see higher profits.
- 92% of Fortune 500 finance companies have implemented diversity initiatives, but the impact remains to be fully measured.
The Current Diversity Landscape in Finance
- Diverse representation across gender, race, and ethnicity has improved by just 2% in the past decade in the US finance sector.
- 53% of financial institutions are now making diversity metrics a part of their performance reviews.
- Globally, women occupy only 17% of senior leadership roles in finance, reflecting a gender imbalance at the top.
- Despite growing awareness, financial firms in Europe have made only 1.6% progress in diversifying their leadership teams in 2023.
- Millennials now make up 40% of the global financial workforce, but age-related biases still hinder promotions for this group.
- In 2023, the largest percentage of women in finance was seen in retail banking at 45%, whereas investment banking lags at 19%.
- 88% of professionals in a 2024 survey reported that they believe diversity enhances innovation in finance, but just 27% believe their company is doing enough to foster inclusion.
| Category | Statistic |
| Increase in diverse representation | 2% |
| Diversity in performance reviews | 53% |
| Women in senior leadership roles globally | 17% |
| Progress in European leadership diversity | 1.6% |
| Millennials in the global finance workforce | 40% |
| Women in retail banking | 45% |
| Belief in diversity’s innovation impact | 88% |
| Belief company efforts are insufficient | 27% |
Gender Diversity in Finance
- Women hold 23% of C-suite roles in finance globally, a figure that has increased by just 1.5% since 2020.
- In the U.S., women account for 52% of the financial services workforce but occupy less than 30% of senior leadership roles.
- 40% of women working in finance report experiencing gender bias in the workplace, with 60% stating that they feel underrepresented in leadership discussions.
- The gender pay gap in finance persists, with women earning 18% less than their male counterparts in equivalent roles as of 2023.
- Women of color are particularly underrepresented, with Black women holding less than 2% of senior finance positions across major firms in 2024.
- Studies show that companies with greater gender diversity at the executive level are 15% more likely to outperform their peers financially.
- 80% of financial institutions have implemented gender diversity programs, yet only 35% of women in finance believe these initiatives are effective.
Racial and Ethnic Diversity Trends in Financial Services
- Black professionals make up just 8% of the financial services workforce in the U.S., despite representing 13.6% of the overall population.
- Latinx representation in finance reached 10% in 2023, but growth has been slow, increasing by just 0.5% over the past five years.
- Asian Americans are overrepresented in entry-level positions but underrepresented in leadership, holding only 4% of executive roles in the finance industry.
- In 2024, financial firms in the UK reported that 15% of their workforce identified as belonging to an ethnic minority, up from 12% in 2020.
- Native American professionals are the most underrepresented group in finance, comprising less than 0.5% of the workforce in 2023.
- Companies with racially diverse teams are 36% more likely to financially outperform those with less diversity, according to a 2023 McKinsey study.
- Despite progress, 65% of minority employees in finance report feeling overlooked for promotions compared to their white counterparts.
| Category | Statistic |
| Black professionals in the US workforce | 8% |
| Latinx professionals in the US workforce | 10% |
| Asian American executive representation | 4% |
| Ethnic minorities in the UK finance workforce | 15% |
| Native American professionals in finance | 0.5% |
| Racially diverse teams outperform | 36% |
| Minority employees overlooked for promotion | 65% |
Benefits of Age Diversity in Asset Management
- Age diversity in asset management has become a key focus, with 25% of firms reporting efforts to create multi-generational teams in 2024.
- Millennials and Gen Z now represent 45% of the asset management workforce, pushing for changes in corporate culture and innovation.
- Age-diverse teams in asset management firms have been found to generate 18% higher profits due to a blend of experience and new ideas.
- By 2024, over 30% of financial advisors will be over the age of 60, raising concerns about succession planning and talent retention.
- Intergenerational mentorship programs are now in place at 60% of financial firms, helping bridge the gap between senior professionals and younger employees.
- 45% of millennials in asset management believe their age has negatively impacted their career progression, particularly in leadership roles.
- Asset management firms with age-diverse leadership teams have seen a 27% increase in client satisfaction compared to those with less diversity.
Challenges in Recruiting and Retaining Diverse Talent
- 42% of financial firms report that they struggle to recruit diverse talent due to a lack of diverse candidates in the talent pool.
- In a 2023 survey, 55% of diverse candidates said they were discouraged from applying for finance roles due to the industry’s reputation for exclusivity.
- Retention rates for minority employees in finance remain low, with one-third leaving within the first two years, citing a lack of career growth opportunities.
- 48% of financial institutions identified unconscious bias in hiring and promotions as a key barrier to improving diversity.
- Despite efforts, 60% of diverse employees feel that mentorship programs in finance are insufficiently tailored to their needs.
- The turnover rate for women of color in financial services is 20% higher than for white men, highlighting ongoing challenges in inclusion and support.
- Only 18% of finance firms have dedicated programs for developing leadership skills among underrepresented groups, contributing to the lack of diversity at the top.
| Category | Statistic |
| Firms struggling to recruit diverse talent | 42% |
| Diverse candidates discouraged by exclusivity | 55% |
| Unconscious bias in hiring and promotions | 48% |
| Mentorship programs insufficient for diverse employees | 60% |
| Turnover rate for women of color | 20% |
| Firms with leadership programs for minorities | 18% |
Organizations Promoting Diversity in Finance
- The National Association of Securities Professionals (NASP) has been at the forefront of promoting diversity in the finance industry since its founding in 1985.
- 100 Women in Finance, established in 2001, works to advance gender diversity by supporting women through education and networking initiatives.
- The Association of Latino Professionals for America (ALPFA) continues to advocate for greater Latinx representation in finance, with a focus on leadership development.
- The Financial Services Pipeline Initiative has been instrumental in increasing Black and Latinx representation in finance in the Midwest, with significant growth in Chicago.
- The CFA Institute’s Diversity, Equity, and Inclusion Code, launched in 2021, encourages firms to commit to measurable diversity improvements, and over 200 firms have signed on.
- Out Leadership, a global LGBTQ+ business network, partners with finance companies to promote inclusion for LGBTQ+ employees in the industry.
- The CEO Action for Diversity & Inclusion initiative, with over 2,000 signatories, continues to shape corporate policies that enhance diversity in the financial sector.
The Benefits of Diversity to Business
- Diverse teams are 35% more productive than less diverse ones, according to a 2024 report by the Boston Consulting Group.
- Companies with diverse leadership see 19% higher revenue, especially in innovation-driven industries like finance.
- 80% of financial services executives believe that diversity leads to better decision-making and risk management.
- A 2023 McKinsey report found that firms with gender-diverse executive teams are 25% more likely to outperform their peers.
- Companies ranked highly for diversity are 2.3 times more likely to be seen as a great place to work by employees, improving overall retention.
- Financial firms with diverse workforces report a 29% increase in client satisfaction and loyalty.
- Diverse investment teams outperform their non-diverse counterparts by generating 2% higher returns annually, according to a 2024 study.
| Benefit | Statistic |
| Diverse teams’ productivity | 35% more productive |
| Higher revenue from diverse leadership | 19% more revenue |
| Executives’ belief in diversity’s benefits | 80% of executives |
| Gender-diverse executive teams outperform | 25% more likely to outperform peers |
| Diverse workforces and client satisfaction | 29% increase |
| Diverse investment teams’ returns | 2% higher annual returns |
Government and Corporate Initiatives Promoting Inclusion
- The U.S. Securities and Exchange Commission (SEC) introduced new rules in 2023 requiring publicly traded companies to disclose their board diversity data.
- In 2024, 73% of financial firms reported compliance with diversity targets set by the European Commission’s Corporate Sustainability Reporting Directive.
- The UK’s Financial Conduct Authority (FCA) has mandated diversity and inclusion strategies for financial services firms, with a focus on senior leadership representation.
- California’s Board Diversity Act mandates that corporations based in the state have at least one woman and one person from an underrepresented group on their boards by 2025.
- The Federal Reserve continues to push for greater diversity among its leadership and decision-making roles, with 30% of new hires in 2024 coming from minority backgrounds.
- Goldman Sachs announced in 2020 that it would no longer take companies public unless they had at least one diverse board member, and this threshold increased to two members in 2024.
- JP Morgan Chase committed $30 billion toward racial equity initiatives in 2021, with measurable progress reported in 2024, including $15 billion in loans to underserved communities.
Investor and Government Actions
- Institutional investors representing over $4 trillion in assets have committed to promoting diversity through their voting policies on board elections in 2024.
- The 30% Club, a campaign aimed at achieving 30% female representation on corporate boards, has gained traction in the finance industry, influencing 40% of board appointments in 2024.
- State Street Global Advisors introduced a voting policy in 2023 to vote against boards that do not meet diversity expectations, with results already being seen in 2024.
- BlackRock, one of the world’s largest asset managers, now holds annual accountability meetings to review its portfolio companies’ progress on diversity.
- The U.S. Department of Labor launched its Financial Services Diversity Initiative in 2022, which continues to provide grants to companies meeting diversity and inclusion targets.
- Global investors are increasingly using Environmental, Social, and Governance (ESG) criteria to assess diversity metrics in finance, with 68% indicating they will vote against non-diverse boards in 2024.
- Government-backed venture capital funds have earmarked $1.2 billion to support minority-owned startups in the financial technology sector by 2025.
Recent Developments in Diversity Efforts
- In 2024, over 60% of financial services firms in the U.S. and Europe reported measurable progress in gender and ethnic diversity initiatives.
- A new trend in 2023-2024 is the rise of diverse task forces within firms, designed to address bias in real time and report directly to executive leadership.
- Remote and hybrid work models, popularized during the pandemic, are credited with improving diversity in hiring, as 32% of new hires in 2024 were from underrepresented groups.
- Diversity, equity, and inclusion (DEI) roles have expanded, with 76% of financial firms now having dedicated teams in 2024, up from 54% in 2020.
- Artificial Intelligence (AI) tools are increasingly being used in recruitment to reduce bias, with 45% of finance companies implementing such tools in 2024.
- Flexible work policies introduced in 2022 have helped retain women and minority employees, with 80% of firms reporting increased retention of diverse talent in 2024.
- Public accountability has become a focus, with 78% of financial institutions publishing annual reports on their progress toward diversity goals as of 2024.
Conclusion
As the finance industry evolves, diversity and inclusion are no longer optional—they are business imperatives. The statistics from 2024 show progress, but they also reveal the challenges that remain in creating a truly inclusive environment. Firms that embrace diversity will not only enhance their financial performance but also foster innovation, build stronger teams, and create a more equitable industry for all. The data suggests that while efforts are being made, the journey toward full inclusion in finance is far from over, but the future looks promising.
Sources
Barry Elad
Barry Elad is a dedicated tech and finance enthusiast, passionate about making technology and fintech concepts accessible to everyone. He specializes in collecting key statistics and breaking down complex information, focusing on the benefits that software and financial tools bring to everyday life. Figuring out how software works and sharing its value with users is his favorite pastime. When he's not analyzing apps or programs, Barry enjoys creating healthy recipes, practicing yoga, meditating, and spending time in nature with his child. His mission is to simplify finance and tech insights to help people make informed decisions.
