3 ways banking can use data to transform DEI initiatives
To make banking a more diverse and inclusive sector, data can be utilized to understand where the gaps are and how to address them. By using data-driven insights, banks can create targeted approaches that will help to improve DEI initiatives. Data can also be used to monitor progress and ensure that these initiatives have the desired impact. As a result, banks can take positive steps towards transformation in this crucial area by leveraging data.
The banking sector has been lagging in diversity, equity, and inclusion (DEI) initiatives.
The banking industry has been lagging behind as we witness continued momentum in Diversity, Equity, and Inclusion (DEI) initiatives across sectors. Despite increasing awareness of DEI's importance and numerous speeches from leadership touting their commitment to this mission, DEI initiatives have mainly been lacking within banking. Complacency enables culture systems rooted in bias and a lack of action toward more excellent representation and equitable policies for diverse populations. Until leaders take the helm and make concerted investments in DEI, meaningful change will continue to elude this industry. It's time for banking's leadership to commit and capitalize on Diversity, Equity, and Inclusion initiatives to lead by example.
Data can help banks better to understand the needs of their customers and employees and to design targeted programs that will make a real difference.
Banks have a great opportunity to use diversity and inclusion data baselines, combined with user-friendly scorecards, better to understand the needs of their customers and employees. Such understanding can then be used to design targeted programs that make a real difference in how institutions promote diversity and inclusion, provide financial services, hire talent, develop leaders in their leadership cad, and more. Banks that take advantage of data-driven insight are well-positioned to ensure an equitable environment for all involved.
Here are three specific ways that data can be used to transform DEI initiatives in banking:
According to John P. Kotter, data can play a pivotal role in transforming DEI initiatives in banking. By paying close attention to performance metrics and tracking key performance indicators, companies can track which initiatives lead to positive outcomes, allowing them to optimize their DEI efforts performance-wise and stay ahead of the competition.
Identifying DEI Gaps
Data can help banks identify where they have gaps in their DEI initiatives. For example, by analyzing the demographic makeup of their workforce, banks can identify areas where they may need to focus on hiring more diverse candidates. They can also use data to track the success of their DEI initiatives over time and make adjustments as needed.
In addition, data can help banks identify any disparities in access to financial goods and services. For example, banks can identify discrepancies between different groups by analyzing loan approvals and denials data. This can help banks develop targeted strategies to address these disparities and ensure all customers have access to financial products and services equally.
Building Inclusive Products and Services
Data can also help banks build more inclusive products and services. By analyzing customer behavior and preferences data, banks can identify opportunities to create products and services that better meet the needs of diverse customer segments. This can help banks attract and retain customers from different backgrounds, ultimately driving business growth.
For example, data can help banks identify language preferences among their customer base. This can help them create products and services in multiple languages, making it easier for customers who speak languages other than English to access financial services.
Creating a More Diverse and Inclusive Culture
Finally, data can help banks create a more diverse and inclusive culture. By analyzing employee feedback and engagement data, banks can identify areas where they may need to improve their culture. For example, if employees from specific backgrounds report feeling excluded or undervalued, banks can use this data to develop targeted strategies to address these issues.
Data can also help banks identify areas where they may need to provide additional training or support to their employees. For example, suppose data shows that employees from certain backgrounds are underrepresented in leadership roles. In that case, banks can provide targeted training and development opportunities to help these employees advance in their careers.
Conclusion
Data can be a powerful tool for banks looking to transform their DEI initiatives. Using data effectively, banks can identify gaps in their initiatives, build more inclusive products and services, and create a more diverse and inclusive culture. However, banks need to ensure that they collect and analyze data responsibly and ethically and use data to support their DEI goals rather than as a substitute for real action. Banks can create lasting change and drive meaningful progress toward greater diversity, equity, and inclusion by combining data with other strategies, such as employee training and development and community engagement.
Taking proactive steps to incorporate diverse perspectives into decision-making processes, developing solutions that specifically address customer needs, and researching workplace dynamics can help banks revolutionize their DEI initiatives.
We hope that by understanding data's critical role in transforming DEI efforts, actors at all levels of the banking industry can come together to create a more equitable sector where everyone has access to opportunity. So if your diversity programs aren't exceeding your expectations – let's chat – we're here to help!
Image courtesy Milad Fakurian @fakurian
About Leslie
Senior Client Partner, Leadership & Culture Transformation
Leslie Weinberg is a Senior Client Partner in Woods Kovalova Group’s Consulting practice. She works with clients to design and implement talent and organizational solutions, and she is an executive coach to many C-level leaders. Leslie has spoken on topics including diversity and inclusion, talent transformation, and DEI strategies locally and internationally. She is a founding member of the Diversity Alliance for Science, and holds a Master’s Degree in Organizational Psychology. Leslie is passionate about inspiring others to create meaningful change within their organizations. T