Why Diversity In Finance & Business Matter

SOURCE: NABA Brand Contributor
Forbes EQ BRANDVOICE

Whether it was redlining, disproportionate denials of business loans or being charged higher interest rates, Black Americans often have been marginalized within our financial ecosystem.

But as we strive to build a more inclusive economy, it’s critical for financial institutions to nurture greater inclusion within their own ranks. Embracing diversity is now paramount for any business that wants to drive growth, win the talent war and foster better customer relationships.

For financial institutions, it’s also vital that their organizations better reflect the communities they serve. Financial companies don’t just need to embrace diversity for diversity’s sake, they must move in this direction to future-proof their business. Here’s why.

The Current Diversity Landscape in Finance
Diversity is slowly growing in the financial industry, but not fast enough. The number of Black and Latino certified financial planners (CFPs) grew by nearly 13% between 2019 and 2020, but Black professionals still only account for slightly less than 2% of all CFPs. In accounting, representation is a bit better. Black men and women make up 8.5% of certified public accountants, while there are only 37 black-owned investment and asset management firms, according to a 2021 analysis by ABFE, a membership-based philanthropic organization focused on Black communities….read full article.