In the two weeks before International Women’s Day on 8 March, there was a cruel irony that many leading US banks felt compelled to publicly row back on commitments to diversity and inclusion.
The truth is they had little choice. An early executive order from the new Donald Trump administration terminated diversity, equity and inclusion programmes in the public sector, calling them ‘radical and wasteful’. Roles such as ‘chief diversity officer’ would no longer be tolerated. More pertinently for the leaders of the US’s private sector, including its leading banks, lucrative government contracts may no longer be awarded to businesses that prioritise such programmes.
First out of the blocks was Citi, famously the bank that appointed the first female leader of a major US bank, discarding any ‘aspirational representation goals’, and rebranding DE&I to ‘talent management and engagement’. Others quickly followed suit: Bank of America’s annual report added new language about creating an ‘inclusive environment’, while JP Morgan Chase scaled back on spending initiatives that its Chief Executive Officer Jamie Dimon saw as a ‘waste of money’, though kept references to DE&I in its annual report. Wells Fargo discontinued diversity requirements for senior roles – which previously required 50% diverse candidates, and scrapped training programmes.
Another irony of this situation is that for more than a decade US banks have been far more proactive than most of their global peers in promoting diversity, and in particular senior female representation. They did not just create DE&I teams, the heads of those teams often reported directly to the chief executive. Many of those chief executives reinforced their commitment in public statements, and often trumpeted their achievements. The programmes they put together were real, and typically very well attended. Senior executives – both male and female – were strongly encouraged to mentor diverse future leaders with star potential.
Reflecting on progress
So International Women’s Day 2025 seems an ideal point to reflect on what these initiatives and programmes have actually achieved. For more than a decade, OMFIF’s Gender Balance Index has tracked senior female representation in global financial institutions. Since 2021, the index has included analysis of the number and seniority of women in C-Suite, executive committee and board level positions among a curated group of 50 commercial banks.
When this analysis started, US banks were clear global leaders. The average score of eight US banks in the index was 41; the average score of 42 other banks was 28. In the 2024 index, the average US bank score remained unmoved at 41; non-US banks had risen to 37.
Looking at individual banks, the picture is disappointing. The 2025 index, which will be launched on 16 April, shows that JP Morgan remains a clear leader, its score of 76 ranking it third among all global banks. By contrast, Citi’s score – despite the promotion of Jane Fraser to CEO – has fallen from 57 in 2022 to just 33 in 2025. The scores of Bank of America and Wells Fargo have also declined; in Bank of America’s case, its ranking has fallen dramatically from 10th to 33rd.
We know from numbers published by many of these banks that female representation in the executive layers just below ExCo level have improved. Sadly, it is unlikely we will be able to track that progress in the future.
But the crucial question today is: have the policies, quotas, initiatives, teams, investment dollars and leadership focus on DE&I of the recent past truly ingrained in the DNA of these institutions not just the benefits of diverse leadership groups, but also the opportunity for women to actually be appointed to these roles? To boil it down to its most fundamental level: have these institutions been ‘de-biased’?
Adapting to the new environment
Clearly this is a very challenging time for those talented and committed professionals who have devoted a chunk of their careers to improving female representation. Those who remain in situ – even if with a new title – will have to adapt their approaches to the new environment.
But don’t expect them to just throw in the towel. More than 50% of graduates joining big US banks were women last year, says one DE&I leader. There is nothing to stop banks having programmes that appeal more to women, such as returning to work or even coping with menopause.
In the end, it will be up to the people and the culture of each institution. Many senior women in finance that OMFIF has spoken to over the past decade are quick to recognise the role that higher-ranking colleagues played during their careers as sponsors and mentors, many of them men. And while US banks may no longer publish their own data on diversity, no executive order will prevent OMFIF from reviewing their progress through the Gender Balance Index.
Clive Horwood is Managing Editor and Deputy Chief Executive Officer of OMFIF.
Register to attend the launch of OMFIF’s Gender Balance Index 2025 on 16 April.
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