Reframing inclusion in financial institutions has become a priority in response to recent backlash against diversity initiatives. Across the banking sector, steps are being taken to realign with progress. ‘Diversity to me is diversity of thought’, according to Souâd Benkredda, member of the board of managing directors at DZ BANK. ‘If you eliminate perspectives, this will ultimately influence your results, performance and customer experience in a negative way.’
OMFIF’s Gender Balance Index has tracked diversity in senior leadership at commercial banks since 2021. As fundamental components of the global financial architecture, who leads these institutions matters. However, the sector remains ‘far away’ from achieving true diversity of thought – a fact reflected in the average GBI score for commercial banks which is 42, not even halfway to parity.
To this end, current diversity initiatives serve as necessary stepping stones. ‘What we currently define as diverse groups is just the means to help us simplify the fact that we actually need diversity of thought,’ she explains. This is particularly relevant in commercial banking, where pipeline challenges and leadership barriers persist despite progress in entry-level roles.
Support systems are key to retention
For a group of institutions that have been working on diversity and inclusion efforts for the better part of the past decade, the results have been slow to materialise. Only seven of the 50 banks covered in the GBI are led by women. More broadly, 21% of all C-suite staff are women, which is far lower than the 30% that is widely recognised as an acceptable target. So what are the main barriers?
The ‘childcare tax’ is often cited as the main barrier, referring to how women’s career progression is limited by their care duties and responsibilities. However, the environment and culture of the workplace might play an equally, if not more important role. ‘If you have a supportive environment, then you might take on the higher burden of balancing both motherhood and work,’ Benkredda explained. Drawing from her personal experience as a mother of twins, she credits her former employer, Deutsche Bank, for creating a supportive culture that enabled her six-month maternity leave and successful return.
She spoke about practical measures like providing confidential maternity coaches and empowering women to make their own choices about returning to work, adding: ‘I felt the organisation wanted to work on making my return successful, and that makes a huge difference.’
Leading by example
Role models are also equally important. Having senior leaders, both men and women invested in fostering an inclusive culture is key. As she notes, ‘each of us should be and is a role model, regardless of gender, because you lead by example’.
Now serving on the board of a major German bank, Benkredda views her appointment as a statement of the institution’s progressive direction. ‘I’m blessed to be able to contribute through my own hiring, but also by simply being there myself, because that attracts talent who see an African, Arab woman in leadership.’
When asked about coaching and mentoring opportunities more generally, she acknowledged the value of mentorship, but emphasised the greater importance of sponsorship for career advancement. ‘I am more on the sponsor side’, she stated, warning that mentorship programmes risk becoming ‘tick-box exercises’ without careful implementation. On the other hand, sponsorship can be more meaningful in fostering effective, work-oriented pillars of support.
The journey towards genuine diversity in commercial banking is complex. What it boils down to fundamentally is an embracing of different perspectives. This will require a cultural transformation that not only values individual potential, but also challenges traditional barriers and welcomes diverse voices to shape the conversation.
Arunima Sharan is Senior Economist, Economic and Monetary Policy Institute, OMFIF.
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