COMPANIES that embrace diversity and inclusion (D&I) are better poised to cater to a diverse consumer base, according to the Financial Conduct Authority (FCA).
In a recent diversity and inclusion webinar by FCA, Sheldon Mills, executive director of consumers and competition of FCA, highlighted the significance of fostering an inclusive workplace.
Mills said: “When firms have a healthy culture and have diversity of thought at all levels, staff feel more able to raise concerns and speak up. It’s about psychological safety.
“This makes firms better equipped to tackle groupthink, improve decision making, and ultimately strengthen risk management.”
Furthermore, Mills explained that this approach equips companies to combat groupthink, enhance decision-making processes, and strengthern risk management. It also enables the early identification and resolution of issues before they escalate into regulatory breaches, thereby safeguarding consumer protection, market integrity, and healthy competition.
He additionally said that when firms are embracing D&I perspectives and ensuring that all voices are heard, they are more likely to create and offer innovative products and services.
Moreover, the level of diversity and inclusivity within a company significantly influences its ability to understand and cater to the diverse needs of its customers.
Mills referenced the findings of the recent Financial Lives survey, which highlighted unequal outcomes and access barriers faced by consumers from minority groups.
He emphasised the importance of broadening the talent pool within the UK’s financial services sector and how proposals to increase D&I can unlock talent from individuals with underrepresented characteristics, thus enhancing the sector’s reputation.
Ultimately, Mills stressed that the FCA’s goal is to help companies develop healthier cultures, reduce groupthink, tap into new talent, encourage innovation, and gain a deeper understanding of their diverse customer base.
He noted that their approach is flexible and tailored to individual firms, acknowledging the variations in size and local demographics.
Gareth Truran, the prudential policy director at the Bank of England, offered the Prudential Regulation Authority (PRA)’s perspective, highlighting the link between improved diversity and inclusion outcomes within firms and the PRA’s primary statutory objectives.
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