Diversity in financial services management up only slightly: GAO

There was only a slight increase from 2007 to 2020 in the percentage of women and minorities working in management positions in the financial services industry, the U.S. Government Accountability Office said in a report released Tuesday.

U.S. Equal Employment Opportunity Commission data for 2007-2015 showed that for senior management positions, Asian representation increased to 5% from 4%. Black and Hispanic representation remained about 3%, and female representation remained around 29% for the period, according to the report.

Meanwhile, EEOC data for 2018-2020 showed representation for both minorities and women was relatively flat or increased only marginally, the report said. 

Black and Hispanic representation remained at about 3% and 4%,  respectively, while female representation increased to 32% from 31% during that period.

A GAO study of diversity efforts by the Federal Home Loan Banks, Fannie Mae and Freddie Mac found that challenges in improving diversity included high levels of competition for diverse talent and bias in selecting services providers, with a preference for larger companies with brand recognition.

It said key practices to address these challenges include conducting targeted outreach and communicating diversity and inclusion priorities and goals within the organization.