In spite of the individual efforts on the part of all members of the Financial Services Pipeline Initiative, the overall representation of African-Americans and Latinos in the Chicago financial services industry has remained virtually unchanged over the past years. Nationwide representation has also remained virtually unchanged for over a decade.
Low representation of African-Americans and Latinos is a major challenge throughout the U.S. financial services industry, but is especially evident in the Chicago metropolitan area. While the 2013 U.S. Census estimates show significant diversity in the overall population, 2013 data released by the Equal Employment Opportunity Commission (EEOC) shows a financial services workforce that is not reflective of this diversity. The differences in representation are even more acute at the highest levels of financial organizations (C-suites), according to data from the EEOC. The chart below details these observations by offering a comparison of ethnic representation for the Chicago metro area, its financial services sector, and three key job categories within it. i
The representation of African-Americans and Latinos in the financial sectors has remained stagnant since 2009 in the Chicago area despite all the Diversity & Inclusion efforts that financial services firms have individually undertaken. Recognizing that this lack of diversity has a negative impact on the competitiveness and equity of the Chicago region, and on the organizational cultures and financial firms’ “bottom lines,” a group of Chicago-based financial institutions joined forces with The Chicago Community Trust—the region’s community foundation—to form the Financial Services Pipeline (FSP) Initiative in 2013. Today, the FSP Initiative members represent collectively more than 30,000 leaders and professionals in Chicagoland’s financial industry – close to 50 percent of the total Chicagoland financial industry population.
Two key goals of the FSP Initiative are:
- Increasing the representation of Latinos and African Americans, at all levels, within the Chicago area financial services industry
- Improving the overall cultural competency within the Chicago area financial services industry
To learn more about gaps in the representation of African-Americans and Latinos in the financial services sector, click on the reports below.
- Financial Services Pipeline Initiative 2014 Index
- GAO Report – Diversity Management, Trends and Practices in the Financial Services Industry and Agencies after the Recent Financial Crisis
- GAO Report – Financial Services Industry, Overall Trends in Management-Level Diversity and Diversity Initiatives, 1993-2008
i The FSP Initiative focuses on the following EEOC categories: (1) “Executive/Senior Level Officials and Managers:” these individuals reside in the highest levels of organizations and direct or coordinate activities with the support of subordinate executive and staff managers, e.g. chief executive officers, chief operating officers, managing partners, etc.; (2) “First/Mid-Level Officials and Managers:” these individuals serve as managers and receive directions from the Executive/Senior Level Officials and Managers, including those who report to middle managers, e.g. regional vice presidents, information system managers, branch managers, etc.; (3) “Professionals:” Most jobs in this category require bachelor or graduate degrees, and/or professional certification, such as accountant, economist, auditor, etc; (4) “Technicians:” these jobs include activities that require applied scientific skills, usually obtained by post-secondary education; and (5) “Sales Workers:” these jobs include non-managerial activities that wholly and primarily involve direct sales; e.g. brokers, sales agents, etc. For the purposes of this Index, “Professionals,” “Technicians” and “Sales Workers” have been aggregated under one category that combines the three of them. When considered as a whole, the financial services industry includes all EEOC job categories within it, i.e., the five mentioned above plus the following: “Administrative Support,” “Craft Workers,” “Operatives,” “Laborers and Helpers,” and “Service Workers.” Detailed classification of EEOC job categories can be found at Detailed classification of EEOC job categories.