Diversity Analysis: USA

(Banking, Financial Services and Insurance Industry)

Draup Point of View

November, 2018

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What the leaders

in BFSI industry

have to say about

diversity?

“For us to be successful, our men and women must reflect the diversity of the communities and cultures

in which we operate. That means we must attract, retain and motivate people from many backgrounds

and perspectives. Being diverse is not optional; it is what we must be.”

-Lloyd Blankfein CEO of Goldman Sachs

“We can make a difference one woman at a time, one relationship at a time, one mentor at a

time”

-Marianne Lake CFO JP Morgan Chase

“You can’t categorize diversity based on what a person looks like. It’s what that person

can do for the organisation”

-Charles K Poole Senior VP, internal/external communications at Citi

"When it comes to thinking about women in powerful positions, we are too often blinded by

the daggers of the mind, infected by the malignant mind bugs that mire us in the prejudices of

the past"

-Christine Lagarde IMF Managing Director

“Investing in women is an investment in the future. We work everyday in support of gender equality”

-Anne Finucane VC Bank of America

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DRAUP Methodology

1 2 3 4

Profile Identification & Data Collection

Data Analysis & Presentation

Survey & Interview Derivation of Insights

Evaluation of profile information

based on:

• Organization

• Work Experience

• Job Roles

• Gender

• Ethnicity

• Wage

• Identification of target profile

segments based on:

• Industry (analysed industries

include Banking, Financial

Services, Insurance,

Accounting, Investment

Banking)

• Current / Past Organizations

• Tenure across roles and

designations

• Collation of diversity (gender and

ethnicity) information from

Zinnov’s proprietary Talent

Module

• Survey administered to identify

and validate reasons for retention

and attrition of minority

employees

• Telephonic as well as face-to-

face interviews of industry

stakeholders to understand

strategies taken by employers to

create positive workplace

environment for minority

employees.

• Insights on talent attraction:

• Attraction drivers based on

years of experience

• Channels for talent sourcing

• Insights on reasons for attrition:

• Direct and Influencing attrition

factors across: years of

experience, role etc.

Diversity Scores

• Gender : based on female

employee % (min- 0 for <20%,

max-1 for 50% females)

• Ethnicity: based on non-white

workforce (min- 0 for <20% non-

white workforce, max-1 for 50%

non-white workforce)

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Women comprise of ~47% of the total US labour workforce, out of which ~20% represent in boards and executive position

~ 153 MnTotal US Workforce

Women

representation

Financial services Boards

Executive Position

46.9 %Women - US Workforce

Note: The represented data has been collected from multiple US government Financial Regulatory Bodies’ websites and Draup Proprietary Database updated as of Aug, 2018.

Source: Bureau of Labour Statistics historical data and labour force projections ; the data is as per December 2016

White

Black, African

Americans

Asian

78 %

12 %

Other Workforce –American Indians and Alaska Natives

Native Hawaiians

Pacific Islanders

4%

6%~ 22 %

~ 16 %

USA - Financial

Services

Ethnicity - US Workforce

~ 6.5 Mn

19.8 %Women – Boards &

Executive Position

USA - INDUSTRY WIDE

UNITED STATES

NEW YORKBOSTON

BAY AREA

CHICAGOWASHINGTON DC

Atlanta

Lincoln

AustinMiami

Los Angeles

California

San Diego

Seattle

Dallas

BFSI - Hotbeds 2018

BFSI – Emerging Hotbeds

CHARLOTTE

States with WIEP* >20%

Connecticut

Florida

Wisconsin

Maryland

MassachusettsMichigan

Minnesota

Missouri

New JerseyOhio

*WIEP – Women in Executive position

Source: Pew Research centre.

Data from Bureau of Labour Statistics historical data and labour force projections

New York and Washington DC are also among the 13 states with WIEP > 20%

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BFSI industry ranks second highest with 36% women representation out of 6.5 Mn total employed BFSI workforce in US

Media and Entertainment

Information and Communication

Technology

Healthcare

Energy

Consumer

Infrastructure

WOMEN REPRESENTATION

Note: The above analysis is based on the DRAUP’s proprietary database and primary interviews of industry stakeholdersWe have included only the top industries with high total talent. Consumer sector includes companies involved with food production, packaged goods, clothing, beverages, automobiles and electronics

Infrastructure includes Construction and Transportation

Women representation across different industries in US

ASSET MANAGEMENT

COMMERCIAL BANKING PRIVATE BANKING REINSURANCE

BFSI

FUNCTIONAL AREAS

Banking, Financial Services & Insurance

RETAIL BANKING LIFE/HEALTH INSURANCE P&C INSURANCE FINANCIAL MARKETS

TOTAL TALENT (Men + Women)

36%

16%

33%

19%

51%

24%

34% 2.5 Mn+

10 Mn+

19 Mn+

1 Mn+

2 Mn+

1 Mn+

6.5 Mn+

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METHODOLOGY

Any talent pipeline strategy should consider taking full advantage of existing workforce and such an inclusive strategy will help Banks push boundaries in Diversity goals as well

Note: The above analysis is based on the DRAUP’s proprietary database

Top BFSI Firms female employee % and non-white employee %

1. Employed Talent Scanning: Scan US

workforce of all the BFSI companies under

analysis

2. Diversity Estimation: DRAUP’s ML algorithm then predicts gender and ethnic

diversity based on name and location of the

employed talent

3. Company Analysis: DRAUP’s model then tags employee profiles to the companies

under analysis to estimate ethnic and

gender diversity

4. Result: Aggregate tagged profiles

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JP Morgan and Wells Fargo primarily employ women in their retail banking segments, hence bringing them to the top in terms of gender diversity

37%

31%

40%

37%

34%

36%

41%

41%

42%

43%

41%

44%

40%

43%

46%

47%

48%

40%

46%

45%American Express

Gender DiversityWomen Employee %

Ethnic DiversityNon-white employee %

Rank Company Score(max 2)

#1

#2

#3

#4

#5

#6

#7

#8

#9

#10

Bank of America

Citi

Jpmorgan chase & co.

Wells Fargo

Suntrust

USAA

New York Life

Insurance Company

Metlife

Capital One

1.49

1.45

1.38

1.37

1.36

1.35

1.33

1.32

1.30

1.27

Note: The score methodology has been described in the methodology slide

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Diversity patterns across job progression levels

JOB PROGRESSION

LEVEL

VP & above

Middle

Managers

Professional

Staff

Support

Staff

DIVERSITY

76% 24%

50%

83% 17%

58% 42%

67% 33%

56% 44%

58% 42%

39% 61%

61% 39%

Male Employee % Female Employee % White Employee % Non-white employee %

Note: The above analysis is based on the DRAUP’s proprietary databaseIn professional Staff we have included analysts, and associates; and similar levels across BFSI. For Support staff, we have included IT, Administration, HR etc

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Women executives have made exceptional progress in their career to reach the top and played a crucial role in shaping the culture

Joined the UN Women’s Global Innovation

Coalition for Change (GICC), whose mission is to

drive industry-wide action to accelerate the

achievement of gender equality and women’sempowerment. Founded the “Future Women in

IT” program, which aims to inspire middle and

high school girls to pursue careers in technology

and reduce the misconception that "I.T. Is not

for me". Co-led the Citi Operations &

Technology Women’s Council

Personality Inference:

➢ Achievement driven, emphasizes more on

the end results and final outcomes of their

initiatives.

➢ Yolande has achieved multiple awards and

certificates and has worked for an organization

for 7+ Years. Has remained loyal to her

profession.

Yolande Piazza

CEO, Citi Fintech, CITI

Traits:

➢ Technology Leader Humanist

Fidelity established its Women’s Leadership

Group (WLG) Employee Resource Group. The

WLG’s mission is to help women and Fidelity

thrive. The group’s goals are to provide

development opportunities to members with a

focus on “developing the whole you —professional, personal and financial.”

Traits:

➢ Challenge Driven, Adaptable and Humanist

Personality Inference :

➢ Commitment driven, do adequate research

about their clients and potentiality of the

product. They are likely to foster long-term

relationships.

➢ Abigail has worked for an organization for 7+

Years. Has remained loyal to her profession.

Shaped JPMorgan Chase's culture with

programs like ASCEND, a sponsorship

program to retain and promote female and

ethnically diverse talent. Lead JP Morgan

Chase's Women on the Move program.

Hosted events in locations where the

company employed hundreds, and often

thousands, of women. Since it began, the

program has been hosted in 23 cities and

senior women from across the company have

met with more than 6,000 employees.

Traits:

➢ Humanist, Visionary, and Challenge Driven

Personality Inference:

➢ Entrepreneurial mindset are likely to be

demanding and are constantly

challenging the status quo.

Abigail Johnson

Chairman and CEO,

Fidelity Investments

Deeply involved in Women in Tech (WIT)

initiative, lead external partnerships for WIT.

On the advisory board for Women Who

Code, collaborated on Women in Tech Allies

program

Traits:

➢ Technology Leader, Challenge Driven and

Thought Leader

Personality Interference:

➢ Achievement driven, emphasizes more on

the end results and final outcomes of

their initiatives.

➢ Jennifer has achieved multiple awards and

certificates, and has some publications on

her name.

Jennifer Manry

CTO, Workspace

Services, Bank of

America

Note: The above analysis is based on the DRAUP’s proprietary database

Mary Callahan

Erdoes

CEO, Asset and Health

Management Business,

JP Morgan

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Various inclusion policies are adopted by banks. The benefits have been classified into 4 categories namely, Development & Advancement, Industry

Benefits, Networking, & Workplace Policies.

Top financial services are enabling women to reach leadership positions and moving towards diversity reporting, noticeably making it the norm for annual reports

Development

&

Advancement

Industry

Benefits

Networking

Workplace

Policies

• Annual Global Women’sConference, Diverse Leaders

Sponsorship Program and 10

Mentorship Program.

• Tuition reimbursement, 16

week paid maternity, and

flexible work hours.

• LEAD programme, which brings

together senior executives to

advise & inspire women.

• Providing fair & equitable pay for

all employees.

• Promoting women in tech,

partnerships with Cornell Tech

& City universities.

• Maternity Programme, 14 weeks

paid leave, Maternity coaching &

a buddy programme both during

& after maternity

• SDG5, Ensuring women’s full & effective participation & equal

opportunities for leadership.

• Winning Women Program, An introductory

program for Under-Graduate women, which

provides an entry in BFSI & an overview of many

opportunities for female leadership at the firm.

• Women’s Interactive Network, provides

access to the tools that enable the successful,

development, advancement and retention of

women at all levels of firm.

• Working Parent Award, Program honours men

& women, who manage this fit with particular

flair. WIPAT/ Women Rising Program, Women

In the Pipeline & At the Top (WIPAT) helps

women to advance to highest positions.

• Tuition Assistance & paid

paternal/maternal leaves for

employees

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Diverse roles related to diversity, have evolved in the past decade, indicating considerable progress being made to understand the criticality behind losing out on a wealth of capacity

Size of the bubble indicates

number of executives

representing the roles

Democratisation of decision making - Diversity

SVP

DiversityChief

Diversity

Officer

HRs

HR Director

Chief Human

Resource OfficerDiversity

AdvisorCDO

Global

CDO

VP

Diversity

GM

DiversityDirector-

Diversity &

Inclusion

CDO

Global

CDO

GM

Diversity

VP

Diversity

VP-Customer Exp.

Talent Management & Diversity

Diversity Business Development

HR DiversityDiversity & Public Affairs

Diversity Strategy

Director of Corporate supplier

diversityDiversity Lead

Diversity officer

2010-15 2015-182000- 2010

HRs and Chief Diversity Officer, have been critical

decision makers related to diversity.

Newer roles such as VPs, SVPs and Directors share

responsibilities related to diversity.

New diversity roles emerge as women representation

increases in decision making positions

HR Director

Senior Director Diversity

Sr. Diversity Advisor

Diversity Inclusion officer

Global

Chief

Diversity

Officer

Note: The above analysis is based on the DRAUP’s proprietary database

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Apart from progress in gender diversity, top banks are equally focussing on ethnic diversity; Eastern USA regions such as New York, San Francisco Bay, Charlotte, Boston and Chicago are the most diversified regions

ME

TX

AR

LA

MN

WIMI

SC

VA

PA

DC

MT

MO

IN OH

KY

TN

FL

WV

V

T

NH

NVUT

WY

CO

AZNM

ND

SD

NE

KS

OK

IA

IL

N

J

C

T

R

I

WA

OR

CA

ID

MS

ALGA

NC

NY MA

MD

DE

Most Diversified

Least Diversified

WA – Seattle ; OR – Portland ; CA – Los Angeles ; NV – Las Vegas ; AZ – Phoenix ; ID – Boise ; MT – Billings ; WY – Cheyenne ; UT – Salt Lake city ; CO – Denver ; NM – Albuquerque ; ND

– Fargo ; SD – Sioux Falls ; NE – Omaha City; KS – Wichita ; TX – Houston ; MN – Minneapolis ; IA – Des Moines ; MO – Kansas City ; AR –Little Rock ; LA – New Orleans ; WI – Milwaukee ;

IL – Chicago ; MS – Jackson ; TN – Memphis ; KY – Louisville ; OH – Columbus ; MI – Detroit ; NY – New York ; GA – Atlanta ; SC – Columbia; NC – Charlotte ; PA – Philadelphia ; NY – New

York ; ME – Portland ; FL – Jacksonville ; NH – Manchester ; MA – Boston ; RI – Providence ; IN – Indianapolis ; WV – Charleston ; CT – Bridgeport ; NJ – Newark ; MD – Baltimore ; DC –Washington ; VA – Virginia Beach ; CE – Wilmington ; VA - Virginia Beach ; CE – Wilmington ; AL – Birmingham ; OK - Oklahoma City

900k+

NEW YORK

40%

29% 250k+BOSTON

340k+CHICAGO

32%

210k+

WASHINGTON DC

33%

120k+

CHARLOTTE

30%

360k+SAN FRANCISCO

46%

BFSI TalentNon White

%

Note: BFSI talent includes all the functions across all BFSI companies in the location

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52.3%41.2%

New York and San Francisco emerge as the top locations in terms of gender and ethnic diversity

Female % in

cityFemale Employee

in BFSI %

Non- White

% in city

Non-white employee

% in BFSI

Location

New York

Charlotte

Boston

Gender & Ethnic Diversity

Chicago

Gender Diversity Ethnic Diversity

San Francisco

Bay Area

Washington D.C

55.4%40.0%

49.1%42.3%

59.0%45.9%

52.1%44.8%

50.0%30.0%

52.0%41.8%

53.0%29.3%

51.5%42.7%

55.0%32.3%

52.6%43.7%

52.4%32.8%

Note: The above analysis is based on the DRAUP’s proprietary database

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Analysing other factors contributing to a better diversity in New York and San Francisco

HIGH

LOW

LOCATION

ANALYSIS

NEW YORK

BOSTON

CHICAGO

WASHINGTON DC

CHARLOTTE

SAN FRANCISCO BAY AREA

26

26

20

19

19

16

LOC

AT

ION

AN

ALY

SIS

DIVERSITY

San Francisco ranks on top when it comes to gender and ethnic

diversity in banking/finance institutions.

EDUCATIONAL HUB

New York, Boston and Chicago are the top finance educational hubs from where ~54% of the top banks recruit.NYU, Columbia University, Boston University, Harvard, University of Illinois, University of Chicago are the amongst the top fresh talent supply universities

PAY POTENTIAL

Analysed industry median pay across top finance job roles and

levels such as Financial Analysts, insurance underwriters, credit

analysts, actuarial analysts, accountants, bankers, IB associates,

auditors, tax managers etc.

Boston and San Francisco emerge as top locations with highest

median salary

FINANCE JOB OPPORTUNITY

San Francisco has more than 26 banking institutions, totalling

$2.28 Tn in assets, with maximum open jobs and talent.

New York is the hub of ~15 biggest commercial banks such as JP

Morgan, Bank of America, Citibank, Wells Fargo etc.

Charlotte is the third largest banking hub behind San Francisco

and New York

DIVERSITY POLICIES AND PROGRAMS

Top banks in New York and San Francisco have started initiatives

to promote gender diversity across functions. Initiatives range

from creating diversity roles to mandating diversity and inclusion

section in their annual reports.

LIVING INDEXIncludes office rental cost, restaurant prices, markets,

transportation and utilities

Note: The above analysis is based on the DRAUP’s proprietary database and primary interviews of industry stakeholders

Sum of rank in each

parameter (6 being

highest, 1 being lowest)

Index

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Case study: Ethnic diversity is being treated like a business priority by top banks such as JP Morgan, American Express

Advancing Black Leaders, an

expanded diversity strategy focused on

increased hiring, retention and

development of talent from within the

black community.

At JP Morgan by 2018 , 20% of its US workforce are

Asians, 8.7% are Hispanic/Latino and 40.5% are women,

but African Americans comprise only 9.4% of employees

and just 3% of senior executive levels.

CA

SE

ST

UD

Y

2 Years, into the initiative JP Morgan

is seeing results. A total of 97 black

managing directors emerged globally.

At American Express, various policies have

been adopted to promote ethnicity.

Asian Employee Network, develops Asian talent through professional

development activities, networking events and business innovation

seminars. It also works to build cultural awareness among all company

employees, and helps American Express become an employer of

choice for professionals of Asian backgrounds.

Black and Asian Employee Network (BAAN), is

the lead resource for promoting diversity, cultural

awareness and inclusion of Black, Asian and

ethnic minority employees at American Express

in the UK.

JP Morgan & American Express have adopted few inclusion policies, there by attracting and creating opportunities for people from

various ethnicities.

Note: The above analysis is based on the DRAUP’s proprietary database and primary interviews of industry stakeholders