Fintech
How to manage resistance to implementing DEI initiatives in the Fintech sector?
This June on The Fintech Times, we’re focusing on diversity, equity, and inclusion (DEI). No longer just a trending topic, but an essential consideration for not only your business operations, but your offerings, this topic seems more relevant than ever.
The fintech sector is known for its innovative and agile reputation, yet it still faces a significant diversity problem that threatens to stunt its growth and halt the innovation movement.
Despite the need for diversity initiatives, some companies (or even just some executives) may be reluctant to change. We spoke with several industry members to learn how to handle any resistance to DEI.
Reformulate perspectives
Ron J. Williams, partner at Venture Studio, Co-created, She said:
“If you’re experiencing resistance to DEI initiatives, you need to reframe the perspective of those around you. Most organizations tend to think of DEI as a charitable act or a department within an organization that is a subset of HR. Truly finding ways to build and innovate inclusively is a much broader issue and should be part of any company’s overall growth strategy. Serving new markets with new models should be the ambition of every company that aims to fuel “good growth”—that is, growth that also has an impact. Aiming for good growth is a smart business, not a distraction or a diversion.
“Bringing diverse perspectives to the table to create better products is smart. Targeting new markets to serve traditionally commercially marginalized populations is a sizable business opportunity. Combining the two is a winning strategy. Smart leadership is taking the lead towards impact and inclusion as key features of its business growth models.”
Competitive advantage
Beautiful Renney, Product Director at Liberis, an embedded financial platform, he said:
“You have to frame it as an explicit competitive advantage with material revenue impacts, such as attracting talent. Once people, especially executives, understand the benefits to the company and to themselves, it’s obvious they’ll get on board and become advocates themselves.”
“At Liberis, we do a semi-annual baseline survey that allows us to be intentional about data collection during onboarding. We also have a Diversity, Inclusion, and Belonging Council made up of seniority members from across the company. To join the council, you need to submit a short application to demonstrate commitment and genuine interest. This group is passionate, dedicated, and all about action. Instead of sitting around talking about ideas, they execute on projects to improve our business from the inside out.
“To ensure that all of our executives are engaged and informed about our DEI initiatives, we have a rotating executive team member on the board. So far we have had the Chief Risk Officer and the Chief Operating Officer and our CFO will be active in the next quarter!”
Active champions
Motie door, CEO of PPRO, a payment service provider, said:
“Resistance to change can come in many forms, from passive disengagement to active rejection, negatively impacting hiring practices, company culture and DEI strategies. Resistance can often stem from a variety of factors, including fear, skepticism or, most commonly, misunderstanding. Fintech leaders have a responsibility to shape organizational culture from within, and it is essential to have leadership that not only endorses these efforts, but actively supports them. Leaders must be vocal advocates for diversity and inclusion, both in words and in action. This starts with setting an example and demonstrating a commitment to DEI principles from the top.”
“My job is to help people embark on the journey in any way I can, without ever regretting it. I use my personal experiences to promote the need for DEI initiatives, as well as to demonstrate that when done right, it is very positive for businesses and society at large.”
True value
Betsy Samuel, marketing manager at payment issuer processing partner, Thredd, She said:
“We believe that team diversity brings real value to our organization; therefore, we have seen very little resistance to these initiatives. We are fortunate that some of our Thredd team members are open about their DEI experiences and perspectives. This buy-in and personal authenticity is essential to success, especially at the top of the organization. When leaders model the right DEI behaviors and share their experiences with their peers and the broader organization, the challenge of being more diverse becomes much more personal, and individuals embrace the changes to support their colleagues.
“It is also good to focus on some DEI initiatives and create quantitative and qualitative measures with which to evaluate and integrate them successfully; rather than trying to do everything at once. Using anonymous peer surveys allows you to collect more data and target your DEI strategy accordingly, ensuring that it continues to focus on what is most relevant and important to your peer makeup, whilst continuing to ensure that your selection methods are different.”
Walk as you walk
Justin Crastonresponsible for social values at The Dojo, A credit card terminal supplier said:
“The rapid pace at which technology companies develop can pose challenges in implementing DEI initiatives. Diversifying application channels, rebuilding existing practices and processes to be more equitable, and taking the time to listen to diverse perspectives takes time, which can conflict with competitive market demands. Taking the time to develop mutual awareness and understanding is critical, and teams often need to be unlearned or reset as a company matures beyond the initial growth phase.
“It’s also important to recognize that many of your practices will not be sufficiently inclusive, and that most workplaces are designed and built by a majority that automatically excludes. Knowing this will help you be receptive to change and inform your approach to implementing and developing an effective DEI strategy.
“Tech companies have also been seen to be de-prioritizing or ‘quietly abandoning’ some DEI efforts. It’s too easy to make a compelling statement, demand awards and make commitments, but without your individual function leaders crafting tangible goals, these ambitions will remain just wishes. Create non-financial KPIs. Address your inclusion issues when you bring them up. Walk.
Culture of diversity
Priya Giuliani, CEO at Identification of the Earth, a decentralized identity platform, said:
“EarthID takes a strategic and empathetic approach to instilling a culture of diversity, equity, and inclusion within the organization. Our leadership actively demonstrates their commitment to DEI. By participating in and visibly supporting DEI initiatives, our leadership sets the tone for the entire organization, demonstrating that DEI is a top-down priority.
“We ensure that the purpose and benefits of DEI initiatives are clearly communicated to all employees. This includes explaining how these initiatives align with EarthID’s mission and values and how they contribute to the company’s overall success and innovation.
“We identify and empower allies and advocates within the organization who are passionate about DEI. These individuals help champion DEI initiatives, provide support to their colleagues, and model inclusive behavior.”
Take care of yourself
Alessandra Chirica, founder of recruiting company, Find again, She said:
“Previously, at my recruitment firm, I helped fintechs and start-ups hire staff for their financial crime fighting functions. Unfortunately, I’ve often had to ask CEOs and founders point blank, “Is your priority diversity or filling the role?” They often asked for a “female” CV as the icing on the cake. But they didn’t really care, nor did they create an inclusive environment (i.e. no flexible working, 5 times a week in the office, but that’s okay because they offered Delivery lunch credits…)
“It’s no surprise that many women didn’t find the offer so appealing and natural that they didn’t want to present it.
“I decided to stop working with the client. I guess it was the quickest way to deal with the resistance!”
