Fintech
Why is diversity and inclusion important in Fintech? The vision of the sector with Finastra, NMI
This June at Fintech Times we will focus on diversity, equity and inclusion (DEI). No longer just a trending topic, but an essential consideration not only for your business operations but also for your offering, this topic seems more relevant now 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 movement of innovation.
Here we speak to fintech leaders to understand the true importance of DEI and why fintechs need to incorporate it into everything they do.
Underrepresentation
Kate Hampton, Chief Strategy Officer at an integrated payment solutions provider NMI, said: “Having worked in the technology and payments industry for nearly two decades, I have gained a deep understanding of the critical importance of addressing DEI within the fintech sector. Women in fintech are still significantly underrepresented, especially at the highest levels, and I often found myself being one of the few, if not the only, women in high-level meetings and discussions. I had a very positive experience, supported by numerous mentors who encouraged me to dream big, however I recognize that many women in fintech do not share the same journey. That’s why it’s important for me to serve as a mentor and set an example for other women in the industry.
“Fintech organizations must actively support and uplift women by creating enrichment opportunities, establishing mentorship programs, and providing a safe space for those seeking support and guidance. Supporting women in fintech can lead to significant changes in the tech workforce, encouraging organizations to prioritize DEI efforts. This change needs to be championed by board members and senior executives, ensuring it starts at the top. The fintech sector has immense potential, and intentional DEI efforts will lead to success for both organizations and their employees. Diversity at all levels undeniably creates better business outcomes, and success in DEI outcomes will also benefit fintech as a whole.”
The right thing
Tyler Menezes is the executive director of CodeDaywhere she works to provide welcoming and diverse opportunities for underserved students to explore a future in technology.
He said: “For fintech companies, DEI is not just about doing the right thing, it is also a strategic advantage. Embracing different perspectives can unlock new market segments.
“At CodeDay, we focus on helping students from diverse and low-income backgrounds find their place in the tech industry. Conversations with our students often reveal how their financial experiences are different from mine. For example, approximately 25% of low-income households do not use traditional banking services. Many of our alumni have gone on to careers in fintech, where they help develop more inclusive products that appeal to a broader customer base.
“Most fintech products aim to serve a global and diverse audience. Teams that reflect this diversity are better positioned to understand and meet the specific needs of various demographic groups.”
A moral imperative
Michael Bystrovdirector of revenue at Node, an open banking payments platform, said: “DEI is essential for companies like Noda in the fintech sector as they drive innovation and creativity. At Noda, our team is made up of people from around the world, who bring a wealth of diverse perspectives that are crucial to developing innovative solutions in open banking. This global diversity allows us to better understand and meet the needs of a global customer base, enhancing our competitiveness and reach.
“Additionally, an inclusive workplace increases employee morale and engagement, leading to higher productivity and lower turnover rates, which are vital to maintaining high performance in a rapidly changing industry.
“DEI compliance helps Noda meet regulatory standards, improving its reputation and ability to attract partnerships, investments and talent. Furthermore, membership in DEI underlines Noda’s commitment to social responsibility, in line with his role in promoting fair practices and contributing to a more inclusive financial ecosystem. Overall, DEI is not only a moral imperative but a strategic advantage that promotes innovation, workforce stability and social impact, essential to the success of any fintech company operating in today’s dynamic financial landscape.”
Finance forever
Simone ParigiCEO at a financial software company Window said: “The focus on DEI within fintech is critical to help advance finance for good, creating a world of more equitable, accessible, affordable and inclusive finance.
“Open finance, supported by open technology and a DEI mindset and culture, can transform societies, reduce bias and shape a progressive future. With fintech we can help fill gaps to promote economic empowerment and better reach the unbanked and underbanked. It helps lift people out of poverty, for example, by creating greater access to trade finance, reducing the cost of cross-border payments, reducing fraud and providing the first steps towards saving, wealth creation and financial management.
“With this type of social change, the industry can support greater financial inclusion. By maximizing digitalization and the power of connected ecosystems to transcend geographic and financial barriers, finance becomes more democratized. More people can access more banking services, whether they belong to the poorest sections of society or to niches with specific needs not sufficiently satisfied by the traditional banking system. At the same time, with the power of open finance, the cost of service is also reduced, making these new markets more attractive to institutions.
“We are fortunate to live in an era where finance is open. Banks and fintechs must continue to take advantage of this opportunity to work together and innovate to achieve results that benefit all of society.”
Promote a healthy culture
Bruce LowthersCEO at Paysafe said: “The best companies know the critical importance of having a diverse workforce. Study after study has highlighted improving quality metrics for companies that encourage a healthy, diverse, thinking culture. From a business perspective, our obligation at Paysafe to foster a healthy culture is to provide the structure for people to feel comfortable and supported.
“When we do this through groups like our social networks, people feel comfortable throwing ideas around without worrying about how their peers will react. Creativity flourishes based on trust and that is when people are doing well, improving business processes, creating new products and that is when a company attracts exceptional talent.”
Strategy for success
Elizabeth HoemekeCIO at digital payments platform, One Inc, said: “In the fast-paced world of fintech, where cutting-edge technology is critical to business growth, diversity, equity and inclusion act as an enhancer for innovation. A diverse workforce, made up of a diverse set of backgrounds, experiences and points of view, brings new perspectives to the table and challenges to the status quo. This fosters creative problem solving that allows fintech companies to address complex issues across the business.
“ DEI has also been shown to improve employee engagement. When people feel valued, respected, and empowered to contribute their ideas and opinions, they are more engaged in their work. Second McKinseyCompanies with strong DEI programs financially outperform their competitors because these programs improve employee morale, provide access to larger talent pools, and ultimately lead to a more productive and collaborative work environment where creative ideas thrive.
“As a result, DEI is not just a moral imperative, but a strategy for success that strengthens the entire fintech ecosystem. However, building and sustaining DEI efforts is not a one-off initiative. It must be an ongoing process that, if not actively promoted, can easily erode. A genuine commitment to DEI and an active contribution to a workplace where everyone feels empowerment is necessary for fintechs who want to create a truly inclusive and equitable work culture where everyone can thrive.”
Diverse teams are essential
Dr. Gena Cox, The organizational psychologist, executive coach and speaker said: “The fintech sector, known for its innovative reputation, faces a significant diversity problem that threatens its ability to drive innovation, build trust and compete globally . In the United States, McKinsey reports a lack of racial, ethnic, and gender diversity at both the employee and leadership levels. The UK faces similar challenges, with women holding just 30% of fintech jobs and 17% of senior leadership roles, and ethnic minorities are significantly underrepresented.
“However, some fintech leaders, such as MasterCard, recognize diversity, equity and inclusion (DEI) as a business imperative. They understand that diverse teams are essential to driving innovation, reaching underserved markets, building trust, attracting top talent, ensuring regulatory compliance and reflecting the diversity of global markets. As the industry faces increasing scrutiny for equity and inclusiveness, embracing DEI is critical for fintech to realize its transformative potential and set a new standard for inclusive finance.”
