Can Gen Z find pride in banking?

How banking on Gen Z talent will make or break the future of banking

In our latest article, How banking on Gen Z talent will make or break the future of banking, Katherine Savage, Soumee De and I explore the appeal of the banking sector to members of Gen Z who are making their early-stage career decisions now or in coming years.

As part of this discussion, we conclude that the banking sector has a lot to offer younger workers, however, some modernization to the employee experience may be necessary in order to boost the banking sector’s appeal.?

One theme that surfaced as part of that discussion is the demand for radical progress on the diversity, equity and inclusion (DE&I) agenda. While progress has been made, few would disagree that more work can be done to diversify representation — particularly in senior front-office and executive roles in a bank.

Last month was Pride Month, a time to formally celebrate – on a global scale – the members of our LGBTQ+ community. With this in mind, what better time is there to continue the discussion on this important theme of DE&I in banking?

I am thrilled to co-author this blog with fellow Australian and EY Partner Maggi Hughes. Maggi is the leader of the EY Asia Pacific Unity Network in Melbourne, where, in addition to advising large financial services companies on complex transformational issues, she leads a vibrant community of LGBTQ+ colleagues and allies in building networks, creating communities and solving business issues.

Read on for my perspectives and Maggi’s on how banks can demonstrate authentic commitment to and advocacy for LGBTQ+ communities; strengthen their DE&I brands to both employees, candidates and customers; and provide a great example of positive social impact to not just Gen Z members, but to societies at large.

Provide an inclusive employee experience ?

It’s easy to see why DE&I is so important to Gen Z. Research reveals that two thirds of Gen Z are worried about the future of LGBTQ+ rights in the US, with concerns stoked by a range of legislative bills that have been introduced in recent months that target the rights of LGBTQ+ communities. Mirroring the situation in the US, there has also been a significant erosion of LGBTQ+ rights in many other countries, with transgender people particularly targeted.

As the most diverse generation yet, it is not surprising that Gen Z is more likely to identify as LGBTQ+ than any generation that came before them, with some questioning the usefulness of socially constructed gender binaries and choosing instead to identify as non-binary. It is clear that they are looking for working environments that reflect and support their gender and sexual identities.???

According to EY research, 63% of Gen Z individuals feel it is very or extremely important to work for an employer that shares their values. With this statistic in mind, banking leaders are facing a new imperative to advancing their DE&I agenda and reflect this in how they lead their teams, run their businesses and serve their clients.??

Here are our three top tips for creating a more inclusive workplace for LGBTQ+ workers:

Learn the language. It is important to LGBTQ+ workers that inclusive language is used in day-to-day interactions. This includes mindfulness of preferred pronouns (he, she and they) as well as the use of gender-neutral language (e.g.; “all genders” as opposed to “men and women” or “both genders”). It is also important to avoid assumptive language around the gender of an employee’s partner or children, which can lead to a range of frustrating corrections or the creation of a non-inclusive environment.?

Break down invisible barriers. As is the case for any under-represented population, visible and relatable leadership is critically important. To help LGBTQ+ people see a rewarding career path, they need to see that others with whom they relate have succeeded before them. However, some research indicates that only 10 out of thousands of named executive officers in America’s largest 1,000 companies identify as part of the LGBTQ+ community. Even more concerning, this lack of representation at executive levels is attributed, by some, as leading to a range of undesirable experiences for LGBTQ+ workers – such as a fear of harm in some environments, as well as an inability to express oneself in the workplace with wedding rings, family photos and “plus one” attendance at work events. Representation matters for LGBTQ+ members of Gen Z, particularly intersectional representation across gender, sexual identities, race and ability.

Don’t rainbow wash. Rainbow washing is a term that describes the behavior of companies that use a rainbow flag or LGBTQ+ imagery during Pride Month to promote their brand, services and products to imply solidarity without actual support or benefit to the LGBTQ+ community. It’s not simply enough to signal support to earn the trust of Gen Z – the proof must follow. This requires a long-term commitment to inclusiveness all year round, not just during Pride Month. Banks can consider a range of strategies, such as allowing customers to use their chosen names on credit cards, making charitable contributions to grass-roots LGBTQ+ causes like transgender rights, providing gender-affirming healthcare and insurance to employees and providing resources to LGBTQ+ customers and employees. This includes the provision of financial education as well as influencing the legislative dialogue on matters that have the potential to limit LGBTQ+ rights.??

Financial inclusion is an opportunity to do good

Of course, LGBTQ+ inclusion isn’t the only issue on Gen Z’s radar. Social justice as a whole is critically important to this generation, particularly in the wake of the Black Lives Matters movement. With the COVID-19 pandemic deepening global inequality, many young people feel compelled to help bridge the gap in society and are holding their employers to the same standard.

Financial inclusion is an area where banks can make a real difference. According to the World Bank, globally about 1.7 billion adults lack access to financial services[1], creating a major barrier to economic development. Some banks are making great efforts to change this, empowering millions of people in both developed and emerging economies with financial education tools, microloan programs and mobile banking platforms.

Accelerating financial inclusion is a major growth opportunity for banks: EY estimates it has the potential to increase revenues by US$200b ?in 60 countries, including emerging and frontier markets, such as India and Kenya. It’s also a chance to reinforce the positive social impact being made across the banking sector.

All banks should be looking to secure the strongest bench of Gen Z talent in order to deliver on both today and tomorrow’s remit. However, many banks are struggling to compete against Big Tech and FinTech players for skilled candidates. As this continues, leaders who overlook the importance of shared values could find themselves at a serious disadvantage as they build a resilient banking workforce.

A narrative that sings

There’s no shortage of ways that banks play a positive role in society. From supporting social equality through financial inclusion programs to launching social impact investing and green financing initiatives, banks are using their power, influence and resources to help address social issues. But unless that message filters through to the talent market, Gen Z workers may never realize the positive social impact a career in banking has to offer.

That’s a huge loss for them, but more so to the financial sector, which could be missing out on the next generation of banking talent. We need to change the narrative around banking careers so that it sings to Gen Z. If Gen Zers are searching for a career based on purpose and values, they may be more aligned with banks than they think.?

To read more on this topic and what banking leaders can do, see our latest article, Why Gen Z talent will make or break the future of banking | EY - Global.

About the authors:

Stef Coleman is an Australian in New York. As a Partner at Ernst & Young, LLC, she regularly advises the world’s largest banks on complex workforce related topics and is a regular thought leader on the future of work in banking. In 2019, Stef was recognized as a Workforce Gamechanger by Workforce Magazine for her transformational work across the sector, globally. Stef is a mother of girls and a fitness, food and travel enthusiast. She is an ally to the LGBTQ+ community and an advocate for DE&I in global banking.

Maggi Hughes is a Partner in the Financial Services Consulting business at Ernst & Young. She is based in Australia having recently relocated after a long period working in France and Singapore. In her “day job” Maggi has spent many years advising global, Asian and Australian banks on risk transformation and financial crime compliance. Her “gay job” is co-chairing EY’s Asia Pacific Unity Network and member of EY’s Global LGBTQ+ Executive Committee. As an out and proud lesbian, Maggi has been a lifelong advocate for LGBTQ+ inclusion. ??

The views reflected in this article are those of the author and do not necessarily reflect the views of the global EY organization or its member firms.

[1] Cited from Findex data on the World Bank webpage “Financial Inclusion Overview” (page last updated March 29, 2022)?