My take on D, E and I: Black people are underrepresented in finance - why?

I’m finally getting round to writing about something that’s bugged me for a while: why are there so few Black people working in finance, or specifically, investment consulting and advising institutional asset owners?

Let’s take a few steps back in time

For background, my Mum is from the Seychelles, but was born in Nairobi with her family having emigrated there in previous generations. My Dad is Scottish but went to work in Kenya where he met my Mum. I was then born in Essex and having then lived in Nairobi for four years, I grew up in Scotland before I then left for the University of Warwick.

School

There were no Black kids at my primary and secondary schools when I grew up. So, I feel like this made me more exposed to racism; not because of the colour of my skin, but the colour of my Mum’s skin, who is relatively light skinned herself!

(Apart from the racism) I didn’t think this was a big deal: I just thought that it was a factor of not many Black families living where I grew up in central Scotland.

University and beyond

It was only when I got to university that I first became aware of the underrepresentation of Black people in my maths degree cohort. Out of 200 plus students, there were plenty of Asian students, but just one Black person that I can remember. That’s ridiculous!

This then continued when I joined the actuarial profession after I graduated from university: Black people were (and still are) significantly underrepresented.

The big question: why is this the case?

For a long time I have been asking myself what is driving this and also seeking counsel from my Mum and my wife who works with actuarial apprentices (school leavers and university graduates).

I’m stating the obvious, but it simply cannot be because Black people are less intelligent than Caucasian and Asian people.

Equal opportunities?

Could it therefore be that Black people have fewer opportunities to succeed? In theory, in the UK we have plenty of schools and universities that are open to everyone, and many teachers that do a fantastic job for their students every day.

• A quick anecdote on this: My secondary school rector once told me that he did not believe that I would achieve an “A” in advanced higher maths, albeit I don’t think this was anything to do with my racial heritage. It was more likely a tactic to incite me to prove him wrong and achieve my goal in doing so. Especially when you consider that the same teacher took the time to give me coaching and mock interviews ahead of my interview at the university of Oxford. I was not offered a space, but I was astounded that someone so senior would invest so much time and energy in my future prospects.

Socio-economic factors

Back to this article: having said all that, it is academically recognised that more Black people live in the poorest socio-economic areas and on average have lower grades at university.

In the UK:

• The data for the most income-deprived 10% of neighbourhoods shows that black people as a whole (19.8%) were the most likely to live in them, and white people were the least likely to (8.7%). People living in deprived neighbourhoods - GOV.UK Ethnicity facts and figures
• The gap between the likelihood of white students and students from Black, Asian or minority ethnic (BAME) backgrounds getting a first- or upper-second-class degree is among the most stark – 13% among 2017/18 graduates. CBP-9023.pdf

I'm not saying that someone from a poorer socio-economic background will always never succeed; Katriona O'Sullivan's story is an amazing example that proves this theory wrong: Poor: Grit, courage, and the life-changing value of self-belief : O'Sullivan, Katriona: Amazon.co.uk: Books

But statistically, it seems like the odds are pretty stacked against Black people, which is tough to accept. I think this is partly why the older generations in my Mum's family always emphasised the importance of education; because it is something they didn't always have.

A circular problem

Back to the present: to me it is a lack of role models that makes the odds incredibly difficult to break through. Underrepresentation and poor visibility of Black senior leadership creates the circular effect of prolonger underrepresentation over time. How can someone be empowered to succeed when they don’t have anyone they connect with who can show them a path to success?

I hear a lot of advice about surrounding yourself with great mentors. But this takes trust, which is hard to give when you feel like an outsider and that this is visible to others.

Ergo, we need more mentors: Black people in positions of senior leadership who are prepared to support the next generation of Black leaders. And this goes right down to primary school. Otherwise, without role models and trust, how can we can instil confidence in our young Black people that they can succeed as a future leader?

Fronting up and no longer "passing"

I have spent too long hiding behind who I really am, having been “accepted” as White and therefore having a fairly easy ride in life so far. I can’t help but wonder if I was darker skinned (which is conceivable if my Dad wasn’t white), whether I would have been as accepted at work, university and school.

And, I do know this: if I had been given the opportunity to be mentored by someone of mixed rice who is in my position now, I would have bitten their arm off!

So here, now – I want to be a mentor. Talk to me if you ever want a chat. I'm not perfect, I have made mistakes, but I have learned a great deal from some amazing people that I am very happy to share.

Why is all of this important?

It is a basic human right that a person deservers to be their authentic self and be accepted for who they are, at work or otherwise.

But, even if you don’t agree – and I don’t know anyone who would – D, E and I does improve financial performance. For instance:

• According to McKinsey, cumulatively, more racially diverse companies had better financial performance: companies in the top quartile for ethnic diversity in leadership roles had a higher probability of above-average performance than those in the bottom quartile. McKinsey Reports: Diversity Matters-Vivian Hunt, Dennis Layton & Sara Prince-201502201501

So we do need more diverse leadership, by gender, race, sexuality, neuro-diversity and otherwise.

The bottom line

Black people are grossly underrepresented in finance, and this must change.

It is not just about "wokeism" – eliminating biases associated with differences people's appearances – it is also about preserving people’s basic right to be their authentic self, as well as driving better financial outcomes for everyone.