New research from Progress Together shows a rise in senior roles in UK financial services held by people from lower socio-economic backgrounds, up from 26% in 2023 to 28% today. Progress Together, which represents 55 firms in the sector, also reports that more employees are providing socio-economic data, with participation increasing from 49% to 58%.

The data was analyzed by the Bridge Group, a charity focused on social equality. The researchers explain that senior leaders in financial services shape organizational cultures and influence societal standards around wealth management. They argue that appointments to leadership positions should be based on skill and effectiveness, not background. However, the study shows that 58% of senior leaders in financial services come from wealthier backgrounds.

Diversity matters

With over 1.1 million people working in UK financial services and the industry contributing £110 billion in taxes last year, the study underscores the importance of diversity in this influential sector. It also highlights that socio-economic diversity decreases as people rise through the ranks. For example, while 45% of junior employees come from higher socio-economic backgrounds, this rises to 58% at senior levels. Additionally, 21% of senior leaders attended private schools, compared to just 6.5% of the UK population.

White men from wealthier backgrounds are 33 times more likely to hold senior positions than women from ethnic minority and lower socio-economic backgrounds. The study also finds that people from wealthier backgrounds are promoted faster, moving from junior to mid-level positions six months quicker than their peers from lower socio-economic backgrounds.

The report offers several recommendations, including setting targets to ensure senior leadership reflects the socio-economic diversity of the wider workforce, developing programs to support talent from lower socio-economic backgrounds, and improving equality in work distribution and career progression.

The authors stress that meaningful change will take time, but they are encouraged by the efforts of their member firms to create more opportunities for people from all backgrounds. However, they note that much work remains to be done to ensure equal access to the highest levels of the financial services sector.