Why We Need to Pick up the Pace of Black Representation in Finance and Professional Services in the UK

Finance and professional services roles are among the highest-paid and most influential jobs in the UK, yet analysis by the Black Talent Charter (BTC), produced with support from Bain & Company, reveals these sectors to have among the lowest proportions of Black representation in industries across the UK economy.

The new analysis, based on official statistics, shows that in 2021 only around some 2% of employees in the finance and insurance, and the professional, scientific and technical services sectors were Black. This stands in sharp contrast with the 4.4% of the UK working-age population who are Black, according to 2021 UK Census data. 

This ~2% representation of Black talent in the finance and professional services sector compares even more poorly with a range of other key benchmark population statistics. Black people are 13.5% of the population of London, where a large proportion of finance and professional services businesses are located, and also make up some 8% of the university student population – the main source of junior talent joining these sectors.  

The data suggests that a large part of the finance and professional services sector is failing to make the most of a very sizeable talent pool with the right geographic location and educational background. 

Importantly, the disparities in representation shown by the analysis are more marked at senior levels in the economically important sectors examined. Fewer than 1% of senior leadership level employees in the financial and professional services are Black. Even more starkly, the proportion fall to just 0.5% for leadership in investment banks and 0.4% of equity partners in non-law professional services firms.

Today’s report from BTC and Bain finds that progress on Black representation is being made, with the proportion of Black employees increasing by 6% year-on-year since 2011 in professional services firms and 2% per year in the finance and insurance sector. 

But the study notes that the total number of employees in these sectors has grown still faster, outpacing the growth of Black representation. The analysis estimates that, at the current rate of change, it would take approximately 50 years for Black representation in the sectors to be in proportion to the percentage of the working age population who are Black. Moreover, figures from 2022 shows the pace of change has slowed even more suggesting 50 years could become 70 years.

Businesses must hold themselves accountable for change

The report’s authors argue that firms in the sector must hold themselves accountable for their recruitment and talent development. Above all, firms must ensure that they are actively cultivating and growing a culture where Black talent can thrive. By creating an inclusive environment, Black talent will be attracted to your firm and will choose to stay long-term.

“This research is a stark warning that the commitments made in 2020 are yet to translate into systemic change. In fact, the data shows that we're actually moving backwards, with business failing to keep pace with the rate of societal change. Improving pathways is essential but insufficient in isolation.  We can’t afford to lose the Black talent we already have, and need to identify a better toolkit of solutions.” said Laura Durrant, Chief Executive Officer at the Black Talent Charter.

"Collaboration is essential to achieve equitable representation.  By joining the Black Talent Charter, businesses can work together to recruit, retain and promote brilliant Black talent, as an essential part of operating and growing effectively.  These businesses will be better positioned to understand and respond to the needs of their customers, innovate successfully, and attract top talent from all backgrounds."

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