By Asif Aziz

Now that 2024 has arrived, the financial services sector is entering a transformative phase, with diversity and inclusivity (DEI) at the helm. This resolve to improve DEI levels across the sector has been further inspired by the Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA), who proposed fresh DEI regulations in late 2023, aimed at both improving understanding of diverse customer needs and unlocking a wider pool of talent.

This article provides a comprehensive forecast of the financial industry expected to thrive, underscoring the crucial role a diverse and inclusive workforce plays in their success, as substantiated by recent research and industry trends.

Banks to Embrace Pioneering Innovations

The banking industry stands on the cusp of substantial growth, propelled by the integration of Gen-AI. This technological revolution is expected to enhance operations, bolster data security, and refine strategic planning, contributing to an expected global spending on AI of $166 million. However, this growth transcends mere figures; it’s about fostering an environment where diverse voices drive innovation and governance. Reflecting this trend, the City of London Corporation benchmarking study notes the importance of inclusive measures. For instance, women comprise 40% of the UK’s FSS boards, a vital factor for the sector’s competitive edge and a reflection of London’s rich cultural diversity, marking a substantial stride toward achieving gender parity.

Property Investing Expected to See a Boom

The property investment market is gearing up for a significant upswing in 2024 fuelled by the expected falling interest rates, realigning its focus to cater to the diverse needs of society. For centuries London has attracted international investors, more recently foreign investment from Islamic countries in regions such as the Middle East, Africa, and Asia has gathered pace, and is projected to amass a value of $4 trillion by 2026, according to a recent TheCity UK report. It’s vital now more than ever before that the organisations and businesses that service these international investors reflect them when they look to better understand them and service their needs effectively. 

Venture Capital Set to Rise

The surge in European venture capital, particularly driven by diverse and innovative AI start-ups, clearly indicates the sector’s growing inclusivity. Currently, there are 1,215 billion-dollar start-ups globally, making venture capital a preferred choice for start-ups seeking rapid growth and significant funding. This trend extends beyond mere financing; it’s about fostering an ecosystem where entrepreneurs from all backgrounds can thrive, grow and flourish as they introduce innovative ideas into the economy. Diversity-focused initiatives like those from Barclays and Credit Suisse, are opening doors for traditionally underrepresented groups like Black, Asian, and Minority Ethnic (BAME), LGBTQ+ individuals, and women within the UK’s financial services sector. This expansion demonstrates a significant stride towards more inclusive growth.

Looking ahead

As we move through 2024, sectors such as property investment, banking, and venture capital are poised for notable growth, driven by a deep commitment to innovation, diversity, and inclusivity. Embracing these principles makes for more resilience in business and contributes towards a stronger economy. This is largely on account of the fact that British ethnic minorities are consistently more entrepreneurial, according to the UK Diversity in Business Statistics 2023. This entrepreneurialism, underpinned by a variety of perspectives, increases the rate of innovative solutions and leads to a more profound understanding of customer needs. 

As the financial services industry continues to develop, it’s an opportune time  for companies to proactively invest in diversity and inclusivity, particularly through training and development opportunities for BAME and other minority groups,. This approach is particularly relevant for Gen Z, the next generation shaping the finance industry. Known for their racial and ethnic diversity, global awareness, and dynamic career paths, their influence emphasises the need for a more inclusive and adaptable financial landscape.

In Conclusion

As the financial sector embraces ground-breaking technologies in banking, diversifies property markets, and widens entrepreneurial opportunities in venture capital, it charts a path toward a more inclusive and vibrant future. Yet, maintaining high sustainable and equitable growth levels will be contingent upon a steadfast commitment to continuous training and development, particularly for ethnic minority groups for two major reasons. Firstly, it enshrines diversity at every level, from new entrants to top executives. Moreover, it reduces attrition levels – talented, aspiring employees from ethnic backgrounds are less likely to leave the workplace if they find representation and role models from similar backgrounds to emulate.

About the Author

Asif Aziz, a distinguished property entrepreneur and philanthropist, stands as a pillar of diverse leadership. As the Founder and CEO of Criterion Capital and The Aziz Foundation, and as an Honorary Fellow at Goldsmiths, University of London, Aziz manages a significant property portfolio while advocating for inclusivity and diversity in the industry. His commitment to a variety of perspectives is crucial for driving innovation and growth in finance, establishing him as a key figure in promoting a more inclusive future within the financial sector.

The Aziz Foundation works to support Muslim students in London, addressing the financial struggles that plague nearly 15% of the city’s population.. The average household income of British Muslims, which stands at under £30,000, is a stark reminder of the economic disparities that persist. By providing educational programs and professional opportunities, such initiatives not only alleviate immediate financial hardships but also enrich the industry’s diversity and inclusivity. As the industry evolves, the collective responsibility of all stakeholders is clear: to shape a future of finance that is not only prosperous but also emblematic of our society’s diverse fabric.