Here in the UK, October is Black History Month. We at FINTRAIL are constantly reflecting on ways that the anti-financial crime industry can and should actively support diversity, inclusion, and social justice. As the gatekeepers of finance, we are responsible for upholding inclusive values and ensuring our practices work actively toward eliminating racism and discrimination.
A snapshot of the problem:
Within FinCrime teams: according to an industry survey, two in three UK finance workers from black and minority ethnic backgrounds have suffered discrimination in the workplace.
Accessing financial products and services: The proportion of black or ethnic minority UK consumers who don’t have a current account is twice as high as white consumers - 4% compared to 2% in 2020. In the US, nearly half of black households are unbanked or underbanked.
Treatment from financial institutions: In the UK, one study found that black victims of fraud were more than twice as likely to be denied a refund by their bank than white customers.
How we can work towards a solution:
There are many increasingly complex issues surrounding race and discrimination in the finance industry, and there are no easy solutions. However, we have identified the following areas in which the FinCrime sector can aim to make a difference.
Diversity in hiring and inclusion within FinCrime teams. Actively hiring and recruiting diverse teams is an essential step in championing inclusion. It can reduce bias, as evidenced in data science teams, and overall makes teams stronger. Check out our blog post with actionable tips and insight on hiring diverse and inclusive FinCrime teams.
Financial inclusion in anti-financial crime policies. When it comes to customer risk assessments, or reviewing and investigating screening hits or transaction monitoring alerts, ensure procedures and processes are free from prejudice and don’t inadvertently single out or impose restrictions on certain groups. Check out the FinCrime Principles of Inclusion designed in partnership with Tech Nation for practical guidance when designing or assuring your anti-financial crime framework.
Recognising and mitigating biases within ID&V solutions. Facial recognition algorithms are not universal in their classification accuracy. In fact, the poorest accuracy is within Black female subjects between 18 to 30 years old. Recognising these biases and limitations, as gatekeepers to the financial system financial institutions must engage with ID&V solution providers to ensure they are working to ensure fairer outcomes.
Amplifying diverse voices. When organising an event like a conference or webinar, consider the diversity of speakers. To whom are you giving a platform? Is there enough diversity in the representation of speakers? Sadly non-diverse panels and speaker rosters remain extremely common, though there are plenty of great speakers out there from a broad range of backgrounds, as well as groups dedicated to supporting these individuals who can provide recommendations and inspiration.
We are committed to continuously reflecting on how we as consultants support diversity and inclusion in the FinTech community. While there is unquestionably always more we can do, we hope the sector can use this opportunity of Black History Month to reflect on the inequalities that persist, successful initiatives already underway, and actions that we must take going forward to support a fairer industry.
Do you have any initiatives, suggestions, or ideas on how to champion anti-racism in the anti-financial crime industry? Please send us a note at contact@fintrail.com.