Diversity of thought drives better outcomes for business

Diversity of thought is driving more innovative, inclusive approaches in the credit industry which are better for consumers and the industry.

This is due in no small part to increasing numbers of women and other traditionally underrepresented groups working in U.K. financial services firms who can’t help but bring new perspectives to an industry that hasn’t always reflected the diversity of the communities it serves.

I’ve been around long enough to remember when board meeting agendas were focused solely on financial results without much thought to the people and the circumstances that led to those numbers.

Today we see much broader discussions, driven by increased diversity in the industry. More organisations now use these forums to understand feedback from a wider range of stakeholders — colleagues, clients, consumers and communities. The result is a much deeper understanding of how we reached our business results, as well as the opportunity to hear ideas and solutions from diverse voices.

The reality is that all of us have different life experiences, and that shines through in our professional values and decision-making. That’s why having diverse perspectives, including those of women, matters so much.

For example, in my 30 years working in the credit industry, I’ve often seen women juggling more than their male peers, which is borne out by research. Women typically assume more responsibility for childcare and certainly in the past shouldered a greater share of domestic responsibilities, even while working full-time.

Balancing competing demands is a great leveller, regardless of background and fosters empathy, giving a perspective which allows us to appreciate the pressures in the past predominately women faced and now which a far greater number of us face regardless of gender or background. Empathy enriches all decision making in particular when change affects our colleagues and consumers.

The importance of diversity and being able to bring first-hand experience and empathy to our interactions with consumers was solidified for me many years ago in my career before I joined Cabot.

My colleagues and I were having a policy discussion about what to do when a consumer had agreed to a payment plan with automatic withdrawal, but their account had insufficient funds. 

The point of the discussion was to determine how to form a moral and reasonable policy, not just meet the regulatory minimum. As well as coming from a working-class background, at the time I was the only woman in the room, with all my male colleagues coming from middle-class, financially secure backgrounds.

The concept that consumers simply didn’t have the money to make a payment didn’t seem to register with my colleagues, with one asking something to the effect of, “Why don’t the consumers just make the payment? They would be better off avoiding bank charges.” Being able to bring to life scenarios that impact consumers and influence decisions at this time was really powerful and enriched business policy.

As leaders, we have a responsibility to understand the potential impact of macroeconomics and the subsequent policies and business decisions we make have on our consumers, clients, communities and other stakeholders. 

For example, a close family member was recently promoted and is now earning a higher base salary, this salary rise limits government assistance with childcare — however given the rise in interest rates her mortgage is set to double this year, therefore she will be financially worse off.

To understand and talk about how these situations affect people strengthens planning, strategy and policies. It ensures decisions are informed, balanced and empathetic.

I’m proud to work for a company that’s inclusive and encourages us to include those perspectives in our decision-making. 

We live in challenging times, and we’re in an industry that’s at the epicentre of helping people work through financial difficulty. We will rise to the occasion of this moment only through a understanding of the challenges consumers face and consideration of a wide range creative approaches, and we can only achieve these goals if people with diverse opinions are part of the process at every level.