20 Years of Culture Change in Financial Services: What’s Moved, What Hasn’t, and Why It Still Matters 

Twenty years ago, the financial services industry started talking seriously about diversity, equity, and inclusion (DE&I).

Since then, we’ve seen some historic firsts, including the first woman CEO of a major Wall Street bank. Women now hold around 45% of FTSE 100 board seats. Ethnic minority leaders are increasingly visible. And in both the U.S. and UK, DE&I is no longer a backroom HR topic—it’s a boardroom discussion.

But real equity? Still out of reach.

Progress with a Catch

Yes, women’s leadership has grown—up from just 10–15% of senior roles in the early 2000s to about 36% today in the UK finance and nearly a third of all C-suite roles in the U.S. But cracks in the pipeline remain stubborn: in the U.S., for every 100 men promoted to manager, only 81 women get the same nod. That number hasn’t meaningfully changed since 2018.

Pay gaps? Moving backward. In UK finance, men now earn 35% more than women on average—a sharp increase from 24% just a year ago. Despite years of pay gap reporting, the needle hasn’t just failed to move—it’s swung in the wrong direction. At some banks, women earn just 67p for every £1 earned by men.

In the U.S., the uncontrolled pay gap hovers at 16%. The gap shrinks when adjusting for job level, but those jobs are still mostly filled by men. And don’t forget the motherhood penalty—mothers in the U.S. earn 75 cents for every dollar earned by fathers.

Even where representation has improved—like in boardrooms—the story below the surface tells us this: the system still isn’t working for everyone.

The “Broken Rung” Problem

One key reason is the “broken rung”—the first promotion to manager. It’s here where many women and people of color stall, and the impact ripples upward. If you’re not getting promoted early, you’re less likely to reach senior leadership.

That’s why companies are zeroing in on the early pipeline: setting targets for manager-level promotions, building sponsorship programs, and tracking who gets stretch assignments. But most firms still have work to do in turning policy into results.

Why Inclusion Drives Retention and Performance

This isn’t just about fairness. It’s about business. Studies show employees who feel like they belong at work are 5 x more likely to want to stay. Teams that feel safe and seen are more innovative and more likely to outperform financially. Yet many firms still treat inclusion as a bonus initiative—not a business imperative.

The ROI is clear: McKinsey reports that companies in the top quartile for gender diversity are 39% more likely to outperform peers on profitability. That number used to be just 15% a decade ago.

The Backlash—and the Real Risk

And then came the political headwinds. Especially in the U.S., some companies have backpedaled on their DE&I commitments, responding to legal challenges and political blow back. Diversity targets have been scrapped, DEI roles cut, and programs rebranded. Even some of the financial institutions once considered leaders in inclusion have gone quiet.

This moment of backlash reveals something critical: progress was never guaranteed. In many firms, it wasn’t yet baked into culture—it was a campaign, a KPI, a report. And that means it’s vulnerable.

What Actually Works

At Talking Talent, we’ve spent the past 20 years focusing on what actually drives lasting change. Here’s what we’ve learned:

• Leadership drives inclusion. When leaders model empathy and connection they set the tone for the entire culture. We help build that capability.
• Progression requires more than potential. Mentorship is helpful. Sponsorship is transformative—especially when it’s tied to outcomes, tracked, and properly resourced.
• Barriers need to be addressed at the root. We design talent solutions that remove structural blockers and open up opportunity for everyone.
• Life phases shape careers. From caregiving to menopause to mental health, we help organizations support people through life’s transitions—so they can stay and grow.
• Connection fuels culture. Inclusion doesn’t stick without relationships. When people feel connected—to each other, to their teams, to a shared purpose—they stay engaged and show up fully.

Too often, companies chase representation metrics without understanding what’s happening underneath—why people burn out, drop out, or never get promoted in the first place. That’s where we come in.

What’s Next: From Performative to Purposeful

Looking ahead, the industry faces a choice. It can treat the past 20 years as “mission accomplished”—or as groundwork.

The next decade must be about systems, not slogans. That means:

• Redesigning promotion pathways.
• Investing in early-career talent.
• Making flexibility and caregiving support core to the employee experience.
• Addressing not just diversity in hiring, but equity in advancement.
• Creating cultures of connection—because without trust and belonging, even the best programs won’t stick.

We’ve moved from “firsts” to “what now?” It’s no longer about proving that DE&I matters—it’s about proving we’re serious about it.

Our Call to Action

At Talking Talent, we’re not here to pat ourselves on the back for slow progress. We’re here to challenge the status quo, ask the uncomfortable questions, and help companies make inclusion real—not just reportable.

We work with organizations that are ready to dig deep. Ready to ask: “Why are we still seeing the same gaps after 20 years?” And more importantly: “What will we do differently in the next 10?”

If that sounds like you, let’s talk.

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