Securities Lending Times speaks with women advocates driving forward the message of gender diversity and inclusion and looks at the progress made, challenges faced, and what is left to be achieved
Panelists
Harpreet Bains Global product head of agency securities lending
J.P. Morgan
Elaine Kim Benfield
Senior counsel
Vanguard
Brooke Gillman
MD of client relationship management and marketing
eSecLending
Katherine McCombs
Head of business administration and marketing
State Street
Camille McKelvey
Head of business development (Trax STP)
MarketAxess
Gilly Meth
managing director, global head of lender relationship management and portfolio pricing
Morgan Stanley
Women in Securities Finance is an independent industry women’s group that was formed in 2018 to foster connections in the securities finance industry regardless of roles. Their mission is to foster connections within the industry to create a community. The group’s guiding principles are to encourage and empower women in securities finance to connect professionally, collaborate and share insights. Originating in the US, the group are now in the process of launching a European chapter.
Has the increase in women-focused panel sessions at conferences over the past few years helped drive forward the inclusivity message? What other benefits have you experienced as a result of these sessions?
Elaine Kim Benfield: Yes! Due to the amazing support from securities lending industry conference organisers to promote sessions focused on women and diversity, we have experienced an increase in awareness about the challenges facing women and diverse candidates in the industry.
These conferences were the catalyst for the creation of Women in Securities Finance, an independent industry women’s group formed at the beginning of 2018 to foster professional connections in the securities finance industry. The group was formed in response to a suggestion made by a small group of women who were seeking to network at the annual Risk Management Association conference, and has quickly grown into an industry networking group that currently comprises more than 300 women representing all facets of the industry.
We are making progress to address challenges, which include a lack of representation at all levels (senior levels in particular), lack of community and a lack of sponsorship critical for advancement. On a personal point, I’ve had opportunities to further my development by speaking on panels, organising events on behalf of Women in Securities Finance and expanding my personal and professional networks.
Harpreet Bains: It’s encouraging and pleasing to see that a space is being created to enable heightened awareness (through panels, dedicated networking sessions, etc.) for the need to build a more balanced and inclusive industry. What we need now is for this awareness to manifest itself through changing behaviours as part of larger industry goals, and for leaders to be prepared to speak out and disrupt problematic practices, hold people accountable for results, make a concerted effort to identify and recognise female talent and shine the spotlight on successful women leaders. We need to create a diverse stage that enables equal opportunities for all.
Brooke Gillman: I believe these panels have assisted in driving forward the message of inclusivity and have also expanded the exposure of women in the securities lending industry. These sessions have encouraged networking among women in our industry, which has led to greater camaraderie within these circles. Business opportunities and career growth are created when women support other women.
Katherine McCombs: Yes, it forces firms to have a more direct conversation about the delegates and speakers they choose to send to these events and sheds light on the fact that many of the industry’s decision makers are men. With many firms focused on gender diversity across all ranks, the increased demand for women speakers and panelists at conferences further strengthens and validates the need for these internal initiatives.
In securities finance, specifically, the Women in Securities Finance panels that Jill Rathgeber, Elaine Benfield and Arianne Collette have been organising force a much-needed and focused conversation on the topic. Ultimately, the more we can talk openly about these issues, the greater chance we have at solving them and creating positive outcomes for our organisations.
Gilly Meth: I do think that we are a little behind the curve here in Europe, if you consider I was the first female co-chair of the International Securities Lending Association (ISLA) conference in 2019 that doesn’t sound great. However, I do think that having panels where women are prevalent is important because it is good to increase access to senior, inspiring role models in the industry and hear first-hand their personal and frank experiences about navigating the workplace and advancing in their careers. It is critical to bring men into the equation too and gain their partnership as allies in our quest for gender parity in senior roles.
Camille McKelvey: Although it’s positive to see more women on panels, I do feel that conference organisers use these focused sessions as a get-out-of-jail card. It means they don’t spend time making the rest of the content and panels properly diverse, and thus it becomes a simple box-ticking exercise. In making so many of them ‘women only’, they are serving to continue the dislocation instead of fixing the problem. The argument often comes back that “the senior roles are still held by men and we want the panels to reflect senior opinions”, or something similar. This is simply not a valid argument, and even if it were true, it should spur events to build ‘rising star’ and ‘on-the-ground’ panels that actually talk to more junior roles coming through the ranks.
What steps has your organisation made to promote inclusivity and advancement for women?
McCombs: A number of corporate initiatives are in place at State Street to support this effort, in addition to the amazing efforts of more than 24 employee-established networks across the organisation that celebrate and support our differences.
Externally, State Street partners with a number of organisations to support inclusion and diversity efforts. One such example is the Boston Women’s Workforce Council’s ‘100 percent talent compact’: a pledge companies can take to commit to closing the gender gap. State Street is also one of the original signatories to the ‘CEO action for diversity and inclusion pledge’ that aims to rally the business community to advance diversity and inclusion within the workplace by working collectively across organisations and sectors.
One of the most influential changes I have seen in the past few years, ironically, has been the rollout of parental leave for men. While initially many men were reluctant to take any leave, we are now seeing more of them take advantage of this employee benefit. This is starting to change the stigma that childcare is exclusively a woman’s responsibility and the perceived negative impact associated with a woman taking her full maternity leave. Ultimately, I hope this introduces a more balanced view on childcare expectations for employees and managers as now both men and women are empowered to take this time off.
Meth: I honestly believe that here at Morgan Stanley we are progressive in driving this initiative. We were the first core investment bank to sign the UK Government’s Women in Finance charter and are therefore not just accountable internally but also we have to report to the UK government on our progress regarding our initiatives, and target increasing female representation in senior management. Intense focus has been put into strengthening the pipeline of promotion candidates with proactive succession planning, gender-balanced shortlists and robust leadership development initiatives.
We have a female CEO, chief finance officer and chief investment officer here in Europe, which sets the tone well both internally and to our clients. Globally, companies that have taken a holistic approach towards equal representation have outperformed their less diverse peers by 3.1 percent per annum over the past eight years. This is illustrated in a new report published by Morgan Stanley research looking at a proprietary framework: the holistic equal representation score (HERS) to help investors identify the most gender diverse companies. I represent my division on our diversity action council for Europe, the Middle East and Africa (EMEA), which provides thought leadership and acts as a catalyst to drive forward the strategy and agenda across all diversity strands.
McKelvey: There is a broader industry challenge for female advancement. We acknowledge this at MarketAxess and have management support to promote women into leadership roles. We recently hosted an event for all MarketAxess women in Europe, and on International Women’s Day this year we also celebrated our head of legal counsel in Europe and Asia being awarded the ‘legal and compliance woman of the year by Waters Technology. Promoting inclusivity and advancement for all is fundamental to MarketAxess as an organisation.
Benfield: Diversity and inclusion are top priorities for Vanguard. Vanguard recently rolled out a programme to ensure all crew members know and understand their role in inclusion. In addition, Vanguard has shown its commitment to these priorities by hiring females to serve in important roles of general counsel, chief diversity officer and head of securities lending, advocating for greater female representation in corporate boards through its investment stewardship group, and by developing a vibrant women in leadership group within the company (one of many affinity groups supported by Vanguard).
Bains: Investing in the advancement of women is a key strategic focus for J.P. Morgan and over the years the firm has made available a range of tools and resources to support and develop women at all levels. Two points that specifically carry weight for me: firstly, that the firm remains deeply committed to meaningfully increasing the number of women in senior positions and words are backed up by actions, for example, in 2018 it signed up to the UK government’s Women in Finance Charter.
Secondly, J.P. Morgan recognises that men play a vital part on the journey of gender parity and the importance of finding ways to enable their contributions. As the majority in power, they can influence both cultural and organisation change. However, you need to begin by helping men understand the benefits of diversity, involving them in the conversation and encouraging their engagement as allies (and not alienating them).
Gillman: eSecLending has always championed the women in our company and we are highly focused on inclusivity across our organisation. Our CEO and executive team are in tune with the dynamics of our industry and remain focused on ensuring our company demonstrates positive support for women in securities lending, as well as showcasing the successes of women within our company and across our industry. We have a strong women’s group within our company, and we have been proud to actively participate in and support the Women in Securities Finance organisation.
How can mentoring and sponsorship help within organisations? What has been your experiences with mentorship either as a recipient or donor?
McKelvey: It is important to make the distinction between a mentor versus a sponsor, and both have their roles to play in career development. A sponsor will assist you in navigating typically your own organisation and will act as an advocate for you, whereas a mentor could be inside or outside of your organisation and will help you in dealing with different work situations and be a general sounding board. Having senior sponsors in your organisation is key, but establishing this kind of a relationship is tricky at the junior levels outside of a formal programme. These kinds of relationships often grow organically over a period of time, and, therefore, having something more structured in place is helpful as are structured mentorships. I have taken part in a couple of mentor programmes and I think that they are a good way to discuss issues with someone at a more senior level who is not directly in your reporting line. The opportunity to have this kind of open dialogue takes the pressure off a conversation that you might otherwise have with your direct manager.
Gillman: Mentorship helps employees grow in their knowledge, confidence and skills. Sponsorship helps individuals advance in their careers. I have had both mentors and sponsors over my career; they are equally valuable but finding sponsors that took me on as a protégé, supported my work and fought for my place at the table helped me to achieve the career I have today. I now believe it is my responsibility to do the same for others and I think all senior leaders should devote time to mentor or sponsor individuals in their organisations that are the future leaders, even if they don’t yet see it in themselves.
Bains: I’m a big believer of both. Throughout my career I’ve had several successful relationships of both kinds which have helped me at different times for different things. Mentoring, specifically, has been invaluable in helping me overcome my own self-limiting beliefs and building trust in myself, which in turn gives you the confidence to move out of comfort zone and remove the restrictions that you may unknowingly be imposing upon yourself. At other times, it’s provided me with support and guidance needed to help combat everyday unconscious biases which I may have encountered. However, you shouldn’t feel like you should only seek out female mentors; having a male mentor can offer some great counter points and insights while at the same time help women build the diverse networks they need throughout their careers. Sponsorship is also a critical success factor. Having an advocate that is actively working to advance your career, touting your accomplishments and potential, connecting you to others in their network, recommending you to other leaders can be very powerful. If I look back at my career, my entry into securities financing was the result of a senior male sponsor who encouraged me to take on a different role, followed by actively opening doors for me with other leaders.
Additionally, I was also fortunate to have had a great opportunity in my earlier years to be a mentor to a senior director. Not only did I find the experience rewarding but the relationship also naturally transitioned into a sponsorship. Reverse mentoring can be an effective means of addressing the issue of diversity as it enables leaders to be educated about how the world looks through other eyes, helping them to become familiar with topics that they wouldn’t normally have access to. It helps bring together generations, and importantly is giving the less experienced employee an opportunity to be a mentor and gain confidence from this experience. I would encourage others to try it.
Meth: The role of a sponsor is to advocate and advance; the role of a mentor is to support and encourage. Both are important for organisations. Indeed, sponsorship is a powerful tool for the retention of high-performing individuals.
I would advocate everyone, both male and female, to have both.
I have a large group of females that I mentor both internally and externally within this business and others. It is extremely rewarding when you see people progress and find their feet in this industry.
Benfield: Studies clearly indicate that mentoring and, more importantly, key sponsorships, are critical for anyone’s advancement. I believe that any company seeking meaningful change in this area should focus on how to level the playing field with programmes focusing on development and sponsorships.
Flexibility within the working environment is also being discussed. This is obviously not just directed at women, but what does your firm do to embrace flexibility?
Gillman: Flexibility within the workplace is not a gender specific topic. Men and women both have lives outside of the workplace and needs for flexibility, whether that be to address medical appointments, aging parents, young children or other personal needs. The health and well-being of employees is what makes a strong business. When men work for companies that offer flexibility it can often also help women in their own careers, especially in a situation where both parents work for example.
At eSecLending, we invested in technology early on to ensure our workforce could work anywhere. This means we are always responsive to our clients, but it also means we can be responsive to our employees. We have found that offering our employees the opportunity to work remotely when needed increases productivity and employee job satisfaction, which adds to the success of our business.
Bains: I am a strong advocate for everyday flexibility and the ability to adjust how, when and where you work to meet the needs of the business while supporting work life integration. I’m fortunate to be part of a team at J.P. Morgan which supports the same view and recognises that different situations require different solutions. My organisation trusts me to make the right choices with my working patterns and empowers me to think differently about the way that employees work. Ultimately, it’s about establishing a culture where performance is based on results, not hours spent in the office, and creating a workplace of employees who feel more trusted, respected and valued.
There is a common perception that the financial services industry is less conducive to a good work-life balance, and one of the reasons that senior level women may not strive to become top executives is the fear of not being able to balance family and work. Further, that participation in flexibility programmes will be viewed negatively or hinder their development. Therefore it’s extremely important that your firm, like at J.P. Morgan, emphasises that flexibility is for everyone and not just for women or parents and takes steps to promote greater acceptance and usage, thereby removing the stigma that women may otherwise feel by participating in flexible arrangements.
McCombs: Flexible work arrangements have been available at State Street for more than a decade at this point, initially on an as-needed basis. Now formalised, the Flex work programme is integrated with our business strategy, and has transitioned from a disparate collection of employee-initiated arrangements into a proactive, manager-initiated programme as well, supported by a global flex-work policy, tools, technologies and resources.
Flex is seen as a strategic tool at State Street–for both managers and employees–leveraged to increase workforce efficiency, to maximise workspace utilisation, support business continuity plans and to improve employee engagement and productivity.
Fast forward to 2019, Flex is now widely adopted in our company. In our last employee survey we learned that 78 percent of survey respondents have some type of flexibility in their schedules, formal and/or informal, so there is no surprise that Flex continues to be one of the main drivers of engagement in the company.
Meth: Each division has their own approach to flexibility as there cannot be a ‘one-cap-fits-all’ approach, due to the variety of roles at the firm. This could be working from home or a specific initiative. For example, some divisions, including ours, operate a flexi-time initiative where you can take three hours every two weeks for yourselves; the key here is buy-in among your colleagues to make this work. In a World Economic Forum survey from 2018, 79 percent of millennials say that flexible working is a career priority. There are key benefits to a flexible working arrangement, for example, reduced attrition, reduced stress, being able to get things done without the office distractions and, of course, an enhanced work-life balance.
McKelvey: We’ve definitely evolved around this as a firm in the past couple of years, although the nature of what we do will always mean we’re not going to be as flexible as some. As a business, we fall between fintech cool and financial services corporate. We’ve traditionally been pretty heavily office-based, following client trading hours and being clearly aligned to their working practices, but this is now changing as our clients do. I think we have a good, common-sense approach, led by management, to being flexible and allowing individuals to manage their workloads in ways that best work for them.
How has the landscape changed for women with careers in the securities finance industry over the past few years?
McKelvey: It is no secret that in many areas of financial services there is an imbalance in the female-to-male ratio, and unfortunately within securities finance we also see this trend. That being said, I do think that we are starting to see a shift as our industry puts more emphasis on gender parity within financial services. At the ISLA conference this year, there was an event dedicated to women in securities finance and this is something that I have started to see across conferences in the past few years, which means that we recognise that there is an issue that needs to be addressed, and this is the first step to driving change.
We also need to think about the pipeline of new talent, and ensure that women are taking science, technology, engineering, and mathematics subjects so that they are giving themselves the best opportunity to build careers in historically ‘male’ sectors.
Bains: Focusing on the positives, the banking industry’s image has improved markedly and for certain there is a general acknowledgement among participants of the importance of building a diverse and inclusive workplace. The formation of the Women in Securities Finance group in the US, which is also now looking to expand with an EMEA chapter, is a great example of the different ways in which the industry is bringing awareness and dialogue to the forefront. With all that said, we now need to convert awareness into meaningful change that will help address the challenges that women face. This involves organisations taking a fresh look at behaviours, cultures, processes and policies. Success will be when we see a rise in the levels of women applicants and the number of women in senior positions. It’s worth highlighting that as the industry landscape continues to evolve, the type of roles and skill sets demanded is also changing. A career in securities financing is no longer about only wanting to be a trader but the industry is shouting out loudly for diverse experience including regulatory and risk expertise, technology backgrounds and project management. This not only presents women in this industry with greater mobility but the broader career path options should also help with attracting new talent.
McCombs: When I first started in the industry, securities lending was very ‘old school’. I would argue that it still is in some ways and is plagued by many of the macro factors impacting the financial industry overall. That said, the securities finance management team at State Street has dedicated a significant amount of time and effort to improve the opportunities for all employees in the division. One example is our revamped interviewing process which must include a panel of at least three qualified, diverse candidates. This forces managers to consider candidates they may not have initially considered due to potential unconscious biases. Unconscious bias has become an openly discussed topic in the context of mentorship and professional opportunities as well, and the impact all of these have on our business and team. These initiatives highlight some of the positive changes that are already underway for women pursuing careers in the division.
Meth: Businesses have set priorities and targets around the recruitment and retention of female employees. It is key to have a strong pipeline of females coming through the ranks, encouraging girls to start looking at banking while they are still at school and demystifying the industry is key in this process. At Morgan Stanley we have programmes specifically targeting sixth-form girls to give them an insight into the business and the huge diversity of roles available. In my opinion, the opportunities for females in this business have never been greater than they are today.
What is your vision of the future and how do we get there?
Benfield: I hope to see more diverse representation in our industry, at all levels, to reflect the demographics of this country and to help our financial services industry continues to grow and thrive. I also hope to see the continued growth of our networking group, Women in Securities Finance, both domestically and globally.
Meth: This is not a quick fix by any stretch of the imagination. We need to ask ourselves why there are so few senior women in our industry and be accountable for retention. It is one thing ticking the box by having a diverse desk, but it is quite another understanding what you need to do to keep that population engaged in order to progress through the industry. I would like to think that in seven to 10 years we will start to see a larger population of senior women, and yes, I do think it will take that long!
McCombs: I hope to see more women in leading roles, not because we are forcing diversity and simply focusing on numbers but because the unconscious biases that currently exist are no longer prevalent. As the numbers of strong female leaders and role models grow so too will the paths to success.
McKelvey: I have an optimistic view of the future, and I do see changes afoot with diversity and inclusion. There is evidence to back-up the fact that more diverse organisations are more successful, and I believe that companies are taking note of this and starting to put formal processes in place to address workplace diversity. Yes, we do still have some way to go to change the stereotypical view of an ‘investment banker’ and we must encourage women to pursue careers in financial services. The last decade has seen the emergence of more and more fintech solutions, driving how future financial markets will operate. Women need to be guided when making their academic choices and that technology is a path that they should feel comfortable choosing. This next generation will be building technology solutions for our market, and these technologists should be from a diverse pool; otherwise we will continue to build solutions from a male-only viewpoint.
What advice would you give to women who are starting out in the securities lending industry?
Bains: It’s a demanding industry and this may feel scary but be brave and don’t be put off. My personal experience from when I first started out was that I was repeatedly asked by my parents whether I was certain that I wanted to work in banking. They were convinced that for an Indian woman with long-term history of Crohn’s disease, a career in accounting felt safer and would be less stressful! I almost reconsidered but in the end I decided to trial it. Fast forward 20 years and I’m still here and determined to keep going. Also, don’t be afraid to take risks early in your career, try out different roles, locations, business units to build a broad foundation of core skills. I did not begin in securities lending, but used the first half of my career to gain invaluable, rounded experience with roles in asset management, finance and auditing, which helped me develop a number of transferable skills. Lastly, make sure you know and communicate your value to those who matter, if you have a seat at the table then focus on what you bring that stands you apart and ensure your voice is heard.
Benfield: Work hard, be kind, actively listen, embrace feedback and be resilient. Do not give up or react when faced with difficulties. Instead, seek advice from those you trust and respect. This includes everyone who crosses your path, from your colleagues, administrative assistants to the head of a business, as well as friends and family. Equally important is to trust your instincts and stay true to your values.
Meth: Build yourself a network both internally and externally. Do not make the mistake of keeping your head down and believing management will know what a good job you do and your aspirations for your future; be vocal.
Look for the role that you have a passion for and build your skill set around this.
McCombs: When you are given opportunities–whether a new task, project, or role–strive to be as prepared as you can and always follow through on what is asked of you. If you become known as someone who is good to work with, the more opportunities will open up for you. I also strongly believe in having a broad network of people who know your strengths and can advocate for you–particularly as you are starting your career.
McKelvey: This industry is very much driven on relationships, and so building out a strong network is key. I would encourage anyone starting out to attend as many events as they can to maximise the opportunity to meet with peers and exchange ideas. My network both inside and outside my organisation has been so important to me throughout my career, and I often leverage it whether it is to share ideas or exchange views on industry best practice.
Aside from the networking element, it is extremely important to not be afraid to ask questions, as no question is a stupid question and it will be much better if you truly grasp something rather than trying to second guess. As an example, we use a lot of jargon that to those not on the inside is like another language, so if you don’t know what something is then ask at the appropriate time, or go away and find out the answer.
Gillman: My advice is the same for women or men. Learn the details, all of them, and ask questions, all the time. Offer to do more and do it with a positive attitude. Support all your colleagues and be the individual that people go to for support. Focus on your relationships and seek out mentors and sponsors. It is your career and no one else is going to do it for you, so own it.
