In the second of two articles, Carmella Haswell speaks to women in securities finance and lending to discuss the barriers facing women of colour, historic moments in the industry and how the sector can advance in the fight for diversity and inclusion
After careful analysis of the priorities facing women in securities lending and finance, a spotlight now shines on banks, securities lending agents, technology companies and other financial institutions, to provide support in the advancement of females in the industry and to become leaders in the charge toward diversity and inclusion (D&I).
In the first part of this article, published two weeks ago in SFT issue 298, leading figures in the securities finance industry analysed the current landscape for women in the sector. Pinpointing the lack of representation for women throughout all levels of the pipeline — particularly within front office roles — participants agreed that with job flexibility amiss, this acted as a deterrent for women.
Arianne Collette, co-founder of Women in Securities Finance (WISF), COO and head of strategy for Reinvestment at Morgan Stanley, comments: “If there is a lack of positive role models and sponsorship in front office positions, then women and minorities will feel less empowered, confident or motivated to reach for or remain in these types of roles.”
Reflecting on the flexibility issue, Elaina Benfield, co-founder of WISF and assistant general counsel at Vanguard, indicates that the main concern is whether people are given the opportunity and tools to thrive in their roles. With different jobs requiring different skill sets to succeed, Benfield explains: “Companies need to understand that inclusion, mentoring and sponsorship are key requirements for any individual to grow and thrive, especially for minorities.”
Collette raised an interesting point in how differently women and men operate in a corporate setting, with women more inclined to keep their heads down and produce quality work in the hope that their efforts are noticed. “From a female perspective, one must prioritise networking, continuously think about career development and speak up. When you ask for opportunities, it gives you information. This knowledge turns into power and provides you control of your career,” Collette advises. “Advancing women in these types of roles needs to be supported from the top of the house.”
To continue tackling the issues women face in financial services, this requires time and dedication. It is inefficient to act through ‘one and done’ strategies, where companies have a single woman on their board and feel this is adequate representation. The 30% Club — a global campaign group acting to increase gender diversity on boards and senior management teams — announced on 14 March their disappointment toward the return of all-male boards to the Financial Times Stock Exchange (FTSE) 350, less than a week after International Women’s Day.
The index had accomplished a 13-month-long period in which all-male boards had disappeared from the entire FTSE 350, according to the 30% Club. The Club has published data from BoardEx, on the number of women across boardrooms and executive committees of firms listed on the FTSE 100 and 350. It revealed that there are 15 all-male executive committees in the FTSE 100 and 97 in the FTSE 350. Additionally, there are eight female CEOs in the FTSE 100 and 18 in the FTSE 350. The 30% Club said the “sobering statistics” demonstrated a lack of progress in female representation at the executive level of Britain’s largest companies, despite board representation climbing.
Margaret Harwood-Jones, managing director and global head of financing and securities services at Standard Chartered, remembers often being the only female in the office, on a training course and in management meetings during the early days of her career. “It was very unusual to deal with female clients, particularly on the institutional side, but this has changed dramatically since then,” she says. Standard Chartered now has 14 females as CEOs of the bank’s business, including in some of its most significant countries such as Hong Kong, China, United Arab Emirates and India — something that could not have been said a decade ago.
Evaluating female representation on a regional scale, Ina Budh-Raja, the London chapter lead for WISF, and Jill Rathgeber, co-founder of the group and New York chapter lead, note that there is great representation within roles of all disciplines across the securities finance sector, throughout the WISF chapters. The only regional differences the women could indicate was the accelerated focus on the regulatory community on D&I in Europe.
“In the UK, the Financial Conduct Authority is consulting on D&I and will be actively scrutinising the financial services industry on progress being made on gender and racial diversity. There is quite a laser focused approach in this region, as part of the broader ESG agenda that is moving very quickly in EMEA and the UK,” explains Budh-Raja, EMEA head of product and strategy, securities finance and markets ESG at BNY Mellon.
Diversity among women
Representation of women improved across all levels of the corporate pipeline in 2020, but the promotions at the first step up to manager are not equitable, says a McKinsey & Company report. The Women in the Workplace 2021, published in September 2021, analysed the representation of women in corporate America and explores the intersectional experiences of different groups of women at work. The report highlights that women of colour were losing ground in representation at every level of the corporate pipeline. The report says: “The gains in representation for women overall have not translated to gains for women of colour.”
Speaking to SFT, Vanguard’s Benfield comments: “People naturally feel more comfortable with those who are similar to them and, therefore, more likely to hire, mentor and sponsor them.” The WISF co-founder reminds the industry that efforts to break this cycle must be made in order to subdue bias. “Unless there is a conscious and consistent effort to retrain ourselves and to be open minded about different personalities and different types of people, this bias will perpetuate. We need to think and behave differently on a daily basis to effect long-term change.”
Between the entry level and the C-suite, the representation of women of colour drops off by more than 75 per cent. As a result, women of colour account for only 4 per cent of C-suite leaders, a number that the McKinsey report says has not moved significantly in the past three years.
“Studies show that it is in the best interest of companies to have a diverse workforce. Numbers count – especially toward the top because there are virtually none,” adds Benfield.
The report highlights that while all women are more likely than men to face microaggressions that undermine them professionally — such as being interrupted and having their judgement questioned — women of colour often experience these microaggressions at a higher rate. The report reveals that compared with men at the same level, women are doing more to support their teams and advance diversity, equity and inclusion efforts.
Speaking to SFT, Roanna Kim, director of equity finance at RBC Capital Markets, says: “When I entered the industry, I was the perfect candidate for a trifecta bias — I was a young female, visible minority entering into a front office trading role. I often give an example of this when I was once mistaken for an administrative assistant, who was a newcomer to the country at an industry event. There were about four other female veterans in Toronto, who I quickly befriended and leaned on for direction and mentorship.”
As discussed in part one of this article, published in SFT issue 298, there are blanket issues that affect women throughout the securities finance and lending space, such as the new challenges sprouting from post-pandemic life. For example, Rathgeber, director of product and strategy at BNY Mellon, says the financial world is adjusting to the return to office and hybrid working arrangements, along with caregiving dynamics. “Whether we are in the office physically or working remotely, firms should be focused on providing equal opportunities for visibility and leadership, promotion and advancement. We need to make sure that there is a level playing field for everyone,” Rathgeber concludes.
However, women from different groups in society, such as women of colour, face additional barriers. BNY Mellon’s Budh-Raja states that underrepresented groups face systemic barriers across the financial services as a whole, it is not simply reduced to the securities finance sector.
She continues: “I think when you talk about women of colour, what we are really talking about is intersectionality of multiple diversity factors, which in itself increases that delta from what is historically perceived as the norm figure of success in the workplace and particularly in financial services. Inevitably, there are more barriers such as unconscious and conscious biases, which you have to break down and navigate. This intersectionality of several diversity factors means your natural starting point is very much on the outside and you have to work harder to effectively enter the sidelines, but it is not straightforward to penetrate the inner circles of decision making and leadership levels.”
Budh-Raja adds: “It is challenging and as a woman of colour, my experience is going to be very different to others who might have inherently different multiple diversity factors.” Additionally, Budh-Raja says it is important to look through the lens of D&I to appreciate differences, to embrace and place value on the varied experiences, backgrounds, skills, strengths and character types that a diverse group brings together — this leads to fresh and balanced outlooks to decision-making processes.
The broken rung
The McKinsey report called to attention the ‘broken rung’ that women face at the first step up to manager. It announced that for every 100 men promoted to manager, only 86 women are promoted. As a result, men outnumber women significantly at the manager level, which means that there are far fewer women to promote to higher levels.
Standard Chartered’s Harwood-Jones explains several barriers facing financial services. These included a weakness in the talent pipeline for female talent, insufficient ability to measure and track progress on this agenda and a lack of business ownership and accountability.
Despite the obstacles, Standard Chartered have been making steps to improve female representation across the firm. The bank’s board is 31 per cent female, an 8 per cent increase from 2016. In terms of female senior leadership at the bank, referring to managing directors and executive directors, this number has risen to 31 per cent, a five per cent increase from 2016. Additionally, Harwood-Jones reports her own management team to be 40 per cent female. She adds: “We have got to focus on creating an inclusive environment for our people, for our customers and for the communities in which we operate.”
Budh-Raja says BNY Mellon is extremely committed to setting a positive culture. The effectiveness of this lies not in corporate rhetoric or tick-boxing on D&I, but instead drives D&I as a core expectation that is placed on every employee. Female representation within BNY Mellon’s workforce is 41 per cent, with 29 per cent at senior lead level and 27 per cent on the firm’s board.
“Everyone ‘owns’ D&I at BNY Mellon and that is extremely powerful in moving the dial,” explains Budh-Raja. “There is a shared goal to create a level playing field of equal opportunities for everyone — whether it be women or other underrepresented groups — it is not just about diversity, there is a proactive approach to inclusion, with everyone being encouraged to positively ask the question, is every voice who should be in a conversation being included. If not, why not and let's bring them in.”
The WISF is a renowned organisation, which aims to create a community to foster connections and promote the advancement of women in the securities finance industry and beyond. The group was formed in early 2018 and has since developed into a global organisation with more than 800 members across five chapters, which includes over 100 organisations.
According to WISF co-founder Collette, a core focus for the group is to launch a philanthropic component to its programming. “We are partnering with a local all-girls high school to discuss careers in the securities finance industry,” Collette explains. “The goal is to bring awareness and education of opportunities for females in finance, while establishing positive role models and building a pipeline of younger talent. Additionally, we are planning on partnering with a women’s shelter to help women of the community.”
Opening up about the WISF group’s vision for 2022, co-founder Rathgeber says they want to focus on promoting female retention and advancement in the workplace post COVID-19. The group will put together programming that will provide professional development opportunities for its members. The WISF has discussed adding an advisory board that will give them some outside perspectives in order to continue to make an impact, increase awareness and get fresh ideas for programming.
Speaking on new initiatives for the group, Budh-Raja says the London chapter will launch ‘Grow Your Network’, which is aimed at connecting members across the securities finance value chain in an informal and meaningful way.
Growing top talent
Using their experience through the trial and tribulations of facing the financial world as a woman, participants of the sector educate organisations on what solutions would be practical in accelerating the progress toward D&I and growing top talent.
Mandating the level of diversity in firms through targets was a great way to initiate awareness, but it is not the solution to such a complex multi-layer issue, according to the RBC’s Kim. An investigation into unconscious bias, imposter syndrome and emotional intelligence can help better understand how to best support and grow top talent — regardless of gender, race and orientation. Kim continues: “As a parent, I hope that these perspectives extend to our homes, where shifts in mentality are demonstrated from early childhood so that the concept of inequality is contained to our generation and not continued into the future.”
BNY Mellon’s Budh-Raja notes that there is much to be done to create a level playing field for women to advance to leadership levels in financial services. She listed female health and recognising challenges for women at particular stages in their careers as critical focus points.
“If we want to fix the ‘broken rung’ and advance the pipeline of women from junior levels to the board, we cannot ignore those female health challenges or keep them under cover, as has historically been the case,” explains Budh-Raja. “Workplaces that recognise these life challenges, help women navigate through them so that they can perform optimally in their roles and enable women to be their authentic selves, will be successful in attracting and retaining female talent.
“Unless we recognise and support this challenge, we will continue asking ourselves why successful women are lost to the industry at crucial points in their career journey.”
Historic moments
Budh-Raja says the introduction by the Bank of England (BoE) of D&I as a best practice theme in the UK Money Markets Code in April 2021, was a key moment for women in the securities finance sector.
“Embedding industry best practice on a permanent basis in this region represents a significant step in moving the dial on D&I and, as co-chair of the Money Markets Code Sub-Committee, I was incredibly privileged to be able to collaborate with the BoE and UK market participants to embed this topic into the Code,” says Budh-Raja.
Another key moment has been the recent commitment by a number of firms and conference organisers to ensure a diverse mix of panellists on any events they host, according to Budh-Raja. “Although it may not always be possible, it’s great that the intention is now there and it certainly helps to create a level playing field, enabling equal exposure for men and women.”
BNY Mellon’s Rathgeber adds: “Generally speaking, the formation of the WISF has highlighted the importance and the benefits of having a diverse and inclusive workforce. The group has continually promoted that message and has created a platform for women to get more exposure and visibility so that they are seen as leaders, both within the group and across the industry as a whole.”
As the co-lead of the WISF Toronto chapter, RBC’s Kim commends the Canadian city community. She feels fortunate to have grown a career within such a supportive group and proud to see how far the industry has come to recognise diversity. “Having access to a global network of women through a group like the WISF has been a refreshing change to the industry,” comments Kim.
Key career moments
After a brief career hiatus, RBC’s Kim was inspired to re-enter the securities finance sector by the women who had successfully re-launched their careers through a local programme run by Women in Capital Markets. “It was such a privilege to meet several experienced women in the industry and become part of a well-respected network,” says Kim.
“One of my biggest accomplishments has been launching the Toronto chapter of the WISF. In addition, as vice president of the Canadian Securities Lending Association (CASLA) board of directors, I am also able to highlight the importance of recognising diversity and inclusion in our daily practice.” Kim adds.
Similarly, the creation of the WISF has been one of the biggest accomplishments of BNY Mellon’s Rathgeber. “As we are approaching the five-year anniversary of this group, it is amazing to look back and see how far we have come and how much this group has grown from a simple idea that started at an industry conference reception,” Rathgeber notes.
Rathgeber explains that when she began her career in the industry at State Street, she knew nothing about securities finance. A year later, Rathgeber transferred to the securities lending group in an operations role and the rest is history. “I find securities finance to be a relatively niche industry that is always evolving so there is always something to learn. The talented people that I have worked with, the valuable relationships that I have made over the years and all that I have learned in that time is what has kept me in this industry,” she concludes.
Reflecting on her biggest achievements, Standard Chartered’s Harwood-Jones — who has been involved in financial services for more than four decades, 25 years of which have been spent in securities services — recalls a situation, prior to her time with Standard Chartered, in which a bank was on the verge of losing a significant relationship. Despite the obstacle and doubts from colleagues, Harwood-Jones dug deep and salvaged the relationship, which has since prospered incredibly.
“Even as a child, I was somebody that liked to get involved, help out and solve problems,” explains Harwood-Jones. She continues: “When I first started to look at banking, I was very taken with the fact that it is a people business. It is about working with people, solving people’s problems, delivering new solutions and therefore business performance.”
In addition to her perseverance, Harwood-Jones holds a board member position at the International Securities Services Association (ISSA) and is relentless in her effort to attract and develop new young talent into the industry. She currently sponsors straight-to-desk hires, an early leaders programme and international graduate accelerated learning.
BNY Mellon’s Budh-Raja says a real highlight of her career has been the opportunity to establish the London chapter of WISF and co-lead it from zero to around 350 members in just over two years and during a global pandemic.
“Women in the industry have been looking more intentionally to WISF to grow their connections in the industry more widely in the virtual environment, where they were feeling most challenged — particularly in the early days of the pandemic, faced with multiple work and caregiving role conflicts,” says Budh-Raja. Promoting standards of best practice as a board member of the International Securities Lending Association (ISLA), was an additional accomplishment of hers.
Following the current theme, Budh-Raja attributes her stay in the industry to the fantastic people within it. Despite everyone competing to drive their own businesses forward, she explains that there is a hugely collegiate and collaborative pool of people across the value chain that make it a great industry to be a part of.
Morgan Stanley’s Collette always knew she wanted to work for a large broker-dealer within New York City. “I was interested in the art of business and motivated by the fast-paced nature of finance,” Collette explains. “When I thought about the lack of female representation in sales and trading roles, it was a motivating factor in my decision, rather than a deterrent. I said to myself ‘I know I can do this’.”
Being a 20-year veteran with Morgan Stanley and surviving and thriving through three crises’, is an incredible milestone for Collette. “Being a part of the WISF organisation is a privilege. Having the opportunity to bring the group to market with my co-founders and the full leadership team, and seeing how it has grown organically to create a strong community, is an amazing achievement,” Collette adds.
Echoing this sentiment, Vanguard’s Benfield describes securities finance as an awesome, collaborative and supportive industry. Benfield prides herself on aiding the launch of WISF with her co-founders Collette and Rathgeber, sponsors and chapter leads.
Benfield continues: “Having the courage to relocate my family from Boston to work for Vanguard, to help support its mutual funds and securities finance business, was a big leap of faith. I feel like that was an incredible investment in my family and my career.”
