The imperative of diversity and inclusion in Bangladesh's financial sector

In the ever-evolving landscape of Bangladesh's financial sector, the clarion call for diversity and inclusion reverberates louder than ever before.

It is a transformation rooted in economic pragmatism, fueled by undeniable statistics, and fortified by the promise of a stronger and more prosperous financial sector for Bangladesh.

We must first grasp the vibrant and diverse demographic tapestry that defines our nation in 2023 to fully understand why diversity and inclusion are imperative for our financial sector's growth and development. Bangladesh, with a population exceeding 180 million, is a bustling hub of untapped potential. 

Our median age, at a mere 27 years, signifies the youthful dynamism that courses through our society. This demographic dividend can be harnessed as a force for innovation, resilience, and growth.

Moreover, women in Bangladesh have been steadily advancing in education and the workforce. In 2023, women constitute nearly 50% of our population, and their participation in various sectors, including finance, has been increasing. They represent a critical segment of our intellectual and professional workforce.

In addition to gender diversity, Bangladesh is a rich tapestry of ethnicities, languages, and religions. This cultural diversity, which has been a source of national pride for centuries, should be mirrored within the walls of our financial institutions. The statistical evidence underscores the criticality of diversity and inclusion in Bangladesh's financial sector.

It is equally important not to limit the idea of diversity and inclusion to gender equality only. However, other important aspects that diversity and inclusion drive within an organisation include culture, religion, mental health, discrimination, and race. Research conducted globally demonstrates that diverse teams are more innovative and, as a result, more profitable. 

A study by McKinsey & Company in 2022 found that companies in the top quartile for ethnic and cultural diversity on their executive teams were 36% more likely to experience above-average profitability. As a part of promoting equal employment for all, companies in Bangladesh should truly open their doors to people from different ethnicities, religions, backgrounds, or races.

Bangladesh's financial institutions serve a diverse customer base with varying needs and preferences. Diverse teams, mirroring this customer diversity, are better positioned to understand, empathise with, and serve these clients effectively. 

In an increasingly interconnected world, global competitiveness is pivotal. Diverse teams are better equipped to navigate international markets, build relationships with international partners, and serve a global clientele.

As of 2023, the battle for top talent is intense. Leading banks worldwide are vying for the same pool of skilled professionals. To attract and retain the best and the brightest, our financial institutions must embrace diversity and inclusion which is increasingly becoming a key criterion for job seekers.

While the imperative for diversity and inclusion is undeniable, we must also acknowledge the work that lies ahead. As of 2023, gender disparities persist at the leadership level in our financial institutions. Women, who constitute a significant portion of our workforce, are underrepresented in senior management and board positions. This imbalance impedes our sector's progress and limits our access to the full spectrum of talent available.

Furthermore, we have room for improvement in promoting diversity along other dimensions, such as ethnicity, age, and disability. A comprehensive approach to inclusion should encompass all aspects of diversity, ensuring that our workplaces are representative and equitable.

In order to unleash the potential that diversity and inclusion holds for our financial sector, we must take concrete actions. Senior leaders in the financial sector must champion diversity and inclusion initiatives, setting the tone for the entire organisation. Ongoing education and training programmes should be introduced to raise awareness about diversity and inclusion and address unconscious biases within our institutions.

Actively seek diverse talent, both domestically and internationally, to create a workforce that mirrors the diversity of our nation and the global marketplace. Our policies and practices should be scrutinised and adapted to foster inclusivity. This includes embracing flexible work arrangements, establishing mentorship programmes, and creating clear pathways for career progression. 

To measure progress, we must collect and analyse data on the impact of diversity and inclusion initiatives. Accountability is a key driver of meaningful change.

In 2023, Bangladesh's financial sector stands on the precipice of transformative growth. We are presented with an unparalleled opportunity to harness the strength of our diverse population and build a future where our financial institutions thrive, our nation prospers, and our people benefit.

However, I strongly believe that it is through collective effort that our sector's fate will be determined. By embracing diversity and fostering an inclusive culture, we can propel Bangladesh's financial sector to new heights. 

The time for change is now, and together, we can make it a reality. The path to a brighter, more inclusive financial future for Bangladesh lies before us, and we must choose to walk it with determination and purpose.

Mahbuba Ashraf is an Executive Vice President, Transaction Banking, and Head of Diversity and Inclusion at Prime Bank.

Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the opinions and views of The Business Standard.