A major new research report has revealed that white middle class men from higher socio-economic groups are 30 times more likely to succeed in financial services than working class, ethnic minority women.

The study of 150,000 people who took part in the research found that socio-economic background is more likely to be a significant factor in a person’s route to success in financial services than gender or ethnicity.

The research - which includes the wealth management sector - was carried out by the Bridge Group for Progress Together, a campaign group which wants to see greater diversity and inclusion at senior level in financial services.

Progress Together says its report ‘Shaping our Economy’ is the largest study into socio-economic diversity and progression in financial services in the world.

The report investigated socio-economic background and how it impacts career progression in the financial services.

The report reveals that:

• Women from working class backgrounds have a ‘double disadvantage’, progressing 21% more slowly than their peers from more advantaged families
• People from higher socio-economic backgrounds are more than twice as likely to be found in senior roles compared with those from lower socio-economic backgrounds
• Half of senior roles in the sector are held by white people from a higher socio-economic background
• White men from higher socio-economic backgrounds are 30 times more likely to be found in senior positions, compared with working-class women from ethnic minority backgrounds
• 20% of senior employees attended a fee charging school – more than triple the national average of 6.4%

The report also found that half of all senior roles in the financial services sector were held by white people from a higher socio-economic background and men from higher socio-economic backgrounds were 4 times more likely to be in senior roles than women from a lower socio-economic background.

Some 75% of senior roles are filled by people applying from outside the organisation, yet only 25% of these individuals are from working class backgrounds, according to the report.

Source: Bridge Group / Progress Together

Supporters of Progress Together include the FCA, the Investment Association, PIMFA, the CII and the ABI.

Progress Together wants a number of reforms in financial services to improve socio-economic diversity.

It wants firms to collect employee socio-economic data and publish it externally - and regulators should strongly advocate for this - and targets set for socio-economic background diversity. It also wants to see promotion opportunities advertised widely and targeted programmes to develop talent and leadership programmes that incorporate senior sponsorship.

Sophie Hulm, CEO of Progress Together, said: “The financial services sector has a lot of work to do to level the playing field so that people from all backgrounds have the opportunity to progress their careers. Our members are leading the way in this field and should be congratulated for all their hard work towards improving socio-economic diversity to ensure that people from working class backgrounds are not held back because of where they started out in life.

“We know greater workforce socio-economic diversity fits squarely within the ‘S’ in the ESG. But to evidence this to investors, standards setters, regulators and clients, the sector needs more data. We now need firms from all sub-sectors, including private equity, investment banking and wealth management to join the campaign and commit to improving the industry for everyone working in it.

“We are confident that the financial services regulators’ expected diversity and inclusion consultation will incentivise firms who are not already engaged with this issue.”

Nik Miller, CEO of the Bridge Group, said: “Among all combinations of gender and ethnicity, those from higher socio-economic backgrounds are much more likely to be found in the most influential roles in UK financial services.

“The evidence is clear. Progression and hiring are heavily influenced by attributes that have little or no correlation with job performance, but which are more available to those from higher socio-economic backgrounds. This includes drawing on family and alumni networks, and on cultural preferences that have currency in a profession that has been shaped over many years by this dominant group.

“This research also highlights important relationships between socio-economic background and gender. Women typically experience the negative effects of being from a lower socio-economic background more significantly than men – who are more often able to use their working-class roots as an asset in the workplace.”

• Read the full ‘Shaping our Economy’ report here.