White men from higher socio-economic backgrounds are thirty three times more likely to be found in senior roles in financial services compared with women with an ethnic minority background who are also from a lower socio-economic background, according to a new report.

The study of over 200,000 employees found that levels of socio-economic diversity reduce as seniority increases at financial services firms.

In total 58% of those at senior levels are from a higher socio-economic background, compared with 45% at junior levels.

The proportion who attended an independent school is also higher among those in senior positions – 21% against the national percentage of 6.5%.

Whilst the diversity at junior levels continued to improve, the pipeline of talent for senior financial services roles lacks diversity, according to the report. This was especially the case at the middle level of seniority, where on average more than half (51%) of employees are from a higher socio-economic background

Those from higher socio-economic backgrounds also continued to dominate the overall financial services workforce.

The only sectors with a higher percentage of overall workers from a higher socio-economic background than financial services (51%) were law (56%) and management consultancy (52%).

However, improvements have been made, as the proportion of those working in senior roles in UK financial services from a lower socio-economic background has increased from 26% in 2023 to 28%.

Sophie Hulm, CEO of Progress Together, called on the FCA to mandate the collection and reporting of socio-economic background data.

Mark Hoban, Chair of the Financial Services Skills Commission and former City Minister, said: "The demographics of the UK financial services sector do not reflect society as a whole. This impacts the sector’s ability to relate to a wide range of consumers, sound decision-making, and innovation. As the demand for tech and AI skills rises, companies that embrace diversity will be best positioned to 'win the war' for talent. To maintain its global competitiveness and to meet its obligations to society, the sector must improve.”

Progress Together compiled its Shaping the Sector report from data reported by over 200,000 UK financial services workers. The full report can be found online.