REVIEW
EDI
How education can support EDI in the mortgage industry Gordon Reid Business and development manager, London Institute of Banking & Finance
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n October 2021, the Association of Mortgage Intermediaries (AMI) published a report on equity, diversity, and inclusion (EDI) in the industry – and you might describe the findings as a bit of a wake-up call. Only 43 per cent of AMI members surveyed believe that the mortgage industry attracts a workforce that truly represents the whole UK community. The report highlighted industry concerns about opportunities for career progression and rewards, as well as about inappropriate and discriminatory behaviours. On a more positive note, it also found that the vast majority of people now understand the importance of improving EDI in the mortgage sector. The greater challenge is understanding how to do that. WHY IMPROVING EDI MATTERS
To reflect the market it serves, the mortgage industry must attract, retain, and develop people from a full range of cultural, gender, age, and ethnic backgrounds – and must encompass different demographic profiles. Without this diversity of background and experience among advisers and others, it’s doubtful whether firms can fully understand the needs of the whole range of customers they serve. Interestingly, according to research by McKinsey, the most diverse companies are 35 per cent more likely to outperform the least diverse. EDI has also been shown to enable greater www.mortgageintroducer.com
creativity and innovation, create improved public perception of the industry, and improve staff retention. And as the AMI report shows, perhaps the key to this last point is ensuring that the behaviours of everyone in the industry are appropriate. WHY EDUCATION IS KEY
When a sustained change of behaviour is required, education is usually the key to achieving it. This is primarily because learning plays a huge role in establishing the culture of an organisation, including by contributing significantly to the understanding of behavioural standards. In addition, because many unfair practices or inappropriate behaviours are born out of a lack of understanding, learning is often the most effective way to address these. To have a positive impact on EDI, learning programmes do not necessarily need to focus directly on these issues. However, when designing and delivering learning, it’s essential that there be no unconscious biases at play. So, when reviewing your learning programmes, ask yourself a few questions to check for unconscious bias. PROGRAMME ACCESSIBILITY
You should think very carefully about how and when any programme is delivered. If it includes sessions at a fixed time, do they take into account the needs of those with caring responsibilities, such as parents? Flexible, modular, on-demand learning is likely to be accessible, and more appealing, to a wider range of learners. But if it’s online, does it work for those using assistive technologies to access digital content? Will the programme appeal more to some demographic groups than others?
Is the language used to promote the learning clear about the benefits to everyone? Have you included enough detail? Check and check again for any unconscious biases. Is the programme content appropriate? Is there anything about the content that means some groups will be less likely to engage with it? Will everyone feel comfortable enough to participate fully? A FOCUS ON BUSINESS PRACTICES
Education also has a major role to play in many of the other functions of a company. For example, how do you ensure that your recruitment policies and procedures are fair? Do they attract people from all backgrounds, with the appropriate range of skills, knowledge, and experience? Have you looked closely at how you recognise and reward staff? Is this done equitably and in ways that meet the cultural expectations of current and prospective employees and customers? Do career pathways provide the right opportunities for everyone based on competence and capability, above all other considerations? How are employees educated on the treatment of vulnerable customers? Effective learning programmes play a critical role in ensuring that all staff recognise vulnerable customers and know how to support them. WHAT THE REGULATOR SAYS
In July 2021, the Financial Conduct Authority (FCA) and Prudential Regulation Authority issued a joint discussion paper on accelerating the pace of meaningful change in diversity and inclusion in the financial services sector. The FCA said it was “critical” to “our work on culture and governance” and that EDI was “based in existing work around the treatment of consumers and the proposed new “Consumer Duty”, due to come into force later this year. The FCA also highlighted the benefits of a diverse and inclusive workplace to organisational risk management. Regulations aside, there are lots of good business reasons for improving EDI. Perhaps now is a good time to really focus on how your organisation is doing. M I JUNE 2022 MORTGAGE INTRODUCER
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