Embedding DEI for Employees and Customers

The African nation of Chad — with a population of only 8.6MM that has more than 100 ethnic groups and languages — is commonly cited as being the world’s most culturally diverse country. At the other end of the scale, Japan and South Korea are recognized as two of the most homogenous countries. Communities are never completely homogenous and the same goes for organizations — both usually include people from a range of backgrounds. It’s particularly important for community financial institutions (CFIs) to understand and meet the needs and expectations of diverse customers and employees. Employee-focused diversity, equity, and inclusion (DEI) initiatives that encourage people to be their authentic selves can make employees feel more fulfilled — and often more productive. This, in turn, should enable an institution to provide a better service to its customers, as well as attract new customers who share similar values. Customer-focused DEI initiatives can also filter across to employees, helping to enrich an organization’s culture. We look below at some ways in which CFIs can ensure they promote DEI effectively. DEI Initiatives for Employees1. Lead by Example. DEI needs to start with leadership. CFIs can benefit enormously from having a diverse range of people in leadership positions, including on the board. A mix of views and experiences should help an institution improve decision-making and be better able to meet the needs of its employees — as well as any underserved communities. 2. Establish DEI Roles and Working Groups. To be as effective as possible, DEI needs to be incorporated at every level of an organization. Creating specific DEI roles, identifying diversity “ambassadors”, and setting up DEI working groups and committees can help create a strong inclusive culture. Creating roles such as Chief DEI Officer, DEI Program Manager, and DEI Facilitator may be helpful in setting, embedding, and managing DEI priorities and initiatives across the organization with the full support of the senior management team. Employee Resource Groups (ERGs) based on gender, race, ethnicity, sexual identity, and other diversity characteristics can also help traditionally underrepresented people to feel included in the workplace. One Canadian Credit Union has established a DEI Council and several ERGs. These groups hold seminars, workshops, and educational sessions to support and encourage openness and learning, all of which positively contribute to their employees’ well-being, the organization’s culture, and the quality of service customers receive. 3. Put DEI at the Center of the Employee Experience. Ensuring DEI forms part of an institution’s recruitment and hiring practices is one of the most important factors that will create positive change. This enables you to attract a wider variety of individuals, appeal to underrepresented talent from local communities, and make opportunities available to people from all backgrounds. You may also want to consider sponsorships, mentorship programs, and learning and development opportunities that provide staff from all backgrounds — particularly those from underrepresented groups — with the capabilities and tools to progress into leadership roles. Offering employees financial wellness programs and supporting them to achieve their own financial goals can also be important in encouraging engagement and improving staff morale. DEI Initiatives for Customers and the Community1. Develop Inclusive Products and Services. Ideally, a CFI’s products and services should be accessible and affordable to as wide a range of customers — both consumers and businesses — as possible. For example, simple, low-cost transaction accounts, free savings accounts, or relevant lifestyle-related rewards can help enable financial inclusion and engagement. Offering financial literacy programs can also serve to make financial services more accessible to more people. The Canadian Credit Union mentioned earlier has trained several of its employees as wellbeing coaches who provide customers with support and guidance throughout their financial journey. The ways in which CFIs market and distribute their products are also crucial. For instance, you’ll want to think about how different groups of people prefer to interact with services, where they go to find information about their financial requirements, and how they like to consume information. Reading Cooperative Bank in Massachusetts is reaching out to Spanish-speaking customers by translating its marketing material and other information to Spanish, recruiting Spanish-speaking branch staff, and providing digital banking and ATM options in Spanish. 2. Focus on Inclusive Lending. One of the best ways for a CFI to extend DEI efforts to its customers is to ensure that its lending processes are inclusive.Alternative credit scoring methods — such as rental and bill payments and Taxpayer Identification Numbers — and offering flexible loan payments are just some examples of how an institution can make it easier for previously underserved individuals to access loans. Developing very tailored loan products is another option: one bank in MN offers specialist loan products for minority-owned small businesses. CFIs may also want to consider partnering with local minority depository institutions, which play such an important role in providing opportunities and capital to small businesses and under-represented communities across the US. 3. Engage with Local Communities Positively. Given their community focus, it is particularly important that CFIs contribute positively to as many different local communities as possible. This could mean partnering with local community organizations, providing financial education, or using local suppliers and other small businesses in your supply chain. In the evolving DEI landscape, CFIs must continuously develop new ways to respond to and better serve and meet the needs of their customers, communities, and employees. Getting DEI right is good for a CFI’s employees, as well as its customers and, ultimately, the success of the organization.