In the wake of International Women’s Day on 8 March, a wave of change swept through leading US banks, forcing them to backtrack on their commitments to diversity and inclusion. The new executive order from the Trump administration deemed diversity programs in the public sector as ‘radical and wasteful’, leading to the termination of such initiatives. This decision had a ripple effect on the private sector, with businesses, including major banks, facing the risk of losing lucrative government contracts if they continued to prioritize diversity and inclusion efforts.
Citi, known for appointing the first female leader of a major US bank, set the tone by discarding ‘aspirational representation goals’ and rebranding diversity, equity, and inclusion (DE&I) to ‘talent management and engagement’. Other banks quickly followed suit, with Bank of America emphasizing the creation of an ‘inclusive environment’ and JP Morgan Chase scaling back on spending initiatives that were deemed ‘wasteful’. Wells Fargo also made significant changes, discontinuing diversity requirements for senior roles and scrapping training programs.
Despite the setback, it’s worth noting that US banks have been at the forefront of promoting diversity and inclusion for over a decade, with many implementing robust programs and initiatives to support senior female representation. However, the recent shift in policy raises questions about the long-term impact of these efforts on the industry.
As we approach International Women’s Day 2025, it’s an opportune moment to reflect on the progress made by these initiatives. OMFIF’s Gender Balance Index has been tracking senior female representation in global financial institutions, with US banks initially leading the way. However, recent data shows a decline in scores for some banks, indicating a potential regression in gender diversity efforts.
The challenge now lies in adapting to the new environment and finding innovative ways to support female representation in leadership roles. While the landscape may have shifted, there is still a strong pipeline of talented women entering the industry, presenting an opportunity for banks to tailor programs that cater to their needs.
Ultimately, the success of diversity and inclusion initiatives will depend on the commitment of individuals and the culture within each institution. Despite the changing landscape, there is optimism that progress can still be made, with a focus on mentorship, sponsorship, and creating a supportive environment for women in finance.
As we navigate these changes, it’s essential to continue monitoring progress through initiatives like OMFIF’s Gender Balance Index, ensuring that gender diversity remains a priority in the financial sector. Subscribe to OMFIF’s newsletter for more insights on this topic and stay informed about the latest developments in diversity and inclusion in the industry.
