Advancing social mobility in financial services

For more than a decade, there has been a growing spotlight for organisations on the positive impact of greater diversity and inclusion in the workplace.

In the wake of shocks to the economy and social fabric in recent years, such as the COVID-19 pandemic, disruptions to education and employment and the rising cost of living, there has been an increasing focus on socioeconomic diversity – encompassing factors such as educational level, social class and family income – across society and within organisations. The realm of socioeconomic diversity, and related concept of social mobility remain complex, and strongly intersectional, with gender, ethnicity, sexual orientation, and other factors often combining to exacerbate disadvantage.

Social mobility looks at “the extent to which individuals change their socioeconomic situation with respect to their parents (inter-generational) or during their lifetime (intra-generational mobility)”. Promoting socioeconomic diversity can support greater social mobility. This in turn can promote the health, wellbeing, income and future chances of individuals, as well support more vibrant, productive economies and societies.

When it comes to the workplace, barriers to entry and achievement in professional services can stem from wide-ranging and complex reasons, including the various disproportionate advantages that can come from a higher socioeconomic upbringing, such as routes to education and qualifications, and levels of aspiration, as well as systemic and cultural practices within organisations themselves.

A 2023 study surveying 25 financial services firms found that, on average, 50% of employees across all levels of seniority in the UK – a major hub for finance – are from a higher socioeconomic background, compared with 37% in the UK workforce. Those from higher socioeconomic backgrounds were more than twice as likely to be found in senior roles. The report found that this can stem from unequal progression, as well as experienced hiring, and also underlines talent pipeline as a key factor in existing disparities, citing junior and middle management roles.

Expanding educational opportunity

Increasingly, financial services firms are looking to integrate social mobility considerations within their approach on diversity, equity and inclusion.

In 2021, BNP Paribas partnered with Sponsors for Educational Opportunity (SEO) London, an organisation that aims to deliver superior bespoke educational support, training, and mentoring support to high-achieving students from underrepresented backgrounds. Today, over 20,000 diverse students are registered with one or more of SEO London’s programmes, which include Investment Banking and Asset Management.

The goal of the partnership was both to support SEO’s broader mission, as well as to offer talented students a chance to pursue a career with the Bank. In 2023 and 2024, 65 students were offered a place on BNP Paribas CIB’s Spring Insights or Summer Internship programmes, with 13 successfully joining the Graduate Programme.

Following the success of the partnership, in 2023, the Bank partnered with Sponsors for Educational Opportunity (SEO) Europe, SEO’s European branch, participating in its inaugural launch in France.

Activities have so far included a finance masterclass with 130 student participants, business etiquette workshops, and a Lunch & Learn on leveraged finance and acquisitions.

Laure Morsy, Global Head of Human Resources at BNP Paribas CIB notes: “We are convinced that diversity is a major component of our collective success and that a workforce made up of many backgrounds and perspectives will enable us to better serve our diverse clients and broader communities. SEO’s approach in terms of educational programmes and training is unique in the financial sector in France and represents a powerful lever to facilitate the professional integration of young talent.”

In Asia Pacific, the Bank is partnering with the Asian University for Women, an independent institution dedicated to women’s education and leadership development, which aims to support women drawn from diverse national, ethnic and socioeconomic backgrounds across the region.

In 2024, the Bank sponsored three interns from Bangladesh, India and Myanmar to join its Global Markets business lines based in Hong Kong. The partnership aims to provide valuable career experience to participants, with the potential to move to a permanent position.

Brian McCappin, Deputy Head of Global Markets APAC, and Head of Institutional Clients Group APAC, took on senior sponsorship of the partnership. He comments: “Our BNP Paribas APAC team is passionate about finding diverse talent that truly represents the incredible ethnic and socioeconomic breadth of the region. In partnership with the Asian University for Women, we have found a way to nurture talented individuals while promoting greater gender equity within our business and supporting this fantastic organisation.”

In India, the Bank is also focusing on upskilling as a lever to improve socioeconomic diversity. Since 2022, in Chennai, the Bank has partnered with NGOs Stella Maris College Drive and the Agaram Foundation – which is supported by BNP Paribas – to work with undergraduate students, the majority women, from disadvantaged backgrounds training in key financial services knowledge and skills during their final year of university, with the potential to undergo more rigorous training over seven months. The partnership has resulted in 18 students being offered a permanent role at BNP Paribas India.

Kathiravan Gnanasekaran, Assistant Vice President, Securities Services IT, APS at BNP Paribas and programme manager for the initiative comments: “Leading this training programme has been an incredibly rewarding experience. Working closely with a dedicated team of educators and professionals, it has given us, and the Bank, the opportunity to shape the future of young minds and guide them towards achieving their full potential. The enthusiasm and eagerness to learn that the students bring to the programme is truly inspiring, and has reinforced my belief in the power of education and the impact it can have on individuals and society as a whole.”

Promoting community impact

In Canada, the Bank is looking at promoting social mobility, as well as wider societal inclusion through its IMPACT programme.

Each year, seven undergraduate or Master’s students from Quebec universities are invited to take part in a paid summer internship, where they are mentored by leaders within BNP Paribas’ employee networks, or ERGs. Applicants must demonstrate their active participation in their local communities and should aim to use their work experience to further community projects. Their projects include supporting a legal aid initiative and mentoring other law students; co-founding a university club to develop students’ entrepreneurial mindset; and supporting an NGO working in India.

Patrick Denzel Isaac, Transversal Operations Controls Analyst for BNP Paribas Canada, who worked on the initiative comments: “Forging a more equitable society needs ideas and action at all levels – starting with the communities on our doorstep. The IMPACT programme enables us to invest in and empower the young leaders of tomorrow, all while helping us to build and sustain a diverse and innovative workforce and promoting community engagement and impact.”

In the UK, the Bank is a long-standing partner of Making the Leap, a charity that aims to advance social mobility, supporting young people from disadvantaged backgrounds to develop the skills and confidence they need to thrive and find employment.

Data shows that young people’s socioeconomic background is strongly linked to their occupational level and income: in 2022, 32% of young people aged 25 to 29 from a higher professional background were found to be in a higher professional occupation, compared to just 7% of those from a lower working-class background.

Skills, training and work experience opportunities are key to closing the gap; according to Making the Leap, 93% of employers consider soft skills such as confidence, communication and teamwork just as important as hard skills when evaluating job candidates.

In 2023, staff volunteers from BNP Paribas supported almost 1,000 young people in the UK to gain such critical essential skills, from helping young people to practise their networking to hosting mock interviews, work experience placements and job search clinics for young people.

Tracey Fuller, Head of UK Community Engagement, BNP Paribas comments: “Our extraordinary volunteers make a huge difference to the valuable and important work of our charity partners, many of whom serve communities on the doorstep of our UK offices. Every young person deserves a chance to learn, to follow a career path and to fulfil their potential, and we’re proud to be able to play our part.”