As a highly competitive industry, investment banking has long struggled with lack of diversity and inclusion, especially in gender and ethnicity. Major Wall Street banks have been criticized for being dominated by white males. To improve diversity and tap into wider talent pools, top investment banks such as Goldman Sachs, Morgan Stanley and JP Morgan have been actively implementing various diversity programs targeting female, Black, Hispanic and LGBTQ candidates. These programs provide networking, mentoring, training opportunities to help historically disadvantaged groups get a foot in the door.
Women-focused diversity programs aim to bring more female students into investment banking
Historically, investment banking has been a male-dominated industry. Women have faced barriers to entry and advancement due to gender discrimination and lack of work-life balance. To change the status quo, major investment banks are partnering with organizations like Girls Who Invest to recruit more young women into the field. Goldman Sachs’ Women’s Network helps women employees through mentoring circles and leadership training. Morgan Stanley has a Women’s Business Alliance supporting women’s career growth. Citigroup runs a 3-day immersive program for female sophomores and juniors to explore investment banking. JPMorgan Chase’s Women on the Move conferences connect female students with senior female executives to encourage them to pursue banking careers.
Racial and ethnic diversity programs create pathways for Black and Hispanic students
Despite efforts to diversify, Black and Hispanic professionals still only account for a small percentage in investment banks. Many banks now implement racial/ethnic diversity programs to tap into this pool of talents. Morgan Stanley has a Black, Hispanic and Native American (BHNA) program to recruit minority undergrads through conferences and coaching. Goldman Sachs partners with Management Leadership for Tomorrow, Sponsoring Leadership and Access Network and other organizations to guide minority candidates. Citi’s Programs for Black and Hispanic/Latino Heritage groups provide networking opportunities, mentoring and internships. JPMorgan Chase launched Advancing Black Pathways targeting Black workers and students. Banks also partner with diversity-focused student organizations like National Association of Black Accountants.
LGBTQ diversity programs advocate for and develop LGBTQ talent in investment banking
The LGBTQ community has faced discrimination and stigma in the finance world. Leading investment banks are striving to create inclusive cultures for LGBTQ employees through their diversity programs. Goldman Sachs has various LGBTQ recruitment initiatives and its LGBTQ Pride Network offers mentoring and allies training to support LGBTQ staff. Morgan Stanley’s LGBT & Allies program assists with recruiting and partners with Out Leadership. Citi Pride provides engagement opportunities for LGBTQ employees. JPMorgan Chase works with organizations like Reaching Out MBA to recruit LGBTQ candidates. Banks also sponsor LGBTQ case competitions like the Venture Out Investment Competition to identify promising candidates.
Early diversity programs target underrepresented students from freshman year to build the pipeline
To build a strong, diverse talent pipeline, banks are also engaging promising students from freshman year through early diversity programs. Goldman Sachs offers Exploratory Programs for diverse freshmen to provide insights into banking. Morgan Stanley has a Sophomore Diversity Program to recruit young minority students. Citi has a range of early discovery programs aimed at female, Black and Hispanic freshmen and sophomores. JPMorgan Chase’s Advancing Black Leaders programs targets high-achieving Black college freshmen to mentor them towards banking careers. Capturing diverse talent early allows banks to train and develop them into strong candidates for future internship and fulltime roles.
Major Wall Street investment banks have implemented wide-ranging diversity programs targeting women, minorities, LGBTQ groups to address the lack of diversity. Early engagement, networking, mentoring help disadvantaged groups navigate the recruiting process and succeed in banking careers. Sustained, multifaceted efforts are still needed to nurture diverse talent and transform investment banking culture.