Racial diversity at the largest U.S. banks - statistics & facts
Companies increasingly understand the value of recruiting and retaining diverse employees, as diversity plays an important role in a company’s ability to adapt and grow. Diversity and inclusion (D&I) have also become a significant component of environmental, social and governance (ESG) standards in recent years, and it is now one of the ESG priorities for investors worldwide.
At the largest U.S. banks, D&I generally focuses on gender and racial diversity, both for internal hires and external suppliers. For now, however, despite efforts by banks, high racial diversity exists only in terms of the total workforce. Parity on all corporate levels is still lacking.
Racial diversity in the total workforce: slow progress
Recent company figures on the share of racial minorities in the total workforce tend to shine a positive light on racial diversity at the largest U.S. banks. After all, the share of racial minorities in the total workforce was, on average, 45.8 percent in 2023. In addition, most banks have made progress in recent years: The share of white employees decreased while the share of racial minorities increased in the total workforce, albeit slightly. The share of racial minorities in the total workforce of Bank of America, for instance, increased by four percentage points between 2019 and 2023, while at PNC Financial Services, it increased by over five percentage points between 2020 and 2023. The share of racial minorities in the total workforce, however, does not paint an accurate picture of racial diversity at the largest U.S. banks.
Racial diversity in the leadership
Leadership positions at the leading U.S. banks are still predominantly filled by white employees. Even at Citigroup, the one with the most diverse senior leadership, the share of racial minorities on the senior level was just above 30 percent in 2022. Racial minorities on the boards of directors are even less represented. At JPMorgan Chase, for instance, which is the largest U.S. bank in terms of total assets, 82 percent of the directors are white. This raises the question of how the share of racial minorities is so much higher in the total workforce. Just as with gender diversity at the largest U.S. banks, the answer is in the details: The relatively high share of racial minorities in the total workforce is mainly a result of the high share of racial minorities in lower-level corporate roles, such as administrative support or sales positions.
While U.S. banks have made progress in increasing racial diversity within their total workforce, leadership roles remain predominantly filled by white employees. Efforts to promote racial minorities into senior positions are still lacking, and more work is needed to bridge this gap. As banks continue to recognize the importance of diversity and inclusion, greater focus on fostering racial diversity, particularly in leadership, will be essential for future growth and equality within the industry.
At the largest U.S. banks, D&I generally focuses on gender and racial diversity, both for internal hires and external suppliers. For now, however, despite efforts by banks, high racial diversity exists only in terms of the total workforce. Parity on all corporate levels is still lacking.
Racial diversity in the total workforce: slow progress
Recent company figures on the share of racial minorities in the total workforce tend to shine a positive light on racial diversity at the largest U.S. banks. After all, the share of racial minorities in the total workforce was, on average, 45.8 percent in 2023. In addition, most banks have made progress in recent years: The share of white employees decreased while the share of racial minorities increased in the total workforce, albeit slightly. The share of racial minorities in the total workforce of Bank of America, for instance, increased by four percentage points between 2019 and 2023, while at PNC Financial Services, it increased by over five percentage points between 2020 and 2023. The share of racial minorities in the total workforce, however, does not paint an accurate picture of racial diversity at the largest U.S. banks.
Racial diversity in the leadership
Leadership positions at the leading U.S. banks are still predominantly filled by white employees. Even at Citigroup, the one with the most diverse senior leadership, the share of racial minorities on the senior level was just above 30 percent in 2022. Racial minorities on the boards of directors are even less represented. At JPMorgan Chase, for instance, which is the largest U.S. bank in terms of total assets, 82 percent of the directors are white. This raises the question of how the share of racial minorities is so much higher in the total workforce. Just as with gender diversity at the largest U.S. banks, the answer is in the details: The relatively high share of racial minorities in the total workforce is mainly a result of the high share of racial minorities in lower-level corporate roles, such as administrative support or sales positions.
While U.S. banks have made progress in increasing racial diversity within their total workforce, leadership roles remain predominantly filled by white employees. Efforts to promote racial minorities into senior positions are still lacking, and more work is needed to bridge this gap. As banks continue to recognize the importance of diversity and inclusion, greater focus on fostering racial diversity, particularly in leadership, will be essential for future growth and equality within the industry.
