Diverse boards create revenue growth through the pandemic

The Story: According to a new report by BoardReady, companies that have diverse boards are better prepared to come out on top when faced with challenging circumstances, like those found in a pandemic. Further, McKinsey’s Report on Racial Equity in Financial Services finds that “for every 10 percent more racially or ethnically diverse a company’s senior team is, earnings before interest and taxes (EBIT) is nearly 1 percent higher.”

The Takeaway: Companies perform better when they prioritize diversity. In 2021 and beyond, it is vital for financial intuitions to have both diverse company leadership and a customer-first approach as they serve their communities. This holistic strategy will help positively position financial institutions as the economy continues to rebound.

Sources: BoardReady, Lessons from the Pandemic: Board Diversity and Performance July, 2021