Bill Overview
Title: Promoting Diversity and Inclusion in Banking Act of 2021
Description: This bill requires banking regulators to rate diversity and inclusion when assessing depository institutions under the Uniform Financial Institutions Rating System or a comparable rating system.
Sponsors: Rep. Green, Al [D-TX-9]
Target Audience
Population: Employees of depository institutions worldwide
Estimated Size: 2000000
- The bill requires banking regulators to consider diversity and inclusion when assessing banks, which implies it targets institutional changes rather than specific individuals.
- Depository institutions will need to make changes to meet these diversity and inclusion ratings, impacting their hiring, promotion, and internal diversity programs.
- Employees at these financial institutions will be directly impacted as institutions improve their diversity programs, offering more opportunities to underrepresented groups.
- Customers may indirectly benefit from a more diverse and inclusive banking environment, potentially leading to improved services and products for diverse communities.
Reasoning
- The policy primarily impacts employees within US banking institutions, with potential indirect benefits to customers.
- The budget constraints mean that the implementation will start modestly, causing gradual changes over time.
- Personnel involved in HR or diversity departments may experience more immediate effects.
- In areas with higher diversity, regulatory changes might be felt sooner due to existing infrastructure and focus on diversity initiatives.
- Non-directly affected individuals, primarily the customers, may not see immediate shifts but could benefit long-term from improved service responsiveness and inclusivity.
Simulated Interviews
Human Resources Manager (New York, NY)
Age: 30 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 15.0 years
Commonness: 12/20
Statement of Opinion:
- The increased focus on diversity is long overdue in the banking sector.
- Implementing these changes can lead to a more dynamic and representative workplace.
- Challenges will include meeting new compliance requirements without additional resources.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 9 | 6 |
| Year 20 | 9 | 6 |
Bank Teller (Dallas, TX)
Age: 24 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 15/20
Statement of Opinion:
- Hoping there will be more career advancement opportunities.
- Concerned about the actual execution by management.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 8 | 5 |
| Year 10 | 8 | 5 |
| Year 20 | 7 | 6 |
Branch Manager (San Francisco, CA)
Age: 45 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 20.0 years
Commonness: 10/20
Statement of Opinion:
- This bill is a breath of fresh air for our industry.
- I'm optimistic about attracting more diverse talent.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 9 | 7 |
| Year 10 | 10 | 8 |
| Year 20 | 9 | 8 |
Chief Financial Officer (Charlotte, NC)
Age: 50 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 15.0 years
Commonness: 8/20
Statement of Opinion:
- The cost of compliance could be significant if not managed well.
- It's important to align this with our existing initiatives for efficiency.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 8 | 7 |
| Year 20 | 8 | 7 |
Customer Service Representative (Boston, MA)
Age: 29 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 8.0 years
Commonness: 14/20
Statement of Opinion:
- I believe this will foster a more positive work environment.
- Training and resources will be crucial for real impact.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 7 | 5 |
| Year 10 | 7 | 6 |
| Year 20 | 6 | 6 |
Loan Officer (Chicago, IL)
Age: 38 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 16/20
Statement of Opinion:
- I hope this policy will enhance our customer service experience.
- I'd like to see more diverse leadership as a result.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 8 | 7 |
| Year 20 | 7 | 7 |
Compliance Officer (Houston, TX)
Age: 34 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 15.0 years
Commonness: 10/20
Statement of Opinion:
- A more structured focus on diversity metrics is beneficial.
- It will be a challenge to balance this with existing regulatory work.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 9 | 7 |
| Year 10 | 9 | 8 |
| Year 20 | 9 | 8 |
Financial Advisor (Los Angeles, CA)
Age: 40 | Gender: other
Wellbeing Before Policy: 8
Duration of Impact: 20.0 years
Commonness: 5/20
Statement of Opinion:
- Seeing improved diversity in banking can ripple down to better customer relationships.
- It's vital to ensure these policies translate into practical solutions.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 9 | 8 |
| Year 10 | 9 | 8 |
| Year 20 | 8 | 8 |
IT Specialist (Miami, FL)
Age: 27 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 13/20
Statement of Opinion:
- Our software needs to better support the diversity initiatives.
- Tech must align with these new goals.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 6 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 6 | 6 |
Marketing Analyst (Atlanta, GA)
Age: 31 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 10.0 years
Commonness: 9/20
Statement of Opinion:
- A more inclusive banking environment could expand our market reach.
- We need to align messaging with these new policies to reinforce impact.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 8 | 7 |
Cost Estimates
Year 1: $15000000 (Low: $12000000, High: $18000000)
Year 2: $14000000 (Low: $11000000, High: $17000000)
Year 3: $13000000 (Low: $10000000, High: $16000000)
Year 5: $12000000 (Low: $9000000, High: $15000000)
Year 10: $10000000 (Low: $8000000, High: $13000000)
Year 100: $5000000 (Low: $4000000, High: $6000000)
Key Considerations
- Implementation requires regulators to develop metrics and systems for diversity evaluation, necessitating initial investment.
- There is potential for variation in compliance costs across different sized institutions.
- Potential improvements in financial performance and risk management due to increased diversity in institutional practices.