TAKING PAYMENTS ECOSYSTEM CAPABILITIES TO THE NEXT LEVEL- FOCUS ON - PowerPoint PPT Presentation

TAKING PAYMENTS ECOSYSTEM CAPABILITIES TO THE NEXT LEVEL- FOCUS ON DIVERSITY Payments New Zealand- November 2016 PRESENTED BY: KRISTY DUNCAN WOMEN IN PAYMENTS, FOUNDER & CEO

PRESENTATION OVERVIEW Where are we now on gender diversity? • Why is diversity & inclusion important? • Where are the opportunities? • 2 TAKING PAYMENT SYSTEM ECOSYSTEM CAPABILITIES TO THE NEXT LEVEL- DIVERSITY & INCLUSION- PAYMENTS NEW ZEALAND 2016

WE HAVE MADE PROGRESS Payments NZ 2016 – women comprise: • 30% of attendees • 23% of speakers • First NZ woman to run large public • company in 1999- Theresa Gattung (Telecom) First Australian woman CEO was in 2002 • (Gail Kelly appointed to head St George Bank; later headed up Westpac) 3 TAKING PAYMENT SYSTEM ECOSYSTEM CAPABILITIES TO THE NEXT LEVEL- DIVERSITY & INCLUSION- PAYMENTS NEW ZEALAND 2016

PROGRESS TO THE TOP VERY SLOW Gender diversity in the C-Suite has improved, but we are a long way from parity 4 TAKING PAYMENT SYSTEM ECOSYSTEM CAPABILITIES TO THE NEXT LEVEL- DIVERSITY & INCLUSION- PAYMENTS NEW ZEALAND 2016

WHY IS DIVERSITY IMPORTANT? Many strands of diversity- thought, • gender, ethnicity, experience, skills, age Diversity has a positive impact on an • organization’s performance Win the war for talent • Strengthen customer focus • Match employee profile to reflect customer • profile Increase employee satisfaction • Improve decision making • Raise image of organization • 5 TAKING PAYMENT SYSTEM ECOSYSTEM CAPABILITIES TO THE NEXT LEVEL- DIVERSITY & INCLUSION- PAYMENTS NEW ZEALAND 2016

EQUAL OPPORTUNITY- RIGHT OR PRIVILEGE? 6 TAKING PAYMENT SYSTEM ECOSYSTEM CAPABILITIES TO THE NEXT LEVEL- DIVERSITY & INCLUSION- PAYMENTS NEW ZEALAND 2016

WHY GENDER DIVERSITY? A 2014 study by Credit Suisse found a 27% higher ROE • and 42% higher dividend payouts in companies where women comprised at least 10% of the top operational roles vs 5% McKinsey & Company found in a 2014 study 15% higher • financial returns for companies with higher gender diversity at the leadership level (at least 22% of the leadership team) A 2015 study by Quantopian benchmarked Fortune 1000 • companies with women CEOs against S&P performance between 2002 and 2014, and found equity returns for the 80 firms with female CEOs were 226% better than the S&P 500 performance 8 TAKING PAYMENT SYSTEM ECOSYSTEM CAPABILITIES TO THE NEXT LEVEL- DIVERSITY & INCLUSION- PAYMENTS NEW ZEALAND 2016

HOW CAN WE, AS LEADERS, PROMOTE DIVERSITY? Strategies for Success • Rethink the way we work (fix the industry, not the women) • Adopt family-friendly practices for everybody- more flexibility benefits all • Sponsor from the top • Measure and track progress for all strands of diversity • Number interviewed and hired, by diversity strand, at all stages of the hiring • process (both new employees and internal hires) Compensation and promotion rates, by diversity strand, at all levels • Attrition- numbers leaving and why • Employee engagement levels; perception of meritocracy and work/life balance • 9 TAKING PAYMENT SYSTEM ECOSYSTEM CAPABILITIES TO THE NEXT LEVEL- DIVERSITY & INCLUSION- PAYMENTS NEW ZEALAND 2016

ADDRESSING UNCONSCIOUS BIAS Identify and interrupt gender bias (4 key areas) • Likeability- success and likeability are positively correlated for • men, but negatively correlated for women If a woman is competent, she seems less likeable • If a woman is nice, she seems less competent • Assertive women are perceived as aggressive and ambitious • • Assertive men are perceived as confident and strong Performance Evaluation Bias • One study cited 66% of women receiving negative feedback during • performance appraisal on their personal style, such as “You can sometimes be abrasive.” Less than 1% of men received similar feedback. Performance evaluation bias is more pronounced when review criteria • are unclear, and evaluators rely on gut feelings and personal inferences. 10 TAKING PAYMENT SYSTEM ECOSYSTEM CAPABILITIES TO THE NEXT LEVEL- DIVERSITY & INCLUSION- PAYMENTS NEW ZEALAND 2016 Training to recognize and counteract •

ADDRESSING UNCONSCIOUS BIAS (CONTINUED) Maternal Bias- Mothers are assumed to be less competent • and less committed to their careers Held to higher standards and presented with fewer opportunities • Next Generation • Research in many countries shows children of involved fathers are • healthier and happier, and have fewer behavioural problems A study by University of British Columbia found that when fathers • share equally in housework, their daughters are less likely to limit their aspirations to typically female jobs. When children see both parents pursuing careers AND sharing • housework, they are more likely to carry gender equality forward to the next generation; benefits entire society We need training to recognize and counteract unconscious • gender bias 11 TAKING PAYMENT SYSTEM ECOSYSTEM CAPABILITIES TO THE NEXT LEVEL- DIVERSITY & INCLUSION- PAYMENTS NEW ZEALAND 2016

BRINGING DIVERSITY TO PAYMENTS HM Treasury in the UK, the world’s largest exporter of • financial services, published a report in March this year, entitled “ Empowering Productivity: Harnessing the Talents of Women in Financial Services” Recommendations include: • Reporting- Every financial services firm operating in the UK is • encouraged to publish its own inclusion strategy and targets annually, and to report progress against targets Executive Accountability- The strategy should be owned and • driven by a senior member of the Executive Committee (preferably from a business line role), who is responsible and accountable for the strategy’s design, execution, and success Remuneration- Success against internal measures of the • organization’s gender balance strategy should form part of the annual bonus of all senior executives 12 TAKING PAYMENT SYSTEM ECOSYSTEM CAPABILITIES TO THE NEXT LEVEL- DIVERSITY & INCLUSION- PAYMENTS NEW ZEALAND 2016

ELEPHANT IN THE ROOM: GENDER PAY GAP 13 TAKING PAYMENT SYSTEM ECOSYSTEM CAPABILITIES TO THE NEXT LEVEL- DIVERSITY & INCLUSION- PAYMENTS NEW ZEALAND 2016

GENDER PAY GAP According to New Zealand Ministry for Women, in 2016 the gender pay gap in NZ was 12%, down from 16% in 1998; compares to European average of 16% in 2014 15 TAKING PAYMENT SYSTEM ECOSYSTEM CAPABILITIES TO THE NEXT LEVEL- DIVERSITY & INCLUSION- PAYMENTS NEW ZEALAND 2016

GENDER PAY GAP- HOW TO FIX Two solutions to eliminate the gender pay gap today: Implement pay 1. transparency Eliminate negotiation 2. 16 TAKING PAYMENT SYSTEM ECOSYSTEM CAPABILITIES TO THE NEXT LEVEL- DIVERSITY & INCLUSION- PAYMENTS NEW ZEALAND 2016

WHERE TO FROM HERE? We have an opportunity to use different • strands of diversity to drive equality in the payments industry Harnessing the talents of women will • help increase competitiveness, innovation, financial performance As leaders, we need to make diversity a • priority, develop strategies to achieve it, and track our progress against measurable targets 17 TAKING PAYMENT SYSTEM ECOSYSTEM CAPABILITIES TO THE NEXT LEVEL- DIVERSITY & INCLUSION- PAYMENTS NEW ZEALAND 2016

THANK YOU Kristy Duncan kristy@womeninpayments.org