Morgan Stanley has launched a new recruitment programme aimed at hiring more Black and female candidates with experience outside of the financial sector, as large investment banks look for new ways to bolster diversity in their ranks.
The US investment bank is set to hire up to 10 Black or female candidates with at least three years experience outside of the financial sector for its sales and trading under a new scheme called the experienced professionals’ program. This is the first recruitment scheme of its kind within revenue generating parts of the investment banking sector.
The lack of Black talent in front line positions in banking has come under increased scrutiny following the Black Lives Matter movement, which was sparked by the death of George Floyd by US police last year. In the City, there is a dearth of Black candidates in senior revenue-generating roles. Research by Financial News last year found that of the top 650 investment bankers in the UK, just three were Black.
Morgan Stanley is looking outside the financial sector for new recruits in order to broaden the potential talent pool. Potential candidates need at least three years of work experience in non-financial industries, and the first group of new hires will start at the bank in February 2022. They will receive an initial eight weeks of training to learn about the sales and trading business.
Earlier this year, Morgan Stanley launched a scholarship programme aimed at students from ethnic minority or lower socioeconomic backgrounds, providing them with a £10,000 grant to study and an internship at the bank.
Banks including Goldman Sachs, JPMorgan and HSBC have unveiled new targets to increase the number of Black recruits over the coming years.
Ian Clarke, a 15-year veteran of HSBC who created a 48-page document outlining the representation of Black, indigenous or people of colour (BIPOC) employees at the bank, told FN previously that the industry still had a long way to go and that the industry was still broadly staff by white males in the senior ranks.
Morgan Stanley’s programme was created by Derek Melvin, a Black managing director within its investment bank in New York. The bank kicked it off in September last year and around 70 Black or female hires have joined since then.
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