Context
The purpose of the financial services industry, the culture and leadership of firms, and the role of this sector in wider society have all been the subject of ongoing debate since the Global Financial Crisis of 2008. London’s position as a global financial hub and the significance of financial services in the UK economy give discussion of UK finance particular importance. Regulatory reform following the crisis has been accompanied by attention to conduct, culture, and leadership. This report proposes an additional focus on character. The importance of good character in finance is sometimes referenced as a professional expectation,
but the deeper personal and developmental perspective that character brings into view has more value to add. In our research into character, culture, and leadership in UK finance, we included content analysis of organisational values, a prototype analysis survey exploring how good leadership is understood in UK finance, and semi-structured interviews with participants across leadership levels within six firms. Findings were discussed with research partners and industry bodies, including at a symposium and conference held at the University of Oxford.
Key findings
1. Culture and character are interdependent: culture shapes character, and character, especially of leaders, can shape culture.
2. The top five stated values of UK finance firms are integrity, collaboration, customer service, excellence, and passion.
3. Virtues (excellences) of character enable values to move from principles to practice. UK firms consider their values important for culture and conduct, but also as a driver of commercial success.
4. Participants identified 141 features of good leadership in finance, reflecting three dimensions: Character, professional competence, and interpersonal skills. 44% of features identified by participants relate to interpersonal skills, 43% to character, and 13% to professional competence.
5. Character is essential for leaders to navigate the present ‘tides of disruption’ identified by the Financial Services Skills Commission, particularly in the areas of digital technology, hybrid working patterns, sustainability, and diversity.