The mortgage market never stands still; it’s constantly adapting and evolving. From changing customer needs and interest shifts, through to government reforms and the implementations of new technologies, the past couple of years have proven that point beyond all doubt.

Fortunately, the resilience shown by the property market during this period demonstrates its ability to adapt and meet challenges head on. In my opinion, one of the less discussed reasons for this adaptability in our industry is the greater focus on diversity and inclusivity.

For many years, the financial services sector was made up of teams that had a fairly narrow set of backgrounds and career paths. The phrase ‘male, pale and stale’ springs to mind. Naturally, if that’s the only profile we recruit as a sector, we risk missing out on the perspectives, skills and ideas that come from a more varied team.

Why diversity matters

Anyone who’s worked in the specialist lending market for long enough will know how varied our customers are. Borrowers differ wildly in terms of their age, background, nationality, ethnicity, gender, careers and financial circumstances, and to serve them as best as possible, that diversity ought to be reflected in the teams that serve them.

Otherwise, there’s a real risk that the products we design and, moreover, the service we offer, won’t meet the needs of the full customer base. That, in turn, risks leaving already underserved borrower groups even further behind.

The business case is clear as well. The value of diversity initiatives has been a big debate in recent months, but research consistently shows that diverse teams simply perform better. For example, data from global management consulting firm McKinsey & Company suggests these teams are 35% more likely to have financial returns above their industry medians.

For the mortgage sector, the implications are obvious. Many people already face barriers to accessing finance, whether that’s due to poor credit history, self-employment, non-standard income or limited investment experience.

By bringing more diverse perspectives into our teams, we stand a better chance of designing products and processes that meet those needs, and of ensuring that more borrowers are supported rather than excluded.

Diversity means nothing with inclusivity

On its own, however, diversity is not enough. Bringing different perspectives or backgrounds into a room is one thing but making them feel supported and able to contribute to creating better outcomes for people is another thing entirely.

Therefore, it’s important to create an environment where people are comfortable in bringing their experience – wherever it comes from – to the table, and that their voices will be heard. In practice, this means giving newer team members the space to contribute their ideas or even question existing practices.

It also means ensuring that everyone in the workforce recognises that career progression doesn’t follow a single path, and that everyone can provide useful or innovative ideas that others may not have thought about.

Approaching recruitment differently

These things were front and centre in my mind when I was helping build out the proposition and team at ModaMortgages. We officially launched at the start of this year, but for over two years before that, the entire proposition was being developed from the ground up. Throughout, we were trying to do things differently in the buy to let space, and I knew that had to start with how we approached building the team.

I’ve been lucky enough to work with some amazingly talented and experienced individuals in my 20-plus years in the industry. But I didn’t want to bring in any pre-conceived ideas about how we would operate, and that meant switching focus from CVs stacked with years of BDM experience to those which had evidence of personality and mindset.

That meant we were able to bring in people with a wide range of backgrounds – some had industry experience, others came from completely different sectors.

When ModaMortgages’ sales team merged with CHL Mortgages for Intermediaries’ sales team (we’re both part of the Chetwood Bank family), the result was a combined team rich in different perspectives and skills.

It’s still early days, but the benefits are already clear. Intermediaries now have access to a sales team that brings together two lenders’ experiences, approaches and ideas – a set-up that gives brokers more options and ultimately helps them better serve their own clients.

Lessons for the future

The past few years have demonstrated just how much the mortgage sector had to evolve to stay relevant, resilient, and responsive to customer needs. But what has struck me is that adaptability doesn’t come from process tweaks or the implementation of new technology – it comes from the people we hire.

Moving forward, therefore, I’m hopeful that the sector continues to improve its diversity and inclusivity. In doing so, we can not only reflect the broad spectrum of customers that we serve but also benefit from the fresh perspectives and innovative thinking that different experiences bring to the table.

Darrell Walker is director of sales & distribution at Chetwood Bank